3. Reverse Auction Model for startup business
The reverse auction is a type of model where the buyers exchange roles with the sellers. Buyers who care about the price give bids to the seller for service. Once the seller accepts the proposal, the buyer complies with the terms and conditions of the seller. Sellers benefit from market access, although consumers feel like they have a great deal.
One of the prime examples of the reverse auction has to be Priceline. Travelers give up luxury on plane tickets, rentals, and other travel accommodations at low prices. Priceline offers its B2C marketplace with a win-win market and has seen strong sales growth because of that. Other example includes companies like Stayful, FedBid, MyHammer, and Squeezify.
This model is a winning model for both buyers and sellers. Here’s why: Buyer’s with targeted price wins because they feel good about the deal. The company gains by facilitating the transaction with its suppliers. Sellers obtain access to a marketplace and make an inventory profit.
4. Freemium Model for Startup Business
This startup business model has been a success story for many companies. Offering both free and premium (paid) services has been working for the tech giants.
Let us explain more: A company provides essential services to its consumers for free while charging for their premium services. The premium services vary companies to companies but supplying advanced features and other perks are mostly the case.