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Choosing the right business model for your marketplace

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Choosing the right business model is like choosing your life partner. You have to stick with her no matter how good or bad the situation gets. In the same manner, the right business model can sometimes be a lifelong commitment. Marketing experts can help you in determining what business model you should adapt but if you wanna do it yourself then you are at the right place.

Commissions

Here a company would set its percentage cut on any lead or transaction it facilitates in completion. Let’s make it easy, if you sell your friend’s pen to someone, your friend will pay you a certain percentage of the money he made. It works best for employees in the sales department, they get a basic salary for their hours and commission (Percentage) on the products they sell. 

Subscriptions

One of the most recently growing business model is the subscription-based model, commonly used by OTT service. OTT is Over The Top services, like Netflix, Uber, Amazon, etc. And to use some of these services you would have to “Subscribe” to them, meaning you would keep paying for time and use their service. Or you would pay once for a certain period and keep using it. This is an awesome business model because its pay first and then use (Pre-paid)

Listing fee

If your idea is in start-up phase and you wanna start making money go for listing fee model. This model is basically for online platforms that connect users and make transactions. Okay, let’s make it easy to understand: When websites connect buyers with the seller they charge a product listing fee. This amount can vary if you wish to charge more for listing a product in your automobile category and less for a product in grocery. Adjust these pricings well and this model is going to rain money! 

Lead generation fee

This one is easy and tricky at the same time but if you can understand it than making money won’t be much difficult for you. The lead generating model is simply collecting customer information and selling them in bulk. Now, don’t go being all judgmental, we don’t mean any wrong kind of information. Although details may vary from buyer to buyer but asking for name, email and other personal details that are harmless can be a good start. 

Freemium Service

Be very careful with this, it’s like playing with fire. Offer a free trial period of your services or keep the basic features of your product or service for free and charge a premium for its up-gradation is what Freemium service is. But, what if your basic features are fulfilling the customers’ needs and no one is upgrading leaving you to pay for the maintenance and operating cost from your pocket?..(Scary)

 Apart from the above suggestions you can try online marketplace like www.snupit.co.za, where you can find new business and leads for both B2C and B2B.

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