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Solid Business Models for your Business Idea

Subscription, freemium, e-commerce, SaaS, crowdsourcing, peer to peer… Learn about the advantages of these models to generate income.

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DIFFERENT SIDES

They are those in which, at least, you have two absolutely different user segments, but they need to be related. “This is very typical – explains the expert in business creation Javier Megías – of the companies that manufacture video game consoles. It is thought that the default client of these companies that make consoles is the general public, but the reality is that they have two: on the one hand, the general public, and on the other, the video game developers, which is where they earn a lot of money . But for videogame developers to want to get into a new video game console, they have to have a large audience.”

Megías points out that one of the fun things about this model is that there is always a deadly block when going to work in the market: “As I do not have experience, they do not hire me and I will not gain experience because they do not hire me. So, the entrepreneur has to make some subsidy plan to attract one of the two sides.”

FREEMIUM

It is a derivation of two or more sides, where one of the sides – a huge user base – receives a free product and / or service continuously (free). These are subsidized by a small user base -between 1 and 3%, depending on the market- that are paying for an additional service (premium). In that sense, the need is to have a very large volume of users to be able to attack with security. In this type of business models, the entrepreneur’s obsession must be to grow.

LONG TAIL

It is Amazon’s model par excellence. “They are businesses, like freemium, that require a lot of volume because the important part of sales is not generated by what everyone buys, but with many things that are seldom sold. That forces you to have a wide catalog. This is the case of Aceros de Hispania, which has developed a huge catalog related to steel knives and utensils, which does not sell much of them all every month, but with which it sells five of each. it allows you to generate a very important billing “, explains Megías.

BAIT & HOOK

This model was born by the hand of blade manufacturer Gillette. “He decided to give the soldiers who went to war razors. He hooked them with the razors and the business is in the sale of blades, which are expensive. Something similar do mobile operators: they give you the phone and then charge you for the services. Or the business of coffee capsules. The interesting thing in this model is to generate recurring business, “says Megías.

CLOUD AND SOFTWARE-AS-A-SERVICE (SAAS)

This model is purely online and comes to offer a new approach to companies that develop applications. For Megías, “SaaS allows companies to pay for applications as if they were a service. The key is to define what the collection criterion is. If for this you are going to use the number of users, that is, if you have 100 users you will pay X and if you have 50 you will pay, half of X. It will allow you to adapt to each situation and each time a new functionality comes out, I am going to pass without cost and you can evolve as well as customer. It’s a business model that is based on resegment a niche.”

SUBSCRIPTION MODEL

They are those in which the user pays periodically because he perceives an important value. It is a recurring customer, which allows having recurring income, as well as a contact with the customer. In this way, you know when the client is leaving, why he is leaving and what you have to do to keep him.

PEER TO PEER

It is a reinvention of the classic P2P that we knew of downloads of movies and music -based on sharing the contents that individuals had on their computer. Now you give it a spin and it consists of sharing services. They are business models such as Airbnb, a platform where individuals rent spaces they have in their homes (rooms and beds). It is to flatten the model of the rooms for renting rooms, but each one with the ones you have in your house. These models are proliferating thanks to the fact that people have been gaining confidence and security on the Internet to do business with other individuals. Until recently it was the companies that did it and now it is the private individuals who do business with others offering services.

Everything that has to do with services offered by people to other people has many business opportunities, where the ultimate goal would be barter, although this has not worked yet in Intern

And because it is very difficult to cross supply and demand.

SPECIAL SALE ELECTRONIC COMMERCE

All those business models related to the outlet on line, the groups or the live shooping, which are the ones that have obtained the most financing and the ones that are most billing. This type of business has added to traditional sales an important component of compulsive buying based on marketing strategies focused on offer, access to exclusive products, etc. That is the model of many online outlet, coupon companies and some other sectors. They are models where new things are being done. There are many possibilities in everything that has to do with mobile marketing, geolocation and business locally.

CO-CREATION OR CROWDSOURCING

It is a model that is being used a lot. It consists of the creation of value -to provide a service or solve a problem posed- through the contributions of a large community, mainly professionals in a sector, although it is also being opened to individuals. The advantages of this model in terms of cost savings are very interesting.

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