Business Model Navigator (EN).pdf
In this article you will find an overview of more than 50 business models, or earning models. As you can see below, different models are used over time and more and more are added.
Especially the freemium model and the subscription form are used more and more nowadays. These are explained in more detail below the image.
With the Freemium model, the service is given away for free. Free, of course, is never really free. In many cases, only a limited service is free and you still have to pay if you want to use the entire service. Often the basic service is so undressed that it actually doesn’t help you. Another form is the free use of the service in exchange for data. The money is earned from that data; often to be able to sell targeted advertising or, in health care for example, to be able to perform better analyzes and diagnoses. The money is then earned by bringing new treatment methods or medicines to the market.
In the past you only had a subscription to the newspaper and the train, nowadays we are increasingly tempted to take out subscriptions: on driving a car, a bicycle, using software, using a washing machine at home, etc. In healthcare subscriptions are also taken out. For example, for regularly scanning and analyzing spots on the skin. These subscriptions provide a constant, certain stream of income for service providers. This is precisely why this business model is so popular. This goes hand in hand with a decreasing need of customers for ownership and a need to pay only for use. However, many customers do not value too many subscriptions (-3). They lose the overview. It is also often the case that providers with the subscription model start supplying directly to the end customer and thereby offend their current partners (-3).
Another business model that fits in with ‘just paying for use’ is paying ‘per tick’. Due to the digital services it has become very easy to pay for digital use. There is then automatically paid monthly or directly.