Business Model Patterns

Software-as-a-Service

Salesforce.com, Dropbox, Slack

Software-as-a-Service

A delivery model in which software is licensed and centrally hosted (vs. hosted by the customer)

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Hardware-as-a-Service

Hilti, Philips, Citibike, Vivint

Hardware-as-a-Service

Give access to hardware along with software, maintenance, installation, and upgrades

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Data-as-a-Service

Bloomberg, Climate Corp, Socrata

Data-as-a-Service

Data, data management, or analytics as a core underlying asset

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Pay-Per-Use or Usage

AWS, Sigtuple, Philips PACS

Pay-Per-Use

Use of a product or service is metered, and customers are charged each time they use the service

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Freemium Service

Candy Crush, LinkedIn, Trello

Freemium

Key features made available to customers for free, specific features delivered for a fee

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Two-Sided Marketplace

Uber, Airbnb, Upwork, Ebay, Etsy

Two-Sided Marketplace

A platform for economic exchange between two distinct user groups

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Subscription Service

Birchbox, Netflix The NY Times

Subscription

Customers sign up for periodic access to a product or service

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Direct-to-Consumer

Caspar, Everlane, Warby Parker

Direct-to-Consumer

Using digital marketing and merchandizing to build a direct relationship with the consumer

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Razor Razorblade

Gillette, Nespresso, Swiller

Razorblade

The core product is priced for sale and uptake, while more money is made on the consumable

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Professional Services

Cooley, McKinsey, Omnicom

Professional Services

A group of expert or skilled consultants that delivers advice, expertise, and/or solutions

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Advertising-Supported

CNN, Facebook, Hearst

Advertising

Firms attract an audience and then sell access to advertisers

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Which Model is Next?

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Which is Next?

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