Software as a Service (SaaS)

SaaS is one of the most popular business models and has the highest chance of becoming a unicorn. In fact, 31% of the top 100 companies are SaaS companies, so it’s definitely worth paying attention!

If you don’t know what SaaS means, it’s simply a business model where software is provided on a subscription basis, usually through the cloud and the platform. The best examples of SaaS businesses are Zoom, Slack, Adobe, and many others.

In other words, software that provides you with some helpful service. You can also divide this business model into many others, such as CaaS, IaaS, Paas, etc.

This model has become increasingly popular in recent years due to its scalability and flexibility. SaaS is ideal for businesses that need to scale up or down quickly, as it allows them to pay only for the resources they use.

In addition, this model provides a predictable revenue stream, as customers typically pay regularly. If you receive $10,000 from subscriptions in one month, there’s a high chance that you’ll receive a similar amount the following month as well!

Transactional Business

This model is ideal for businesses that can provide a platform that connects buyers and sellers but does not hold inventory themselves. Examples of businesses that operate on this model include PayPal, Stripe, and Coinbase.

PayPal allows users to send and receive payments online. It charges a fee for each transaction and provides a great transactional platform.

It has the same advantages as the SaaS business model. It’s highly scalable, flexible, and has lots of different ways to grow. However, the type of monetization changed a little bit.

Also, it works worldwide and allows the whole infrastructure of each country to grow faster.

I can open an account through Stripe in 30 minutes and immediately get payments from clients all over the world. It helps small entrepreneurs to progress and large businesses manage their assets.

Overall, the transactional business model can be a highly effective way to facilitate transactions and generate revenue, particularly in industries with high transaction volumes.

Marketplaces

Marketplace business models are similar to transactional models, but they involve multiple buyers and sellers. Examples of businesses that operate on this model include Airbnb, OpenSea, and Amazon.

Marketplaces can be highly lucrative, particularly if they achieve significant network effects. For example, Airbnb has more than 4 million listings in over 220 countries.

With the right approach and execution, a marketplace business model can lead to impressive success. With marketplaces, customers can buy everything they ever wanted immediately, which leads to economic growth.

By the way, 14% of the Top 100 companies are marketplaces, but they create 30% of the overall value. So, overall, marketplaces are also a great business model that will increase your chances of becoming a unicorn startup!

Cutting-Edge Technology

Cutting-edge technology business models involve creating revolutionary products.

This is great for companies that can invest in research and development and have the technical skills to effectively develop and market their products.

One of the most notable examples of a cutting-edge technology business is Tesla, which is focused on developing electric cars and other sustainable energy products. The company is worth over $1 trillion and is considered one of the most valuable automakers in the world.

Another example is SpaceX, which is focused on space exploration and has achieved significant success in launching rockets and other spacecraft.

Yeah, as you can see, Elon Musk really likes to innovate!

Investing in cutting-edge technology can position startups at the forefront of innovation. It enables them to develop products and services with the potential to revolutionize industries and change the world.

Therefore, it is not only a great way to attract investment, but also the best solution for the world!

Enterprise Solutions (B2B)

Enterprise solutions business models involve selling large contracts to huge companies with 5,000 or more employees.

This model is ideal for businesses that can provide products or services that are critical to the operations of large companies, such as enterprise software or consulting services.

One of the best examples of an enterprise solutions company is IBM. It provides a range of enterprise solutions, including cloud computing, artificial intelligence, and blockchain.

IBM has been a leader in enterprise solutions for decades and has built a reputation for providing high-quality, reliable solutions to businesses of all sizes.

In a nutshell, it’s probably not the best option for beginners, but it’s definitely a business model worth paying attention to if you’re able to attract large investments!

Consumption-Driven Economy

In a consumption-driven economy, business models involve charging customers based on their consumption of a product or service.

Examples of companies that operate on this model include utilities and telecommunications companies.

This model is ideal for businesses that can provide products or services that are used regularly and can be easily tracked and billed.

One of the best examples of a consumption-driven company is AWS. It’s a cloud computing platform that charges customers based on their usage of computing resources, such as servers and storage.

By the way, most of the revenue that Amazon earns comes from AWS rather than from the marketplace itself.

Overall, the consumption-driven economy model can be highly effective. Companies that operate on this model can benefit from predictable revenue streams and a loyal customer base.

Advertising Business

Advertising business models involve selling ads to monetize free users. Examples of companies that operate on this model include Facebook, Google, and Twitter.

This model is ideal for businesses that can provide a platform that attracts a large number of users and can offer targeted advertising based on user data.

By offering targeted advertising based on user data, businesses can generate significant revenue, even if they offer their platform for free.

For example, Facebook has over 2.8 billion monthly active users, while Google has over 2 billion. Even if a small percentage of them are paying for ads, it’s still a significant number.

By providing a platform where users can connect with others or search for information, these companies have been able to attract a large and diverse user base, which in turn has made them highly attractive to advertisers.