The strategy lies in its ability to be a marketing tool for the service that helps start-ups grow early by gaining a user base without expensive ad campaigns. These models also appear to be more effective than free 30-day trials and other such deals.
Clients are more relaxed because they are using it for free. Not to mention that ‘no strings attached’ feeling comes with when agreeing to make a purchase. Some of the best examples are LinkedIn, Hulu, Dropbox, Amazon Prime, Netflix, and so many others.
5. Startup business On-Demand Model
Consumers today are lured towards instant gratification. They want more convenience, speed, and simplicity in every product and service—this very much has to do with the usage of smartphones. These shiny devices have transformed the way we consume goods and services—every order is just a click away.
There are plenty of startups that offered taxi services, handyman services, or delivering food of your choice on your doorstep. The on-demand model simply finds its way for greater convenience. Not only that, but it is also cost-effective, scalable, and more efficient than ever.
The on-demand model simply enables start-ups to take advantage of emerging technologies by leveraging existing infrastructure. Some of the best examples are Ola, Uber, Zommato, Swiggy, Taskrabbit, Urban Company, etc.
You might be all set to hit the launch button for your big and innovative startup idea. But how will you survive without proper execution, more so, without a master business model? That is why we tried to arrange the list.
These business models have been working for many startup companies but have their merits and pitfalls also. Some of them will require a significant investment to grow and scale the company, while the business model likes freemium works best for B2C products. Therefore, picking up the right business model, according to the startup type, is crucial.
With that in mind, we hope that the information and examples presented in this article will help you to take control of your startup business.
And before you Go!
Online courses from our library. These are the industry-leading training programs that will set the ball rolling for startups.