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20 Types of Business Models to Generate Revenue

Business Models

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October 1, 2020

Business Models to Generate Revenue – Business Model Innovation is of utmost important nowadays. Business model innovation in the company does not come from creatives. It comes from understanding other business models and learning from them. Business model innovation can help you to reach the next level in the business. You can generate more revenue from your business and grow big. The real-life examples of business model innovation are Google & Amazon. Google & Amazon are continuously innovating learning from the market and making a change in the business model.

Well who don’t want to grow big like Google & Amazon? Of Course Everyone. So, let’s try to learn from business models of some of the big companies who are already in the business and generating big revenue.

Also Read – 100 Business Ideas with low investment

I am sure you must be excited about this. So, fasten your seat belt, and let’s start our journey to the next destination of business models (new blog category). In the business models category, I am going to share business models insights and case studies about few popular businesses.

What is Business Model?

A business model in layman word is a plan by which the company is going to operate and generate revenue from the business. A business model means the basis of how business creates, delivers, capture value. It is very important for the sustainability and growth of the business.

Sounds Complicated? Let’s simplify!

Create – Create a Unique Value Proposition for a customer. You need to understand your customers and their problems and design or propose products, service or solutions to create a continuous revenue stream.

Capture – Delight the customer and capture value from customers in return. Design the right strategy for relationship management & customer retention.

Deliver – Deliver value to your customer via solution. Customers should believe in your product or service. You can do it via various methods such as the utility of a product, warranty, etc.

In short, you can design a business model by answering the following questions

How product or services will be created/manufactured or procured?
How sales and distribution of product service will take place?
How new & loyal customers will be added?
How customer will pay you?
How company will make money?

You can make use of ABCDE formula for creating a business model.

A – Analysis

B – Brainstorming

C – Creating

D – Delivering

E – Evaluating

20 Types of Business Models to Generate Revenue

Here is detail about 20 types of business models that can help you in starting and growing your business.

#1 Manufacturer

Manufacturing is a well-known business model. The person involved in this type of business is known as a manufacturer. Manufacture makes products from raw materials. The product can be to make or ready to sell. A manufacturer can sell a product to the customer directly without a middleman.

Examples – L&T, General Electrics, 3M etc.

#2 Distributor

A distribution ship is another popular business model. A person who has taken the distributorship of a product/company is known as a distributor. A distributor purchase product from the manufacturer in the bulk and sell it to the retailer or customers.

Examples – Ingram Micro, Redington

#3 Retailer

A retailer business is very simple. Retail procure products from the distributor and sell it to the customer directly.

Examples – D-Mart, Amazon

#4 Franchise

A franchise is a branch under the parent brand name. It is a very good and proven business model. A franchise can use parent’s products/services and brand everything under the parent’s name by paying royalties to it.

Examples – McDonald, Dominos

#5 Brick-and-Mortar

Brick-and-Mortar is a traditional business model. Under the brick-and-mortar model, products and services are offered to a customer’s face to face at a specific location.

Example – Local provision shop

#6 e-Commerce

e-Commerce is a popular online business model. In this business model, products and services are offered to the customer online. The rest of the thing in this model is similar to brick-and-mortar.

Examples – Flipkart & Amazon.

#7 Brick and click

Brick and click is a business model adopted by many people. It is an online-offline business model. This means the company offers products online as well as offline in the store.

#8 Freemium

Freemium is a popular and effective business model. In this model sample product is given to the customer for a shorter period on free usage. It is also known as sampling. The product can be given to all customers or selected customers. The intent is a long-term association or sale of the product.

Examples – Free Test Drive of car to the customer before buying a car.

#9 Subscription

Subscription is the most suitable model where the cost of customer acquisition is very high. If you want long-term customer association, you can use this model. It is a recurring revenue generation model.

Example – Amazon Prime, Netflix

#10 Hidden Revenue Business Model

The hidden revenue business model is a business model where the free product is offered and revenue is generated from the advertisement. This model is adopted by most of the online companies.

Example – Google, Facebook

#11 Razor and Blade

In this business model product is very low cost but support charges or other associated item charges are very high. You cannot run a primary product without extra item or support. An example is a printer. The printer is onetime expense (low) but you need a cartridge (associated item) to run the printer.

Example – HP Printer, Razor & Blade

#12 Aggregator

An aggregator is a low capital investment high-profit margin business model. It is an asset-light model. In this model aggregator act as a bridge between asset owners and customers. Ola & Uber are examples of aggregator business model. Ola and Uber do not own any car yet they make big money by becoming a bridge between asset owners and customers. This model is also reefer as two-way model.

Example – Airbnb,Ola,Uber

#13 Affiliate Marketing

Under affiliate marketing, company makes money by featuring or reviewing other company’s products. It is like get payment for saying something good about company products or marketing for them.

Example – NerdWallet

#14 Network Marketing

Network Marketing is an old and popular business model. It is a pyramid model business. The recruitment of new members by promising them rewards is a key principle of this model. Every new member can also recruit another member. The network keeps growing.

Example – Amway

#16 Reverse Auction Based business model

A Reverse Auction is a popular business model for selling products. In this model price of the product is kept high and the auction is done. In auction bidder offer price and price drop take place. The lowest bid supplier will get a chance of business.

#17 On Demand

On demand is an access-based business model. In this model products or services are offered on demand. An example could be renting a car, renting a room by the hotel, etc.

#18 SAAS, IAAS, PAAS

Software as service, Infrastructure as service, and platform as service are examples of the IT industry business model. Here software, platform, and infrastructure are offered on rent.

Example – Dropbox, Mailchimp, Zendesk, Windows Azure

#19 Online Education business model

This model is specifically focused on the students. In this model online education platform is provided for the student along with digital content for learning. This could be fix fee or subscription model.

Example – LinkedIn learning, BYJU

#20 Multi Brand business model

Multi brand business model is based on the marketing of multiple similar and competing products together. Under a single brand, multiple products with the same function are maintained and grown.

Example – Hindustan Unilever, P&G

Over to you

I hope you have got complete understanding of Business Model & how company grow and make money.

Share this post on Facebook and Twitter. Help your friend to understand concept of business model.

Make Money on Instagram – 7 Powerful & Proven Ways

Money & Wealth

Shitanshu Kapadia

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September 27, 2020

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Make Money on Instagram – Instagram is one of the most popular social networking sites. Instagram has 112.5 million users all over. The count of Instagram users is growing and is expected to surpass 125 million counts by 2022. Data shows that the Instagram user spends around 53 minutes daily on the Instagram site. The growing usage of Instagram has opened up a door to making money.

Instagram is now acting as a powerful marketing tool for many businesses. Many businesses are using this app to increase product reach with the help of social media influencers. Social media influencers are earning more than $3000 per month. You can also become a social media influencer and make money on Instagram.

Mastering the game of how to make money using Instagram is full of benefits. This can help you elevate your online presence, and translate your passion into income. Once you learn how to monetize your Instagram pressence, you can build authentic connections and create a dazzling digital lifestyle.

No matter if you have thousands of followers or you are new at Instagram if you have hunger you can make money on Instagram. Here is a list of 7 Most Powerful & Proven Ways to Make Money on Instagram.

Before taking a look at the money-making ideas let’s take a look at how to start your journey on Instagram.

Also Read – How to make money via youtube, facebook, twitter

1 Open Instagram Account

The first step is to open the Instagram account. You require an email ID to create an account on Instagram. You need to provide basic information while opening an account. If you have already open Instagram account you can skip this step.

2 Decide your niche

Once your account is open next step would be deciding the topic. On which topic you will be posting content. Make sure to select a niche where you have expertise. A few popular niches on Instagram are lifestyle, luxury, beauty, fashion, etc.

3 Follow Consistency

The next step is to follow the consistency. You have to maintain consistency in posting content. It is advisable to post one story per day. If you remain inactive for a few days/months you will not able to grow fan following. The brand usually collaborates with an influencer who is active.

4 Post Useful & Highly Engaging Content

Make sure to post useful and relevant content. The content and image posted by you should be informative. If possible make use of Infographic. The chance of Infographic going viral is very high compared to other images. Use free tools and websites available for the creation of Infographic.

5 Make use of hashtags

It is advisable to use a hashtag. Hashtags help to index the content faster. Hashtags are used to find posts/content. You should use the most popular hashtag. You can find out detail about popular hashtags on the internet.

6 Include contact information in your bio

You should include your concise and effective bio including the e-mail address. You can include your blog/website in your biodata to show your area of interest. If you have already promoted some brands you can include case study or information about the same. It is a good idea to mention that you are a content creator or social media influencer.

7 Grow Instagram Followers

By now you should be able to see growth in your Instagram followers. You can interact with followers and show your presence to grow your Instagram fan following. A good social influencer has around 1000+ followers.

Of course, you could always spend a little money to potentially earn more in the long run. For instance, you can buy Instagram followers with high retention to further boost your online visibility and gain initial traction. However, it’s important to choose reliable services to ensure the followers you gain are both authentic and engaged. This is just one way in which you can organically expand your following and, in turn, enhance your influence and reach on social media.

7 Powerful & Proven Ways to make money on Instagram

I am sure by now you have got a complete idea of the creation of an Instagram account and increasing fan/followers. The next step would be making money from your Instagram account.

#1 Post Sponsored Content

A most popular method to make money via Instagram is via posting a sponsored content. There are many small and big brands opt for post sponsored content service. If you have more than 1000 followers and you consistently post in your niche, a good brand may get in touch with you.

You can also approach a good brand by contacting them via an e-mail address. If you have difficulty in getting the contact of brands you can use an influencer marketing platform. Some of the popular influencer platforms are –

#2 Affiliate Marketing

Affiliate marketing is one of the easiest ways to make money on Instagram. In affiliate marketing, you will get a short link uniquely generated for you. This link is for the product which you want to promote. You need to promote this link on your account. If someone purchases a product by clicking on the link, you will get a commission. There are many affiliate marketing websites that pay a very good commission. Few examples are –

Amazon
Vcommission

#3 Create Online Store

You can also create your online store and earn money. However, you need to focus more on creativity and marketing. You may require to spend money at the initial stage. Many influencers are using this method to earn money from Instagram.

#4 Sell your own products

Creating your own product and selling it is next on the list. You can create your own customized products such as t-shirts, posters, e-books, handicrafts, handmade products online. You need to create your own website and promote links on Instagram account for earning money.

#5 Sell Photos

Good photographers use this idea to earn money from Instagram. If you are good at clicking photos you can sell it online and earn a lot of money. You can start with a high megapixel mobile for clicking photos. Once your business grows you can purchase a high-end camera. Many advertisement companies purchase unique photographs for using it in the advertisements.

#6 Become Brand Ambassador

Becoming a brand ambassador is like a dream come true. This idea works once you have more than 10000+ subscribers. You should have a good audience and a highly engaging rate on Instagram. Many small and big brands now hire brand ambassadors like you to promote their products online.

#7 Selling your Instagram Account

You may be surprised to hear that you can sell your Instagram account and make money. For many people, it is like a business. In this way, you need to create multiple Instagram account to increase your fan following by posting engaging content. There are many websites that help you in selling your Instagram account. One such website is Insta-sale.com

Over to you

I know it is hard to make money from the Instagram account at the initial stage, but it is not impossible. If you have passion and skills, you can become an influencer and earn a lot of money. So, what are you waiting for? Use the legitimate and powerful ways mentioned above to earn from Instagram.

Nominee NPS – How to change nominee in NPS online?

Personal Finance

Shitanshu Kapadia

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September 22, 2020

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Nominee NPS – How to change nominee in NPS online?

Now you can change nominee of NPS account online!

Changing nominee for the NPS account was a difficult job earlier. The subscriber was required to visit NPS POP physically and submit the form for nominee change called as S2 Form. Now this entire process is online. You can change the nominee online with a click of a button. The entire facility is e-sign and OTP based.

Here is step by step guide to change add and update nominee detail in the NPS account.

Nominee NPS – How to change Nominee in NPS Online?

Subscribers need to follow the steps given below to change nomination in NPS online.

#1 Visit CRA NSDL website to access your NPS account. Log in using your PRAN number and Password. If you don’t know how to register and open NPS account you can go through my previous article – How to open NPS account online?

#2 After login you will be able to see the navigation menu. From the navigation menu click on the option ‘Update Personal Details’ under ‘Demographic changes’ menu.

#3 Once you click on this menu you will able to see “Subscriber Modification” screen. Under subscriber modification, you will be able to see the following options

Upload Photo and Signature
Opt for Email Annual Transaction Statement
Add/Update Permanent Account Number (PRAN) Form-60
Add/Update Nominee details
eSign Download (Nomination Modification)

#4 Kindly select Add/Update Nomination details. You will be prompted with a message –

The Nominee details update functionality requires OTP authentication. You need to ensure that your updated mobile number is registered with CRA and UIDAI (Aadhaar service provider) for OTP authorization. The process of nominee details will be completed after successful eSign and submitting the OTP. Please confirm, if you want to proceed further to Update/Add Nominee details.

Now select the Tier Type for which nomination details need to be updated.

#5 Once you select the Tier Type you will be taken up to a new page called as Nomination detail. The Image screenshot is given below.

#6 You will be able to see the current nominee detail. If you wish to change nominee you need to input new nominee details such as Name, Major/Minor, Date of birth, Relationship, Percentage Share and address. After inputting details press “Save” button.

#7 Once details are saved and confirmed you need to submit One Time Password (OTP) received on your registered mobile number. It is mandatory to register your mobile number with CRA.

#8 Once you submit One Time Password. You are required to e-Sign to authenticate changes done by you. Click on ‘e-sign and download’. You can also add multiple nominations.

#9 Now you will be taken to a new page of e-signature where you need to e-sign by entering your Aadhaar/Virtual ID. After entering you need to click on ‘send OTP’. You will get OTP on the Aadhaar registered mobile number.

#10 Enter OTP received on your mobile number and click on Verify OTP. After verification, the nomination details will be updated in NPS records. In case your access is under the category of Government/Identified Corporate sector, the authorization is required by the associate nodal office/corporate for updating records.

The entire process given above is paperless and does not require any physical visit to CRA POP. You can do the entire process online with a click of a button.

NPS Nomination rules

Nomination rules set for the NPS account are given below.

If the subscriber has family at the time of updating the nominee, the nomination is mandatory in the favor of family members. One or more people from the family can be assigned as a nominee. The total nomination percentage should be 100%. Any nomination made in favor of a non-family member stands invalid.
On the marriage of the subscriber, the fresh nomination is required to be made. Any nomination made before marriage in this case stands invalid.
If the subscriber has no family member at the time of updating/applying for a change in nomination, he/she can nominate any person as a nominee. However, if a subscriber becomes part of any family at a later stage old nomination becomes invalid. The subscriber is required to add fresh nomination in the favor of one more person from his/her family.
If a nomination is made in the favor of minor (child) full or partial, the subscriber can appoint major person of family as guardian. If no major person present in the family, the subscriber may appoint any other persona as guardian of minor nominee.
Nomination made in the NPS account can be changed/updated at any time by the subscriber.

Family Members in case of male subscriber means –

Legally wedded wife
Children Married or Unmarried
Dependent Parents
Deceased son widow and children

Family Members in case of female subscriber means –

Legally wedded husband
Children Married or Unmarried
Dependent Parents
Husband Dependent Parents
Deceased son widow and children

In any of the above cases, if the child of a subscriber is adopted by another person by law (adoption is legally recognized) the child shall be considered as excluded from the family of the subscriber.

Over to You

It is very easy to change the nominee in the NPS account online. The entire hassle of changing nomination physically is eliminated. The complete process is online and nominee modification add/remove/change can be done with a click of a button completely paperless.

If you have not changed/added nominee in NPS account, you should follow the steps given above to change the nominee in NPS.

How to Increase Business? – 5 Powerful Sales Techniques

Skills & Productivity

Shitanshu Kapadia

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September 19, 2020

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How to Increase Business? – 5 Powerful Sales Techniques

I am running a small business. Nowadays facing a lot of difficulties in the business. Kindly advice what to do? How to Increase Business?

This question was recently asked to me by one of the blog readers.

Well, it is a known fact that we are going through a bad phase. Almost every business is going down. For many people, it is a problem of survival. If you are in the same boat where your business is down and you want to increase your business & sales. You are at the right place. In this post, I am going to share 5 Powerful Sales Techniques. These techniques are proven and adopted by most of the successful businessmen. I am sure you will be able to bounce back in your business if you adopt these techniques.

How to Increase Business? – 5 Powerful Sales Techniques

#1 Make the customer hero

The first sales technique is simple yet very effective. In this technique, your customer is your hero. If you want your customer to buy from you, tell their story not your story. In the story make sure you are solving a customer problem and making him/her hero.

Please understand the customer’s behavior before selling a product. Customer does not buy a product that places themselves as the hero in the story. They buy a product in which the customer is hero and the problem of the customer is getting solved by the product. In other word sell the solution show the benefits to the customer.

Let’s try to understand this by practical example. – You might have seen the advertisement of WhiteHat Junior. Every campaign of WhiteHat Junior Kid is projected as a hero with a surprise element that your Kid can make App in small age also.

The second Example is an insurance agent. If you want to sell an insurance policy, don’t project the insurance policy (product) as the hero. Keep your customer as a hero and tell him/her story. In story telling tell the benefit of the product and how it can sell customer’s problem. It is like in every movie hero struggle with a problem and a wise mentor understands that problem and solves it. In this case, you need to show your customer that how an insurance policy can change their financial conditions in the future and they can live a better life.

Also Read – 250 Small Business Ideas with Low Investment

#2 Relationship & Trust based sales technique

The second important and most powerful sales technique is the relationship & trust-based sales technique. This technique says that creates a customer by making them a friend. Try to establish a relationship with the customer. Relationships and trust will always help to close sales.

Let’s understand this by practical example. Whenever I visit the nearby store the store person tries to welcome me by taking my name. He tries to give me importance. It is like creating a personal relationship with human aspects. This is to establish a trust to increase the sale. More Trust means more sales.

It is very simple people buy a product from the person to whom they trust. The second example could be a barbershop or salon. In 99% cases, we visit the same barber or hairdresser. The simple reason could be we trust them. They know our preferences like hairstyle. What we like don’t like etc.

It is like think relationship not transaction. Your relation with a customer would be more personalized rather than a business relation. Once you do that you will be able to establish trust with a customer. More trust more transactions. Less trust no transaction or fewer transactions.

#3 Begin with Urgent Problem

The third sales technique is don’t solve the customer’s problem try to solve the urgent problem of the customer. If you want to find good customers try to find a person who is surrounded by problems. This model is also known as AIDA model. Attention, Interest, Desire, Action.

Attention – Find out the urgent problem of the customer and get customer’s attention.
Interest – Create interest in your product
Desire – Showcase benefits and generate desire
Action – Customer will take action and buy a product from you.

Another way of understanding this technique is by ARC.

A – Ask the problem of the customer
R – Recommend product solution for selling
C – Close the deal

#4 Dream Selling

Dream selling is one of the most powerful sales technique adopted by many people. In this technique, you need to sell a dream to sell your product. As we know everyone like a dream and they will be ready to spend money on the dream.

For example, you must have seen an advertisement of hair oil where they say – पाये 10 दिन में लम्बे, घने और चमकदार बाल. It is like dream selling only. It is impossible to have this type of hair in 10 days with hair oil. Another example like this is fairness cream where they said – क्रीम जो दिलाये तुरंत गोरेपन का एहसास

You must have seen the KBC advertisement. In KBC advertisement they do dream selling to increase viewership.

So dream selling is one of the powerful sales techniques that can be tried to increase business.

#5 Freemium or Sample-based sales technique

The last powerful sales technique is Freemium or sample-based sales technique. The alternative name of this technique is the experiential approach. In this technique experience of a product is given to the customer. It can be in terms of free demo, test drive, sample.

The richest person in India Mukesh Ambani has used this technique to gain customers for Jio. Jio Mobile SIM card was given as a free card with a free internet connection for the few months to gain customer confidence. Recently when Jio Fiber is launched trial is given for 1 month to attract the new customers.

Another example could be Fair & Lovely. Fair & Lovely sample pack of 15gm is sold @20Rs. A similar Fair & Lovely pack of 25gm is sold @60 Rs. This means once customer gains experience you can increase the product price and increase business.

Over to you

I hope the sales technique disclosed above with practical examples will help you in increasing your business. If you know any other powerful sales techniques which are not listed above, please share it in the comment section below. Please let me know which technique you like from above.