Common Types of Businesses

What is an advantage of e-commerce business model?

• High capital to purchase stocks

• Must look pretty to sell

• Get to sell for volume, and sell faster online

• No need to keep stocks

What is a primary disadvantage of the Direct Sales model?

• Lower corporate guidelines
• Red tape-free environment
• Personal relationship building
• Strict marketing restrictions

What is a common advantage of the Subscription Model?

• Lower customer lifetime value (CLTV)
• Recurring revenue
• Static customer engagement
• No need for continuous addition of new materials

What is a potential challenge in the Agency Model?

• Clear client expectations
• Unclear client expectations
• No need for boundaries
• Low reliance on team collaboration

How are consultancies typically compensated?

• Fixed monthly fees
• Percentage share of successful projects
• One-time project fees
• Hourly rates

What distinguishes a Social Enterprise Model from others?

• Sole focus on profit
• Separate missions for social and profit goals
• No focus on social impact
• Exclusive focus on charity

What is a characteristic of the Coaching Model?

• Strict corporate guidelines
• 1-on-1 sessions to help clients achieve goals
• Subscription-based services
• Large group coaching sessions

Why is the Online Education Model considered passive income?

• Requires constant updates
• Involves direct coaching
• High competition
• Update materials once a year

What is a characteristic of the Multi-Sided Platform Model?

• Low network effect
• Low capital requirement
• Independence from capital investment
• Capital-intensive for technology components

Which business model often involves connecting buyers and sellers as an intermediary?

• Subscription Model
• Consultancy Model
• Online Multi-Sided Platform Model
• Social Enterprise Model