For every other service that comes with it, a certain amount is charged. This is one of the most common business models on the Internet.
For example, the basic version of Dropbox comes with 2 GB storage.
If you want to increase that limit, you can move to the Pro plan and pay a premium of $9.99 a month for it.
Affiliate marketing business model is a commission-based model where the affiliate builds its business around promoting a partner’s product and directs all its efforts to convince its followers and users to buy the same.
In return, the affiliate gets a commission for every sale referred.
With the advent of the internet, there has been an increase in the amount of data generated upon the users’ activities over the internet.
This has led to the advent of a new business model – the data licencing business model.Some online image editors allow you to edit only a certain number of images in the free basic plan while an unlimited number of images in the paid plan.Youtube’s free plan comes with ads while the premium (Red) plan has no ad interruption plus it has other benefits too.This model is one of the most adopted models for online companies because it is not only a great marketing tool but also a cost-effective way to scale up and attract new users.If customer acquisition costs are high, this business model might be the most suitable option. Online marketplaces aggregate different sellers into one platform who then compete with each other to provide the same product/service at competitive prices.So there will be multiple plans with various benefits for different customers.Generally, the basic service comes with certain restrictions or limitations, such as in-app advertisements, storage restrictions etc., which the premium plans shall not have.All the business processes and policies that a company adopts and follows are part of the business model.According to management guru Peter Drucker: Thus a business model is a description of the rationale of how a company creates, delivers and captures value for itself as well as the customer.The widespread use of business models came into existence with the advent of the personal computer which let people test and model the different components of a business.Successful business models before that were mostly created by accident and not by design.