What is Business Model?
The specific way a business makes money.
A business model is simply how you make money: what you sell, to whom, and how you charge. Subscriptions, one-time sales, advertising, marketplaces, freemium — each is a different model with different math.
Two companies in the same industry can have wildly different fates based purely on model. Selling software once is a fine business; selling it as a monthly subscription is a fortune.
Before obsessing over features, get the model right: who pays, how much, how often, and why it's worth it to them.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.