Different Types of Business Models

All businesses are derived from a business model. Businesses need to select the right business model to ensure that they are able to be profitable. Business models focus on a few different business aspects. Have a look at the most popular business models and decide what type is right for your up and coming business. 1. Direct Sales A direct selling model is basically a company which enables products and provides them to consumers via retail outlets or online markets. There is definitely no middle man in this type of business model. This normally means that the business will be more profitable. A well-known example of a direct selling model is Dell. They manufacture and sell their own products in both retailers and online. 2. Franchise A franchise model uses name brand awareness of the franchisor to help the franchisee to be more rewarding. When businesses choose the business model, there is really no requirement for major companies to get outlets in order to promote their products or services. Instead, the franchisee pays to look at up the business under the name of the franchisor. It can be basically like opening up a store that has a number of restrictions that are established by the franchisor. 3. Circulation A distribution model is actually a business in which distributors buy products from the producer in order to sell them in their retail stores. While they can sell the products made by different manufacturers, they are not required to operate under the Continue reading Different Types of Business Models