Subscription based business model
Posted: Wed Jan 22, 2025 4:32 am
Subscription based business model
The business makes money through regular access purchases by customers. For example, when a person pays for a phone or rents a house. This model is often used by software developers who offer their products as a service (SaaS). However, there is a problem here: if customers switch to competitors or start using another product, the business owner will face numerous contract terminations.
Affiliate Marketing
In this case, the client is investor database provided not only with services, but also with an additional opportunity to become a member of the affiliate program for a commission fee. Justdial (an Indian search engine) is a shining example of this model. This company connects clients who want to get information about hotels to several service providers. Justdial, of course, takes its commission for this.
Multi-level marketing
This model involves elevating the client to the status of a seller. Bright examples are Amway and Tupperware. Buyers are divided into several levels. Those clients who manage to attract a large number of people to the company receive a good reward. The problem with multi-level marketing is that many consumers do not like the fact that they are being used for commercial purposes.
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Cross-marketing: 5 examples and 8 mistakes
9 Types of Customer Loyalty Programs
Absolutely Free Internet Advertising: 19 Options
Business planning
Developing a business plan is a crucial stage that allows you to determine the direction of the enterprise's development. With the help of this document, the company can avoid some risks and identify the best ways to achieve its goals. In addition, the plan is used to evaluate the entrepreneurial initiative. It specifies all the stages of starting a business.
The business plan must reflect the following information:
general and local goals of the project;
number of potential buyers of goods/services;
methods of attracting the target audience;
the most important indicators of enterprise performance;
the amount of initial investment and investments that will be required in the first year of project implementation;
expected revenue volume.
You can develop a business plan yourself, without involving experts. This way you will save money. You will need to study statistics and some other data. It is best to work in accordance with the recommendations of specialists or select ready-made templates on the Internet. In this case, you need to try to adapt them to the specifics of your project.
Financial reward as an external motivation
The business makes money through regular access purchases by customers. For example, when a person pays for a phone or rents a house. This model is often used by software developers who offer their products as a service (SaaS). However, there is a problem here: if customers switch to competitors or start using another product, the business owner will face numerous contract terminations.
Affiliate Marketing
In this case, the client is investor database provided not only with services, but also with an additional opportunity to become a member of the affiliate program for a commission fee. Justdial (an Indian search engine) is a shining example of this model. This company connects clients who want to get information about hotels to several service providers. Justdial, of course, takes its commission for this.
Multi-level marketing
This model involves elevating the client to the status of a seller. Bright examples are Amway and Tupperware. Buyers are divided into several levels. Those clients who manage to attract a large number of people to the company receive a good reward. The problem with multi-level marketing is that many consumers do not like the fact that they are being used for commercial purposes.
Recommended articles on this topic:
Cross-marketing: 5 examples and 8 mistakes
9 Types of Customer Loyalty Programs
Absolutely Free Internet Advertising: 19 Options
Business planning
Developing a business plan is a crucial stage that allows you to determine the direction of the enterprise's development. With the help of this document, the company can avoid some risks and identify the best ways to achieve its goals. In addition, the plan is used to evaluate the entrepreneurial initiative. It specifies all the stages of starting a business.
The business plan must reflect the following information:
general and local goals of the project;
number of potential buyers of goods/services;
methods of attracting the target audience;
the most important indicators of enterprise performance;
the amount of initial investment and investments that will be required in the first year of project implementation;
expected revenue volume.
You can develop a business plan yourself, without involving experts. This way you will save money. You will need to study statistics and some other data. It is best to work in accordance with the recommendations of specialists or select ready-made templates on the Internet. In this case, you need to try to adapt them to the specifics of your project.
Financial reward as an external motivation