10 Startup Business Models That Work

Why reinvent the wheel? here are 10 Startup Business Models That Work, And Investors Love.

1/10 Freemium business model — 10 startup business models that work

Here you allow users to utilize basic features of a software, game, or service for “free”, and then charge for “upgrades” to the basic package.

2/10 Subscription business model

It is based on the idea of selling a product or service to receive monthly or yearly recurring subscription revenue.

3/10 Pay-as-you-go business model

This is a pricing strategy where users pay based on how much they consume.

4/10 Marketplace business model

A marketplace is a type of e-commerce site where product or service information is provided by third-party sellers and the company take a cut from the transaction(15%-25%).

5/10 Fee-for-service (FFS) business model – 10 startup business models that work

FFS’s business model is based on charging customers a fixed and variable fee for every successful payment.

6/10 Transactional business model

The revenue is generated by directly selling an item or a service to a customer.

7/10 Ad-based business model

Used by social media and search engine giants which use your search engine and interest data to show ads.

8/10 Hidden revenue business model

Job portals can make money by charging an upgrade both from the candidate and recruiter who is on the website.

9/10 Franchisee business model

Here the franchisee(local owner) is using the trademark, branding, and business model of a franchisor(company).


In this type of business model, one item is sold at a low price in order to increase sales of a complementary good, such as consumable supplies.

To view graphic examples of each model and purchase a book on business models, please read the original post on Medium that was written by Navdeep Yadev.

In summary, we know of at least 10 startup business models that work. Your job is to match one of them to your startup idea, and then execute it as if your life depended on it!

About the Author: James Spurway is an Angel Investor, Advisor, Mentor, Speaker, former Commercial Pilot, and Author specializing in raising debt and equity funds for pre-seed or early-stage seed rounds for Startups in the Fintech, DeepTech, AgTech, and ClimateTech verticles. He lives in Singapore and has spent the past 30 years living and building businesses in Hong Kong, Vietnam, Germany, Switzerland, Monaco, the USA, Thailand, the Philippines, and Australia, where he was born.

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