Business Models Vocabulary

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A business model used by companies who provide their services for free, and sell advertising space to fund their businesses.

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Advertisement model

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A popular e-commerce relationship where an online merchant agrees to pay an affiliate (promoter) in exchange for providing an advertisement and link to the merchant's site. Examples include Pay-Per-Click (PPC), Pay-Per-Lead (PPL), and Pay-Per-Sale (PPS).

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Affiliate Marketing model

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A business model where the company earns a fee for handling certain business activities for other companies, like advertising and digital marketing, and various other services.

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Agency model

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A business model that collects (aggregates) information on goods and/or services from competing sources, and collects a fee or commission per transaction for selling the aggregated products through its own platform.

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Aggregator model

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A business model where the auction house takes a commission for facilitating the buying and selling of goods or services by taking bids and then selling the item to the highest bidder.

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Auction model

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Blockchain is an unchangeable, decentralized, digital ledger. It is a digital database that no one owns but anyone can contribute to. Blockchain based models aren't owned or monitored by a single entity. Instead, they work on peer-to-peer interactions and record everything on a digital decentralized ledger.

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Blockchain

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A business model that companies use to provide a way for their customers to buy products at their bricks-and-mortar stores and also online.

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Bricks-and-Clicks model

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A business model with traditional physical street-side locations, like a local bank or hardware store.

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Bricks-and-Mortar model

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How a company sells its products to customers and it’s plan for making a profit.

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Business Model

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Crowdfunding collects small amounts of capital from a large number of individuals to finance a new business venture or various other needs or projects.

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Crowdfunding model