Help for Applicants

Business Models

Business model types can act as blueprints for companies and quickly communicates what your core strategy of creating revenue is. There are some well known business model types but new ones are created constantly to describe new ways of doing business. Some companies will employ more than one business model (e.g. brick-and-mortar retailer).

Here we explain some of the common ones you might be asked to select during an Innoscout application:

AdvertisingA free product or service is shown alongside advertisement to create revenue.Free online video platforms
CrowdsourcingA company's product or service is generated (or strongly supported) by the users of the product or services of the same company.Wikipedia
Data LicensingCollected, aggregated and processed data is sold for analysis, advertising and other purposes.Weather prediction services
DecentralizedThe product, service or data is not owned by a single entityBlockchain
Pay-as-you-goThe product or service is paid for based on it's usageWeb infrastructure companies, most SaaS companies
Peer to PeerThe product or service facilitates the exchange of information, products or services between one or more users of the product or serviceClassifieds platform, hobby forum
Social EnterpriseThe primary stakeholder of the company is social/environmental impact before financial interests (but can still be for-profit)Examples
AffiliateSells products and services on behalf of another partner company but does not hold inventory (partner company provides product or service directly to the end customer).Dropshipping
AgencyBundles own products and services, with products and services of partner companies to create a full package product or service for customers from a single providerWeb design agencies, App development agencies
AggregatorProvides products or services from partner companies under a unified brand.Taxi hailing apps, Flight search engines
Brick-and-MortarFace-to-face selling of products and services.Hairdressers
DistributorDoes not make a product, but resells the finished product of another company to the end customer or to another company.Car dealerships
eCommerceAnonymous (Not face-to-face) selling of products and services (typically via the world wide web).Web shop
FranchiseLicenses a business model/set of operating practices/branding for use (pays royalties for that usage).International fast food chains
FreemiumA basic version of a product or services is provided free of charge (often as a marketing channel) and profit is generated from other (more valuable) versions of the product or service.Web file sharing services
Low-costBasic product or service is provided as low as possible, but profit is generated through other optional and/or complementary products and service that are not included with the basic product and priced at market or above market rates.Low-cost airlines
ManufacturerMakes a finished product from raw materials, sold directly or through middlemen (e.g. wholesaler, dealer, broker).Car makers
Online MarketplaceProvides references to products or services from partner companies under the partner's brand, but adds complementary services (e.g. rating, delivery, insurance, quality control).One stop web shops (e.g. Amazon)
RetailerDoes not make a product, but resells the finished product of another company to the end customer.Supermarkets
SubscriptionA product or service is provided on a regular basis for a recurring fee.Razor blades for shaving, Meal prep kits