Add-On Model

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Description: With the Add-On Model you have a core product or service that is priced near cost or very competitively. There are additional features that are priced at a premium that are also available, which can be bought with the core product or service. Customers then choose which features they want along with the core offering….

Affiliation Model

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Description: With the Affiliation Model a company provides some sort of promotional benefit to other companies selling products or services. The company derives value for providing this benefit by receiving compensation for each sale or display. The companies selling the products gain the benefit of a larger and more diverse marketplace in which to sell their…

Aikido Model

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Description: With the Aikido Model a company intentionally provides products and services opposed to  mainstream and general products in the same category. The company is seen as an outsider which draws attention from those customers who have a preference for those types of products and services. The company derives value by being a recognized niche…

Auction Model

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Description: With the Auction Model you have a product or service for which people bid to become the customer. The person who bids the highest becomes the customer. With a Reverse Auction Model it works the opposite way. Companies bid for a customer with the lowest price offered to the customer being the chosen vendor….

Barter Model

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Description: With the Barter Model a company provides a good or service in exchange for something of value besides money. What the consumer provides can be of value to the organization itself or it can be sold to another company for monetary compensation. With the Barter Model, companies derive value through the use or sale…

Cash Machine Model

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Description: With the Cash Machine Model a company uses the monetary liquidity that occurs from the time a customer makes a purchase to the time the company has to pay the supplier of the item purchased. The company uses this liquidity to invest money, pay down debts, expand, etc. It can do this as an…

Cross Selling Model

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Description: With the Cross Selling Model a company utilizes it’s capabilities and resources to add previously excluded products and services to it’s offerings. The relatively low cost of adapting the company to sell these products and services is outweighed by the revenues generated by their addition. The company derives value with this model by generating…

Crowdfunding Model

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Description: With the Crowdfunding model a company proposes an idea for a product, project, etc to crowds of potential investors in hopes of raising enough capital to fund it. If successful the company then rewards investors with benefits, often depending on the amount invested. The company derives value by being able to raise capital without surrendering…

Crowdsourcing Model

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Description: With Crowdsourcing a company provides a problem or task to a crowd of potential contributors, some of whom develop solutions or accomplish the task. Successful contributors are rewarded with prizes or incentives. Companies derive value from the variety of value added contributions, which may exceed that of internal teams. Contributors derive value from their emotional…

Customer Loyalty Model

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Description: With the Customer Loyalty Model a company incentives customers to remain with them through the provision of value beyond the products or services sold to that customer. The stronger the incentive the more likely the customer is to remain with the company. The company derives value for providing these incentives through the continued patronage of…

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