A business model is a framework businesses use to capture value. It may be considered the root strategy of a business that includes the basics of creating valuable products and services and selling them for a profit. Business models are rare as it is common for thousands of businesses to have the same model. For example, thousands of businesses are manufacturers, service providers, financial intermediaries, value added resellers, wholesalers or retailers.

The following are examples of business models.

Bricks and Clicks
A retailer who sells products both on the internet and in physical stores. The stores may serve as product showrooms, customer service centers and delivery points.

Good Business
A business that has a well defined set of ethics that are a primary concern. Customers who identify with the ethics of the business may become loyal supporters. In many cases, good businesses try to have a positive impact on the environment and the communities in which they do business or source their products.

Complementary Goods
A product or service that compliments something offered by another business. An example, is a protective case for a mobile device.

Distributor
A business that buys a product in bulk to resell. The distributor may take care of the details of importing, warehousing and marketing that represents a service to retailers.

DTC Sales
Product or service without a physical location sold directly to customers. The lack of a physical location means a lower cost base that makes direct sales highly competitive on price to build advantages.

Value Added Reseller
A value added reseller sells something that is available elsewhere but adds something to it such as additional features or support. For example, a software vendor may sell freely available open source products backed up by implementation and maintenance support. RedHat does this for billions.

Systems Integrator
A systems integrator is a service that takes different components and makes them work together. It is a common business model in the software industry where systems integration is much of the work of implementing new software.

Freemium
Offering a free version of a product or service that requires payment for side purchases, special features, additional content or removal of limitations. Mostly used to gather lead data for marketing.

Franchising
Franchising is a technique that attempts to scale a business model that works in one location to new locations or markets.

Pay What You Want
Asking users of a service to pay for a service but not specifying an amount. Often used by charity events.

Monopoly
A monopoly is a dominant business that has no real competition in an industry, allowing the business to charge high prices or impose demanding terms on their customers.

Razor And Blades
Selling a product that needs additional products in order to provide something that is needed to operate it. The classic examples are printers and ink, razors and blades or mobile devices and apps.

Auctioneering
Providing buyers and sellers with an auction for a commission on each sale. Think Ebay.

No Frills
A business that competes on price by cutting “added frills” features or services commonly offered by their competitors.

Service Management
A business that offers to manage something for a fee. For example, a telecom company may offer managed services such as unified communications with a service agreement.

One Stop Shop
A location or service that offers a number of products and services in one location. The idea is to save the customer time by allowing them to complete a number of purchases quickly. A common example is a well managed convenience store or online marketplace.

Collective Business System
A collective business system pools the resources of multiple businesses for mutual benefit.

Consumer Collective
A consumer collective pools the purchasing power of its members to negotiate better prices or terms with sellers.

Agent
An agent acts on behalf of someone else. This usually means a specialized professional who represents a buyer, seller or talent in negotiations or sales.

Manufacturing Services
Provides custom manufacturing services based on product specifications, often referred to as contract manufacturing.

Design Services
Developing a design based on customer specifications. Examples include web design or product design.

Industrialization
Industrialization is the process of taking something that is produced at a small scale and producing it on a much larger scale. This tends to reduce prices and improve quality. Industrialization can also have disadvantages in negative social and environmental impacts on communities.

Mass Customization
Mass customization is a product or service that can be highly customized by buyers but is produced at scale. It is an alternative to industrialization, that produces products that are all pretty much the same.

Unlimited Service
A service that has no caps or limits that’s offered for a flat fee. Think… a streaming music service.

Owner Operator
A small business that owns equipment that it offers as a service.

Store-within-a-store
A retailer who allows another retailer to operate on premises in return for a percentage of sales or rent. The arrangement is typically made amongst complementary goods such as bookstores and coffee shops.

Utility
A utility offers something on demand such as electricity, water or computing power. Utilities tend to have high capital costs and offer an undifferentiated service that is fully commoditized. However, some are natural monopolies that have no real competition.

Traditional Craft
The traditional craftsperson is an unusual business model who keeps a tradition alive and in that most businesses must change rapidly to survive. The traditional craftsperson may do the opposite, strive to keep alive old ways. This strategy can work because people are often in a hurry to abandon a fading industry but demand may last longer than expected or even rebound with time.

Club Goods
Club goods are attractions such as a theme park that provide public access to significant assets for a fee.