12 most successful types of business models (Part 2)

The 1st part is here.

P2P

Two individuals produce goods and services directly with each other, without an intermediary 3rd party.

The host company provides a place and opportunity for interaction (particularly an online database and communication service) that brings participants together. People can post rental ads, offer goods and services, share information or impressions.

The peer to peer movement is rooted in the early internet in the ’90s and has given birth to countless protocols and applications that redefined our way of consuming entertainment. Collaborative consumption influenced the process partly.

Online auction eBay is one of the innovative companies. It provides people all over the world with the opportunity to bid on unnecessary items. There are about 12 million auctions on eBay every day.

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Innovative companies

• eBay (1995)
• Craigslist (1996)
• Napster (1999)
• Couchsurfing (2003)
• LinkedIn (2003)
• Skype (2003)
• Zopa (2005)
• SlideShare (2006)
• Twitter (2006)
• Dropbox (2007)
• Airbnb (2008)
• TaskRabbit (2008)
• RelayRides (2010)
• Gidsy (2011)

Rent Instead of Buy

The customer doesn’t buy a product, but instead rents it. That helps him to avoid some major expenses. The company benefits from much bigger revenue from each product. Customers benefit from the lack of initial cost and the opportunity to use products they would otherwise not be able to afford. It gives clients significant fiskal space. This strategy is much more conducive to increasing in sales than buying the whole product immediately.

Innovative companies

• Saunders System (1916)
• Xerox (1959)
• Block-buster (1985)
• Rent a Bike (1987)
• Mobility Carshar-ing (1997)
• MachineryLink (2000)
• CWS-boco (2001)
• Luxusbabe (2006)
• Flexpetz (2007)
• Car2Go(2008)

This patteoptionrn is widespread. If your offers are at a fixed price, then you might want to consider renting. Renting can help to maintain your flexibility and lifestyle. Basically, if you choose this option, then you will keep up with the increasingly popular trend —

people want to use things, but they don’t want to own them.

Auction Model

In a nutshell, it means selling a product or service to the highest bidder. The final price is determined not only by a seller, buyers actively influence final product price that is achieved when a particular end time of the auction is reached or when no higher offers are received. This allows the company to sell at the highest price acceptable to the customer. The customer benefits from the opportunity to influence the price of a product.

Innovative companies

• eBay (1995)
• Winebid (1996)
• Priceline (1997)
• Google (1998)
• Elance (2006)
• Zopa (2005)
• MyHammer (2005)

Extra flexibility and ample scope of applying this option make it attractive and prospective.

Fractional Ownership

It describes the sharing of a certain asset split between a group of owners (shareholders). All of these owners split the benefits of the asset, such as income sharing, reduced rates, and usage rights. It is a common investment structure for expensive assets.

An important advantage of this option: assets owned by several shareholders are managed much more efficiently than when they are owned by one person.

Perspectives on public goods and property rights are a fundamental part of communist theory and philosophy.

Innovative companies

• Hapimag (1963)
• Netjets (1964)
• Mobility Carsharing (1997)
• écurie25 (2005)
• HomeBuy (2009)

Subscription business model

The Subscription business model allows customers to have an ongoing asses to a product or service. The company sign the contract with the client, which specified the frequency and duration of the provision of services. Customers pay for services either in advance or at regular intervals, usually monthly or annually. Subscriptions are appreciated by customers because they keep their minds clear from purchases of selected products or services, which saves both time and money. Besides, the subscription cost is usually lower than the total cost of individual products or services.

To ensure that the subscriptions remain attractive over time, it’s imperative customers to benefit from such a system without feeling cheated.

Innovative companies:

• Blacksocks (1999)
• Netflix (1999)
• Salesforce (1999)
• Jamba (2004)
• Spotify (2006)
• Next Issue Media (2011)
• Dollar Shave Club (2012)