A business model is a revenue relationship between a business and its customer.
The definition's perspective is the firm's. Business models answer questions that include:
What does the customer give us?
How secure are we that the customer will give us more in the future?
Are we dependent upon one of our customers?
What strategies can we employ to win customers? Hold them?
How do we maximize our revenues and profits from each customer?
All businesses contain at least one business model. Most enterprises, including small businesses, are comprised of multiple business models.
This site has undergone a major facelift. This remainder of this page's content has been replaced and updated:
The discussion about transaction frequency is now on its own page.
The discussion about revenue contribution is also on its own page.
The discussion about model types has been moved to its own page. Note, please, that this page is the start of a sequence of pages relating to model types.
You can access the new home page and all of the revised site's sections by clicking on any of the sections links (both below and at the top of this page, in the top (grey colored) section).
Change is rarely easy. I'm sorry about any inconvenience these changes cause you. I hope you like the site's new look. It features shorter pages and LOTS of examples to clarify the concepts.