An overview of the 10 different business models for generating revenue.

Introduction to Business Models

Exploring the model of giving products away for free and making money through advertising, with YouTube as an example.

Giving Product Away for Free with Advertising

Discussing the freemium model, using LinkedIn as an example, and the concept of upgrading for a cost.

Freemium Model with Pay for Upgrade

Explaining how pricing is based on the average value to the customer, using health insurance as an example.

Pricing Based on Average Value to Customer

Describing the traditional model of pricing based on product cost plus margin.

Price Based on Product Cost Plus Margin

Examining the model of pricing with recurring low subscription payments, with Netflix as an example.

Recurring Low Subscription Payment

Exploring tier pricing based on volume, using real estate as an example.

Tier Pricing Based on Volume

Discussing revenue as a percentage of every transaction, focusing on commission-based models.

Revenue as a Percentage of Every Transaction

Explaining the model of low product price with additional support for an extra cost.

Low Product Price with Extra Support

Describing the model of low entry price with additional priced features, using the example of buying a car.

Low Entry Price with Priced Features Additional

Exploring the model of low price with revenue generated from disposables, using the example of selling razors.

Low Price with Revenue from Disposables

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Every business has a different model of how they make money.

Today we're going to talk about the 10 different business models of how to build your business around.

Alright, before I get into it, if you haven't yet subscribed to the channel, please do so.

These are 10 different business models of how to generate revenue.

There's many ways of doing it, but these are 10 different models.

The first 1 is you give the product away for free.

A lot of times people wonder, why are they giving away the product for free?

Because they make the money on the back end of advertising.

The second model is the freemium model with a pay for upgrade.

LinkedIn is free, but if you want to upgrade, you've got to go and subscribe to a certain cost that they have.

It's an upgrade, $24.95, $49.99, $99.95, but you start off as a freemium.

So business model number 3 is pricing based on average value to customer.

So you've got 5 different customers, right?

Somebody may be a terrible driver, they have a lot of issues.

They average that out and come out with a price point that's average to the customer.

And some may be paying a little bit higher, some may be paying a little bit less, but it is what it is.

Like the health insurance, when it came out recently, they said, well why am I paying so much insurance when I'm younger and I'm healthy?

You're kind of paying for the insurance of the people that are not healthy, but they're getting it.

So it's the average cost for the product they're selling.

Fourth model is price based on product cost plus margin.

You buy these pants for $20, you sell them for $30.

You buy this, you know, whatever product you got for $15, you sell it for $40.

Number 5 is price with recurring low subscription payment.

People say Netflix $799, $999, $1299, that's not a lot of money.

Times 150 million customers, it's a lot of money.

So real estate, how much you buy, how much is your volume, the more you buy, the less we charge you.

If I'm getting a commission contract with an insurance company, if you sell this much policies, we'll give you this much.

But if you sell more, we'll give you more.

The more you do, the more leverage you have for negotiation.

The more you do, the less the cost is going to be to the customer because you're banking on volume.

Number 7 is revenue as a percentage of every transaction.

The revenue comes from a commission base that they're paying out.

Number 8, low product price, but support is extra.

The product isn't that much, but you want the extra support, here's $99 per year.

All that stuff additional that they tag on.

Number 9, low entry price, with priced features additional.

This car right here, I just bought a car and it's being delivered right now.

But if you want to add this, and if you want to add this, and if you get this, it's all the additional add-ons that you have.

And last but not least, number 10 is very simple.

Low price, but Money is made based on disposable.

So I sell this razor stick, and I sell it to you for $10.

But I know you've got to come and buy the razors every time you're done shaving, because it goes from green to white.

It's a very, very big proctor and gamble type of a business model, but it's very effective.

Again, it's all about how you want to set up your business model to generate revenue.

If you want the PDF today, either text me at 310-340-1132 and text me and say, business models.

And we'll text you back the link to the PDF where you can print out and kind of see what kind of a business model you want to create.

And if you're not in the States, you still want to get the PDF to this, click on the link below in the description.

I got 2 other videos I want you to watch that have to do with this topic.

1 of the videos is size versus positioning.

You want to go in the marketplace and compete?

How do you want to differentiate yourself to go up against the bigger companies?

And the other videos for you that's watching that's saying, I'm an employee right now.

And I'm thinking about becoming an entrepreneur.

I'm thinking about becoming an intrapreneur within my company, but I want to get better at it and see what I can do.

This video is titled, How to Become an Entrepreneur.

So If you want size versus position, click on this.

How to become an entrepreneur, click on this video over here.


Speaker 0: Every business has a different model of how they make money. Today we're going to talk about the 10 different business models of how to build your business around. Alright, before I get into it, if you haven't yet subscribed to the channel, please do so. So let's get right into it. These are 10 different business models of how to generate revenue.

There's many ways of doing it, but these are 10 different models. The first 1 is you give the product away for free. A lot of times people wonder, why are they giving away the product for free? Because they make the money on the back end of advertising. Example, YouTube.

Many companies do this. This is 1 of the models. The second model is the freemium model with a pay for upgrade. LinkedIn is free, but if you want to upgrade, you've got to go and subscribe to a certain cost that they have. It's an upgrade, $24.95, $49.99, $99.95, but you start off as a freemium.

So business model number 3 is pricing based on average value to customer. So you've got 5 different customers, right? It may be health insurance. It may be auto insurance. Somebody may be a great driver.

They don't have any issues. Somebody may be a terrible driver, they have a lot of issues. They average that out and come out with a price point that's average to the customer. And some may be paying a little bit higher, some may be paying a little bit less, but it is what it is. Like the health insurance, when it came out recently, they said, well why am I paying so much insurance when I'm younger and I'm healthy?

I don't have any issues. You're kind of paying for the insurance of the people that are not healthy, but they're getting it. So it's the average cost for the product they're selling. Fourth model is price based on product cost plus margin. This is traditional.

You buy these pants for $20, you sell them for $30. You buy this, you know, whatever product you got for $15, you sell it for $40. Number 5 is price with recurring low subscription payment. Hence, Netflix. It's a very common model today.

People say Netflix $799, $999, $1299, that's not a lot of money. Times 150 million customers, it's a lot of money. Number 6 is very basic. Tier pricing based on volume. So real estate, how much you buy, how much is your volume, the more you buy, the less we charge you.

If I'm getting a commission contract with an insurance company, if you sell this much policies, we'll give you this much. But if you sell more, we'll give you more. So it's all volume based. The more you do, the more leverage you have for negotiation. The more you do, the less the cost is going to be to the customer because you're banking on volume.

Number 7 is revenue as a percentage of every transaction. Commission. That's a commission that they're doing. The revenue comes from a commission base that they're paying out. Number 8, low product price, but support is extra.

This is everywhere. The product isn't that much, but you want the extra support, here's $99 per year. $999. All that stuff additional that they tag on. Number 9, low entry price, with priced features additional.

So you're buying a car. This car right here, I just bought a car and it's being delivered right now. But if you want to add this, and if you want to add this, and if you get this, it's all the additional add-ons that you have. That's the additional add-ons. And last but not least, number 10 is very simple.

Low price, but Money is made based on disposable. So I sell this razor stick, and I sell it to you for $10. But I know you've got to come and buy the razors every time you're done shaving, because it goes from green to white. You've got to buy it. I'm making my money on disposable.

It's a very, very big proctor and gamble type of a business model, but it's very effective. Again, it's all about how you want to set up your business model to generate revenue. There's many different ways of doing it. These are 10 of the ways to do it. If you want the PDF today, either text me at 310-340-1132 and text me and say, business models.

And we'll text you back the link to the PDF where you can print out and kind of see what kind of a business model you want to create. And if you're not in the States, you still want to get the PDF to this, click on the link below in the description. Go subscribe to my newsletter. We'll also send you the PDF to this. I got 2 other videos I want you to watch that have to do with this topic.

1 of the videos is size versus positioning. You want to go in the marketplace and compete? What do you want to compete with? Who do you want to compete with? How do you want to differentiate yourself to go up against the bigger companies?

That's what this video is about. And the other videos for you that's watching that's saying, I'm an employee right now. And I'm thinking about becoming an entrepreneur. Or I'm an employee right now. I'm thinking about becoming an intrapreneur within my company, but I want to get better at it and see what I can do.

This video is titled, How to Become an Entrepreneur. So If you want size versus position, click on this. How to become an entrepreneur, click on this video over here. And again, if you

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10 Business Models for Every Entrepreneur