5 Examples of Successful Business Models

If you are thinking about starting your own business or making an investment in a project of interest, you should know that one of the first factors to consider to make the best decision is to determine a business model that responds to the needs of the company and of the clients.

However, to determine it, it is essential to start with clear and practical examples of successful business models that demonstrate their functionality in real and competitive environments. Therefore, in this article we will present some of the most representative examples.

What is a business model?

Before delving into the examples of a successful business model, it is important to be clear about its definition: these are the processes, ways and strategies through which a company or business transforms raw materials to turn them into a product or service and the way in which which is sold to the customer. In this way, the company creates value both for itself and for its customers.

Among some of the most interesting types of innovative business models we can mention:

• Long tail model. Offers a wide variety of items with little demand. The large volume of small sales can be a great option for profitability and profit generation.
• Bait and hook model. This model – also known as tied products – offers a basic product at a low price (with losses for the company – bait), but with high prices for an associated product, a spare part or service (bait).
• Membership model. Through this model, some type of reward is established for suppliers or people who attract clients or orders for their products (commissions).
• Multilateral platforms. These include different business models that bring together two or more customer groups, which are different but interdependent. These platforms allow interaction between the two groups, increasing the value and the number of users who use them.
• Franchise model. In this case, the company or business allows other people to exploit its brand or products and services, always under constant supervision. In this way, entrepreneurs or investors exploit a business that is already proven.
• Subscription model. The user pays a subscription to receive a value proposition that compensates the fee paid. It is one of the most used models today.

The time has come to learn about successful business model examples!

Now that we are clear about what a business model is, it is time to learn about the success stories that have marked the contemporary market. Let’s not wait any longer and let’s go for them!

1. Casino games

The business model of online casino games is one of the most popular and attractive for entrepreneurship. These are based on a solid and diversified income model that falls into at least three large areas: deposits and withdrawals (financing of player accounts through various payment methods and incentives to attract new customers – such as deposit bonuses ), commissions and fees and advertising and affiliates (promotion of services on other websites or affiliates).

In the case of physical casinos, franchises are another of the most successful business models. This allows you to expand your presence in different territories, in turn increasing the number of clients and profits.

2. Netflix

Netflix is ​​a great example of a subscription business model, that is, it offers a service in exchange for a monthly charge. This service is complete access to its platform of movies, series, documentaries, among others. Now, for the subscription model to work, Netflix begins by applying a freemium sales model, in which a free trial for one month is offered so that the customer is encouraged and pays the monthly subscription.

3. Airbnb

We continue with the examples of successful business models with the famous case of Airbnb. This model seeks to connect a host with a guest, with the aim of reducing accommodation costs for the latter. Furthermore, by allowing tourists to stay in a local house, it promotes their cultural immersion. For this service, the platform charges a 3% commission to hosts and a 5-15% commission to guests.

Hand in hand with the above, the company partners with hosts to offer accommodation for business travelers, with local people to offer guides in immersive experiences and has a subscription travel magazine.

4. Tesla

Tesla is another of the leading companies in implementing successful business models. Their business model is an improved model, focused on direct sales and complemented by superior customer service. In its model, Tesla eliminates the middleman, driving a better experience for customers by offering its cars in eye-catching showrooms. These rooms are complemented by service centers to charge or repair cars.

Other luxury services offered in this business model include vehicle customization, in-home technical service, remote software troubleshooting, and free and fairly fast charging stations (in just 30 minutes).

5. Apple

We conclude our collection of successful business model examples with the case of Apple. This model has a clear objective: to create loyalty to your brand. To do this, it offers its customers an exclusive ecosystem of products and services, including iPhone, iPad, personal computers, media players, smart watches, among others. It is worth clarifying that the software for these products is only compatible with products of the same brand.

In addition, the company offers other services at an extra cost, such as Apple Music, Apple TV, Apple Cloud, just to mention the most popular.

Read Also: How to Create a Solar Panel Business Plan?

In conclusion, it is important to highlight that when thinking about choosing the right business model for your company, it is necessary to consider the different options and even consider the possibility of including more than one or two, since some of them may complement each other perfectly.

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