Frameworks

Common Frameworks

Most companies will fall into one of these categories: 

1. Direct Sales: Companies sell products or services directly to customers, either through physical stores or online platforms. Examples include brick-and-mortar retail stores and e-commerce websites.

2. Subscription: Businesses charge customers a recurring fee for access to a product or service. Examples include Netflix (streaming services), Spotify (music streaming), and software-as-a-service (SaaS) platforms like Salesforce and Adobe Creative Cloud.

3. Advertising: Companies generate revenue by selling advertising space or promoting sponsored content to businesses looking to reach their target audience. Examples include media platforms like Google, Facebook, and traditional TV and radio stations.

4. Freemium: This model offers basic features of a product or service for free while charging for premium features or functionality. Examples include mobile apps and software platforms like Slack, Zoom, or LinkedIn.

5. Affiliate Marketing: Companies earn commissions by promoting other businesses' products or services, typically through an affiliate network. Examples include Amazon Associates and various blogs or websites that promote products and receive a percentage of sales.

6. Marketplace: A platform that connects buyers and sellers, facilitating transactions and often charging a fee for the service. Examples include Amazon, eBay, Airbnb, and Uber.

7. Licensing: Companies grant other businesses the right to use their intellectual property (IP) in exchange for a fee or royalty. Examples include patent licensing in the technology sector or franchise agreements in the fast-food industry.

8. Razor-and-Blades: Companies sell a primary product at a low price (or give it away) and generate revenue from the sales of consumables or accessories. Examples include printer manufacturers (e.g., HP, Canon) selling ink cartridges or gaming console manufacturers selling video games.

9. Product-as-a-Service: Companies provide access to a product as a service, often with a subscription or usage-based pricing model. Examples include Zipcar (car-sharing services) and Rent the Runway (renting designer clothing).

10. Business-to-Business (B2B): Companies sell products or services to other businesses. Examples include software vendors, manufacturers, and wholesalers.

11. Business-to-Consumer (B2C): Companies sell products or services directly to individual consumers. Examples include retail stores, e-commerce platforms, and online services like streaming platforms.