55 Business Model Patterns

Core offer is priced competitively; optional extras are sold separately, inflating the real cost.

Price is determined dynamically through competitive bidding rather than fixed by the seller.

Goods or services are exchanged without money, enabling access when cash is scarce.

Customers pay upfront before the company incurs costs, generating structural positive cash flow.

Unlimited usage of a product or service for a single fixed fee, eliminating transaction friction.

Basic service is free; a subset of users upgrade to a paid premium tier for advanced features.

Users pay nothing; a third-party (typically advertisers) subsidises the offering.

Customers are charged precisely for what they consume, aligning cost with value received.

Buyers set the price themselves, often above zero thanks to social norms and goodwill.

Revenue is tied to measurable outcomes delivered to the customer, not inputs or time.

The base product is sold cheaply or given away; high-margin consumables drive ongoing revenue.

Partners split revenues proportionally, aligning incentives across the value chain.

Customers pay a recurring fee for continuous access, creating predictable recurring revenue.

A platform monetises two distinct user groups whose interactions create value for each other.

Third parties drive traffic or sales in exchange for a commission, extending reach at variable cost.

Rewards programmes incentivise repeat purchase and deepen switching costs over time.

Value is delivered through memorable experiences around the product, not just the product itself.

Products are personalised to individual preferences at near mass-production economics.

The platform facilitates direct transactions between individuals, removing the traditional intermediary.

Customers perform tasks traditionally done by staff, reducing costs and often improving speed.

Customers co-create the product or service, converting them into invested contributors.

A competitor's strength is turned into a weakness by attacking the opposite strategic position.

Additional products and services are bundled with the core offer, increasing revenue per customer.

A component's brand is made visible to end consumers, pulling demand upstream and commanding a premium.

Intellectual property is monetised by granting third parties the right to use it for a fee.

Switching costs are deliberately raised so that customers find it costly or impractical to leave.

Large volumes of niche offerings generate aggregate revenues that rival blockbuster hits.

Non-essential features are stripped away so the core product can be priced aggressively.

Simple products for price-sensitive emerging markets are later adapted and sold in developed markets.

Premium customers cross-subsidise access for lower-income segments, expanding the market.

A new value proposition is crafted specifically for underserved, price-sensitive segments.

Extreme exclusivity and craftsmanship justify prices far above the functional value of the product.

Physical products or processes are converted into digital equivalents, reducing marginal costs dramatically.

The manufacturer or producer bypasses retail intermediaries, capturing margin and owning customer data.

Products and services are sold exclusively or primarily through digital channels.

A proven model is replicated by independent operators who pay fees to use the brand and system.

Production is triggered by actual demand signals rather than forecasts, cutting waste and inventory.

Customers pay for guaranteed uptime or access, transferring operational risk to the supplier.

Ownership of the entire value chain delivers quality control, cost efficiency, and margin capture.

A specialist masters one layer of the value chain and sells that capability to multiple industries.

Core competencies developed internally are packaged and sold to other companies as a service.

External R&D partners and stakeholders co-create value, reducing internal innovation costs.

Core technology is made freely available; the business model monetises services, support, or extensions.

The company coordinates a network of specialised partners instead of performing activities itself.

A brand operates a branded zone inside a partner retailer's store, sharing traffic and costs.

The full problem is solved end-to-end rather than selling individual products, deepening customer dependency.

A vast product range is offered under one roof (physical or digital) to become the single destination.

Products are manufactured by one company and sold by another under the buyer's brand name.

Capital or pre-orders are raised from a large crowd before production, validating demand and reducing risk.

Tasks or ideas are outsourced to a large open community rather than a paid, closed team.

High-value assets are divided into shares that multiple owners can buy, reducing the access threshold.

Behavioural data collected from users is monetised directly or used to create superior product offerings.

Access to assets is sold on a temporary basis, lowering the upfront barrier for customers.

A competitor's product is legally disassembled and improved upon to enter an established market at lower cost.

Waste or by-products are converted into sellable goods, creating revenue while reducing disposal costs.