Get to know the 9 most widely used startup business models

Startups in general, the business model that is run is more in the nature of providing services to consumers. Not a product that can be directly enjoyed such as clothing or food. Consumers will use the services of these startup providers to get what they need in their daily lives.

Start-up is a business that is just running and applies technological innovations, internet, web or other things that are still in the realm, to run its core business and solve a problem in society. The business also has a disruptive nature in an existing market/industry or even creates a new industry. The term startup can also be interpreted as a new company that is being developed. 

After knowing what a startup is, there are characteristics in a company that can indeed be categorized as a startup. Some of these characteristics include:

  • The company has an income of less than $100,000 per year
  • The age of the company is less than 3 years
  • The number of employees is less than 20 people
  • The company is still in the developing stage
  • Generally the company operates through a website
  • The company operates in the field of technology
  • The products produced are in the form of digital application

Some of the above characteristics seem to be more inclined towards companies engaged in the web and technology. Of the many business models currently available, there are 9 business models for startups that are worth trying. Here’s the explanation.

Freemium

This one model  combines two words: free and premium.worksystem adapted to provide basic services for free is one of their efforts. But when customers want to get better service, then the fees or tariffs appear.

On-Demand 

This business model is quite sustainable  because the needs of the community continue to increase. Costs can also be reduced, because the infrastructure is already available. Startups just need to find ways to develop their products.

Customized Items 

creativity that is owned is a selling point at this startup, they will provide the basic products from the brand that are needed. Furthermore, it will be able to be customized by consumers, of course the tariffs of many different products will be sold at different prices as well.

Marketplace

You only need to provide a place to bring together sellers and buyers. In general, this business model is divided into two categories. Namely a Business-to-Business (B2B) marketplace that targets fellow entrepreneurs and sells products on a large scale.

Then there is the Business-to-Consumer (C2C) or Business-to-Consumer (B2C) marketplace which provides an opportunity for producers or sellers to meet directly with buyers.

E-Commerce

Usingthis model, sellers will immediately receive profits from the products they sell on their sites, although some startups are still struggling to use it. Mainly done by startups that have limited capital or in a way that doesn’t require large exit costs.

Affiliate

The affiliate model is also one of the favorites for startups. The income obtained from this one model can exceed that obtained from advertising, by relying on links provided by parties who assist in product marketing. For every product sold via the existing link, the producer will give a commission according to the agreement at the beginning.

Pay-Per-Use

This business is quite interesting to do because it offers something different. Consumers only pay at a rate that is adjusted to what they use within a certain period of time. As long as the products offered are still needed in the community, of course they will continue to be sought. 

Subscribe

This business model is usually used by those who provide interesting content. Such as ebooks, digital magazines, streaming music, and movies. This startup model is exemplified as a digital magazine, customers can only access it when they have paid a set fee, generally the rate given by it will be cheaper than buying a printed version of the magazine.

Software as A Service (SaaS)

This business model for startups is suitable to be marketed to entrepreneurs, not individuals, because the services offered such as software rental services are widely used by entrepreneurs. Services provided with free features, if you want to get the full version of course you have to subscribe and pay according to the price you want to set

Conclusion 

Business models for startups are indeed very diverse. From the simple to the quite complicated. But basically, all startup businesses can run well if you really enjoy doing it. When you enjoy doing it, then creativity will usually appear more easily. So that startups can develop and survive from increasingly fierce competition.

You can start designing and trying to start building your own startup, whether it’s with on-demand, pay-pre-us, affiliate and other business models. All of these types are good, it’s just that you can focus on where the business model is comfortable for you to start, be serious about starting it. Because not all startups that are built can run with 90 percent success at the beginning of their pioneering, so you need strong sincerity.

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