4 Main Business Models

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To uncover the concept of "value chain", we should consider the main business models known today. This approach will allow us to better understand this complex topic. A business model as a concept for conducting commercial activities describes the way a specific company makes a profit. Let's consider the main schemes used by enterprises in modern conditions.

Buy-sell
This model is based on the sale of a product (goods or services). Here, in addition to simple resale, there may be added value obtained as a result of additional work, for example, assembling bahamas mobile phone numbers database a finished product from parts received from several suppliers.

This approach can be applied to both goods and services. After the purchase and sale transaction is completed, the consumer in this case becomes the owner of the product. The company's income structure will include revenues from one-time sales of products or services to end customers. This model is the oldest business concept, to which all others are ultimately reduced.

Advertising platform
Internet platforms, social networks, media, free video hosting sites (for example, YouTube) and TV channels, as well as other resources that provide free (gratis) content, receive income from their customers (advertisers) for displaying advertisements.

Advertising platform

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The volume of revenues under this business model is determined by the number of visitors to the site in question. The income structure includes payments from advertisers for displaying marketing materials and conversion activity (applications, telephone calls, clicks on online ads, etc.).

Rental, lending and subscription services
With this business model, income is generated from payments by end customers for the temporary use of the product. This could be the purchase of a membership to a fitness club, rights to watch movies, rent for an apartment or office, tools, equipment, accessories, etc.

The same business model is used by cloud service providers that provide storage space, access to software or IT infrastructure. Lending can be thought of as leasing financial resources with payment in the form of an interest rate on the loan amount. The income of such a business is formed from transaction payments for a subscription or license to use. The buyer pays for the right to one-time or multiple access to the product in order to use it without obtaining ownership rights.