"The Business Model Navigator," the authors present 55 patterns as a source of inspiration for business model innovation. An overview of some key patterns:
1. Add-on: Offer a core product at a low price and generate additional revenue through complementary products or services (e.g., printers and ink cartridges).
2. Affiliation: Earn commissions by promoting and selling other companies' products or services (e.g., affiliate marketing programs).
3. Crowdfunding: Raise funds for a project or business from a large number of people, typically through an online platform (e.g., Kickstarter).
4. Direct Selling: Bypass traditional retail channels and sell products directly to customers (e.g., Tupperware).
5. Experience Selling: Create unique and memorable experiences for customers as the primary value proposition (e.g., theme parks, and escape rooms).
6. Flat rate: Offer unlimited access to a product or service for a fixed price (e.g., subscription services like Netflix).
7. Freemium: Provide a basic version of a product or service for free, with the option to upgrade to a premium version for additional features or benefits (e.g., Spotify).
8. Franchising: Allow entrepreneurs to use a company's brand, business model, and support in exchange for a fee and ongoing royalties (e.g., McDonald's).
9. Leasing: Generate revenue by renting out assets instead of selling them outright (e.g., car leasing).
10. Long tail: Cater to a large number of niche markets rather than focusing solely on mass-market products or services (e.g., Amazon).
11. Low-cost: Offer products or services at a lower price than competitors by reducing costs and operating more efficiently (e.g., low-cost airlines).
12. Mass customization: Combine mass production with customization to offer personalized products at a large scale (e.g., Nike's custom sneakers).
13. Pay-per-use: Charge customers based on their actual usage of a product or service (e.g., Zipcar).
14. Razor and blade: Sell a core product at a low price or even a loss, and generate profits from consumables or complementary products (e.g., Gillette razors and blades).
15. Subscription: Charge a recurring fee for ongoing access to a product or service (e.g., software as a service like Adobe Creative Cloud).
Rahul Talluri
@rahul_prodx
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