Business to Business (B2B) Model – Nine Startup Business Models post.
Here’s the Slideshare presentation –
Are you looking for a Financial Model Template for these Business Models? Go here.
- B2B Commerce – Example Grainger
- Grainger is a wholesale supply company with a $15B market cap. This ordering site shifted the expense of ordering from their counter to the customer.
- Subscription – Example Salesforce.com – detailed post
- There are so many great examples now of B2B subscriptions; I wanted to highlight one of the frontrunners in Salesforce. One of the things they did that was masterful was recruited sales people directly (cheap for 5 users or less) who would then expense it back to their company.
- Search – Example Google
- Google’s model on search wasn’t original (at least according to Yahoo’s lawsuit). The Pay Per Click (PPC) model was the monetization option for search results.
- Advertising – Example Facebook
- Facebook delivers consumer eyeballs for advertisers. You’ll need at least 1M uniques a month to your site to monetize this way however.
- Productize a Service – Example MOZ – detailed post
- Services business (Consulting) usually generates 35%+ Gross Margin. Given that pull of profit $, very few companies make the shift from services company to product company.
- Marketplace – Example Alibaba
- Nearly everyone has used eBay or similar. Alibaba’s IPO and global presence is what people know it for in 2015. But this marketplace was founded in 1999.
- Transaction Fees – Example Square
- Square launched with a replacement for credit cards like PayPal and take a percentage of every transaction as their payment. They’ve since expanded into Point of Sales (POS) services.
- Lead Generation – Example Mint
- Consumers are the product to whom Lead Generation companies are selling. They are a business that sells other businesses (consumer) leads. They are paid for the lead, not a transaction. Sometimes this is a great customer experience like Mint, but with others, like Insurance, it’s a bad customer experience.
- Combination – Example Uber
- Uber is a business that created a marketplace that innovated around transaction fees (the driver doesn’t control the price like an eBay seller).
I’ve listed a few other business models that don’t make the list, given the criteria of viable models at launch – vs. scale.
- Big Data – Example PatientsLikeMe
- This is a great business model but will require capital to get to a scale point where you will have enough data to monetize the data. I’d also include the sensor market or Internet of Things (IoT) market in this category.
- Panels – Example Toluna
- Surveys of precise groups that can be used as market research is a unique business model, that again requires a level of scale.
- Multi-sided Marketplaces – Example Etsy
- Like the general marketplace model, you have to build product first into the model. In a multisided marketplace you’ve increased your complexity which will again require time.
- Nonprofit – Example Startup Weekend