A model based on
buying products from
manufacturers and
resells them to retailers
or the public.
A person or business
that sells products
directly to the public
either from a store or
a website
TYPES OF
BUSINESS MODELS
Source:
Introduction to Business
Heidi M. Neck, Ph.D.
Christopher P. Neck, Ph. D.
Emma L. Murray, BA, H. Dip
Looking for more Introduction to Business content to share with your students?
Visit sagepub.com/intro-business.
The process whereby
franchises are sold by an
existing business to allow
another party to trade
under the name of that
business
FRANCHISING
The amount of revenue
generated by charging
customers payment to
gain continuous access
to a product or service
SUBSCRIPTION
The process which
generates revenue by
advertising products
and services.
ADVERTISING
A model whereby the
company connects
vendors and buyers on
the same platform and
sells its services under
its own brand.
The amount of revenue
generated by charging
customers fees on the
basis of how often goods
or services are used
The amount of
revenue generated by
providing professional
services on a time and
materials contract
AGGREGATOR
UTILITY AND
USAGE
PROFESSIONAL
The revenue generated
by selling or licensing
high-quality, exclusive,
valuable information to
other parties.
A way of earning revenue
by giving permission
to other parties to use
protected intellectual
property (copyrights,
patents, and trademarks)
in exchange for fees.
A distribution model in
which companies offer their
applications, software and
platforms to customers over
the Internet
The amount of revenue
gained by mixing free
(mainly web-based)
basic services with
premium or upgraded
services
SOFTWARE AS A
SERVICE
(
SAAS
)
FREEMIUM
DISTRIBUTOR
RETAILER
DATA LICENSING/
SELLING
LICENSING
