Business Model Report

The Advertising model is used when a company sells their users data to advertisers. The more users they have the more money they can charge for adverts. The more data they have of their users they can charge advertisers more money.

The Freemium model is when companies offer basic version of their service and charge to get access to their premium services. They will only give so much for free so that users will still use the service, but they could upgrade to the premium plan for more features.

The Virtual goods model is when companies have microtransactions where users can buy virtual goods with micropayments on a website or a game. Most free to play games will have these as revenue resource for the developers.

The subscription model is when users have to pay a fee to use the service. This payment could be annual, monthly, weekly or daily.

The affiliate model is when the company make money by directing visitors to an affiliated company’s website. The visitors will increase site traffic, generate leads and/or make purchases.

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