Connect with us

Business

4 Business Models Proven Most Effective

There are many business models that any prospective entrepreneur can adopt, but not all of them are proven to be effective and capable of generating significant revenue. As an entrepreneur, your goal should be to use a business model that will grow and thrive over time. However long you head the company before you turn it over to new hands and regardless of the circumstances, you want what you have made to stand the test of time.

Any business model you choose should be focused on how to solve a problem or satisfy a market more effectively than whatever product or service is currently available, or barring that, more cheaply. With that in mind, the following business models have been proven to be considerably profitable and experiencing sustained growth.

Bid in Internet

Reverse Auction Type Business Model

When Priceline started this business model, most business experts and industry leaders thought it a joke. Fast-forward a few years and the model has grown by leaps and bounds.

In this model, buyers get to choose how much they want to pay for services or products. If the provider or merchant is comfortable with the price listed by the buyer, they’ll include terms and conditions that the customer/buyer has to agree with before they can sell to them.

This is why Priceline is currently one of the leading accommodation, car rental and airline ticketing brokers in the world. Consumers love using Priceline because it offers convenience, ease-of-use, and affordability, all within a short time frame. And so far, the company is making a killing by recording 50% profit growth.

Create a Virtual Marketplace for Sellers and Buyers

No company has mastered this like eBay has. The company created the world’s largest auction website and populated it with millions of buyers and sellers. And the company continues to wax strong because of the strict user guidelines, transparency and tough criticisms.

This has the effect of encouraging most buyers and sellers to be well-behaved. And the integration of Paypal into the business as the payment option of choice has further made it difficult for fraud to happen nowadays –although that was a problem in the past.

So, with a tough rating system, an in-house payment platform, and millions of products available for auction through the bidding or buy-it-now process, eBay has gone on to become a household name.

Sell Tons of Merchandise at the Lowest Prices Possible

This is simply the idea behind Amazon’s business model. As the world’s largest online marketplace, Amazon has expanded from simply selling books to selling all kinds of merchandise.

They created a system where they could get the lowest prices from suppliers, deliver the products in record time and eliminate unnecessary baggage, thus ensuring that customer satisfaction grew to almost 100%.

These, plus the addition of a review system where buyers can detail their experience with the products they bought have made Amazon one of the world’s largest onlinecompanies. That has resulted in a 27% year-on-year growth over the last decade.

Provide an Online Task Management Platform for Businesses

Managing tasks in business can be pretty difficult when you have to manage many workers, and it’s not always possible to directly interface with every element yourself. Instead, try creating an easy-to-use platform that provides you with a bird’s eye view of pending and completed tasks, payroll management options, and collaboration tools. In this way, you can address time management and productivity concerns with the same efficiency you come to expect from your reports.This is exactly the gap that Scoro fills with its project management software, providing an integrated platform for generalized and tailor-made solutions.

While there are many more models, we outlined these business models so that you can get a broad perspective of models that have shown consistent growth and profits over time –we’re talking at least ten years. Smart entrepreneurs can take these models and tweak them to better suit their businesses.

Oscar King is a small business operator and freelance writer who shares his experience and opinions on the business world and current events through articles and editorials.

Recent Posts

Are You Covered? Tips For Finding Affordable Health Insurance For Your Whole Family Are You Covered? Tips For Finding Affordable Health Insurance For Your Whole Family
Lifestyle1 day ago

Are You Covered? Tips For Finding Affordable Health Insurance For Your Whole Family

If you are in the market for health insurance, you may be overwhelmed by the many different features and the...

How to Prevent Potential Hazards In A Lab How to Prevent Potential Hazards In A Lab
General3 days ago

How to Prevent Potential Hazards In A Lab

Unfortunately, lab accidents can happen. When they do, the consequences can be very serious. Some of the most common lab...

How to Extend Your UK Spouse Visa How to Extend Your UK Spouse Visa
Travel3 weeks ago

How to Extend Your UK Spouse Visa

The UK spouse visa is also known as a UK marriage visa. The UK spouse visa allows married partners of...

How Best Is Automation Helping The Retail Industry to Survive? How Best Is Automation Helping The Retail Industry to Survive?
Business4 weeks ago

How Best Is Automation Helping The Retail Industry to Survive?

“In the post Covid-19 world, the only place cos are willing to invest is in automation. The return on investment...

Best Artificial Intelligence Trends to Watch Out In 2021 Best Artificial Intelligence Trends to Watch Out In 2021
Tech1 month ago

Best Artificial Intelligence Trends to Watch Out In 2021

Technologies are getting advanced day by day, and according to that, the developers and the mobile app development companies should...

Keeping Your Assets Safe — Crypto Insurance May Soon Become The Norm Keeping Your Assets Safe — Crypto Insurance May Soon Become The Norm
Markets & Finance1 month ago

Keeping Your Assets Safe — Crypto Insurance May Soon Become The Norm

Many people all over the world have compared the cryptocurrency market to the wild West, largely because of the fact...

Which VPN Is Best For The Windows 10? Which VPN Is Best For The Windows 10?
Tech1 month ago

Which VPN Is Best For The Windows 10?

VPN is necessary whether you are doing personal or professional activities. Fully secure VPN for the Windows 10 are hard...

How to Deal With Aching Muscles After Exercise How to Deal With Aching Muscles After Exercise
Health1 month ago

How to Deal With Aching Muscles After Exercise

Suffering from aching muscles and joints after exercise can be very common in many of us. Especially if you have...

How Can A Divorce Lawyer Help You Get Through Divorce? How Can A Divorce Lawyer Help You Get Through Divorce?
Law1 month ago

How Can A Divorce Lawyer Help You Get Through Divorce?

Hiring a divorce lawyer can help you cope with more than just legal problems during your divorce. They can help...

Can I Open A Robinhood Account For My Child? Can I Open A Robinhood Account For My Child?
Markets & Finance1 month ago

Can I Open A Robinhood Account For My Child?

Your children are the topmost priority for you. What best you can do for your kid is to provide them...

Elevating Your Writing Skills With These Simple Steps Elevating Your Writing Skills With These Simple Steps
Education2 months ago

Elevating Your Writing Skills With These Simple Steps

Writing skills are an essential part of communication and is not something that naturally comes from within. You have to...

When to Replace Your Car’s Tires and How to See The Warning Signs When to Replace Your Car’s Tires and How to See The Warning Signs
Autos2 months ago

When to Replace Your Car’s Tires and How to See The Warning Signs

Trying to get by with tires that may be long past their prime can lead to many problems. Worn tires...

4 Reasons Why Your Small Business Should Hire An SEO Company 4 Reasons Why Your Small Business Should Hire An SEO Company
Business2 months ago

4 Reasons Why Your Small Business Should Hire An SEO Company

Starting a small business is a very noble endeavor. It takes a lot of courage to step away from the...

What Effects Would Artificial Intelligence Have on the Future of Digital Marketing? What Effects Would Artificial Intelligence Have on the Future of Digital Marketing?
Tech2 months ago

What Effects Would Artificial Intelligence Have on the Future of Digital Marketing?

In the past few years, the wave of technology has drastically transformed digital marketing. From connecting with people to working...

Best Affiliate Marketing Software Of 2021 Best Affiliate Marketing Software Of 2021
Business2 months ago

Best Affiliate Marketing Software Of 2021

The best affiliate marketing software makes earning advertising revenue from your website quick and convenient. The next challenge is to...

Categories

Archives

Trending