Businesses sell to consumers, which is called B2C, or to businesses called B2B.

Startups aggregate users, create marketplaces or sell services.

Here’s a list of key startup business models to know:

Freemium — the startup gives something for free to build the customer list and then sells premium services to them.

Subscription — the startup finds a needed service and sells it to the customer on a recurring revenue basis.

Marketplace — the startup brings buyers and sellers together in one place and makes money off the transactions.

Fees for service — the startup provides a service, content, or access in exchange for a fee.

Advertising — the startup attracts an audience and sells advertising to those who want to promote their product or service to that audience.

Data monetization — the startup collects data from a group of people or processes and sells that data to others who use it to improve their business.

Razor – razor blade model — the startup sells a product that requires disposable components to use.  

This creates a recurring revenue stream from repeat purchases of the disposable product.

Consider these business models for your startup.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.