Business Models Vocabulary

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.

• Agency model

• Freemium model

• Subscription model

• Direct sales model

A business model where the distributor buys products from manufacturers and resells them either to wholesalers, retailers or the public.

• Distributor model

• Manufacturer model

• Retailer model

• Wholesaler model

A business model that allows a person or small business, called the “Franchisee”, to start a business by legally using a (usually well established) company’s (Franchisor’s) brand, expertise, practices, and established business and operational systems and processes.

• Franchise model

• Partnership model

• Sole proprietorship

• Cooperative model

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).

• Affiliate Marketing model

• Influencer Marketing model

• Drop Shipping model

• E-commerce Reselling model

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.

What is the term that describes this technology?

• Blockchain

• Cryptocurrency

• Distributed Ledger Technology

• Smart Contracts

The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people, especially from the online community.

• Crowdsourcing model

• Freemium model

• Subscription model

• Affiliate marketing

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

• Bricks-and-Mortar model

• E-commerce model

• Franchise model

• Dropshipping model

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.

• Auction model

• Retail model

• Subscription model

• Freemium model

A business model where the merchant sells products from its web store but doesn’t keep an inventory or handle the fulfillment and shipping of the product; rather, it purchases the product from a third party as soon as the customer makes a purchase, and requires the third party to ship to the customer directly.

• Dropshipping model

• Wholesale model

• Retail model

• Subscription model

A business model provides low price points for the cost-sensitive consumer, also often called Low Cost Providers.

• Nickel-and-Dime model

• Premium Pricing model

• Value-Added model

• Freemium model