Top 10 Business Model Types-getinstartup

Greetings! Are you thinking of starting any kind of business? If yes, then without planning and research, it is not an easy task. One must know about the customer’s demand, selling a product and its specifications, and how one can monetize it. One must proceed slowly in this field through planning and selecting a business model. Without further ado, we are listing the 10 major Business Model which can help in solving your business-related problems. As today’s agenda is on “Top 10 Business Model Types”

What is a Business Model?

A business model refers to a model which describes how a company works, delivers, and manages the services. So, planning and strategies are needed in growing any kind of business. It helps in identifying the target audience for both new and established businesses.

Now, you have an idea of what a business model is? If yes, then have a look at the 10 business model types.

What are the Top 10 Business Model Types?

Most common business models types are listed below:

1. Subscription Model

A subscription model is the emerging business model in today’s era. It can be opted by traditional or online businesses as well. A month or a weekly subscription is given to the user so that he/she can enjoy the services.

2. Bundling Model

As its name suggests, this model involves the packaging of 2-3 products together under a single unit and then selling them for a lower cost. Thus, they can’t earn more profit as they sell 2-3 products in a bundle at a lower cost, but they succeed in targeting a larger number of audiences.

3. Freemium Model

The Freemium model became popular because of online and Software-as-a-Service businesses. In this, a software company provides free access to the basic tools for a short period of time. Thus, users develop their interest and hence, attract them to opt. for a paid premium after the free offer ends. Spotify sets an example following this freemium model, as it gives a lot of ads in between free music.

 4. Razor Blades Model

The razor blades model involves selling razors at a lower rate, hence making their customers permanent. So, that in the future they can buy expensive products too. In contrast to it, the reverse razor blade model is becoming more famous, as they offer products at a high cost to the customers and then promote the sales of the item at lower cost with their products. This is how this model makes the business earn more profit and attract more customers.

5. Leasing Model

This model involves buying the product from a seller, then it allows other companies to use the product for a short period of time for a time for which they have bought from the seller. Many companies, including U-Haul and Enterprise, use the model of leasing.

6. Crowdsourcing Model

This type of model involves taking reviews and suggestions from people on social media without hiring them. This helps in the faster growth of their business by following all the suggestions. Wikipedia and Youtube are examples that use this type of model.

7. Product to Service Model

Companies following this type of model when they need any kind of service, instead of buying equipment, tend to ask other companies to make it for them by paying rather than buying the whole equipment. UBER and LIME are some businesses that follow this type of model.

8. One for One Model

This type of model is more of a charitable cause and for a social cause. In this, a company willingly donates one item for every item it purchases. These selfless services encourage and attract customers to buy the product from that company. The model was built by the founder of TOMS, Blake Mycoskie.

9. Manufacturer Model

The manufacturer model is one of the traditional models that manufacture the product from the raw material. Basically, it assembles the parts and makes the whole product by the process of manufacturing.

10. Retailer Model

In a supply chain, the retailer comes at the end. A retailer purchases a product from a distributor then sells it to the customer at a cost that covers its profit margin.


Well, these are the top 10 business model types everyone should know. Before starting any business, it is a must to decide what is your business model and what would be the benefits you would be getting from this model. So, choose wisely.

I hope you found our article “Top 10 Business Model Types” really informative. If in the affirmative, then do offer us feedback. And also please share which business model your company opts for.

For more articles, do refer to the links given below.

  1. Business Ideas With Low Investment And High Profit | Top 6 Low Investment High-Profit Business Ideas Everyone Should Know

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