Eight B2B Business Models


If you’ve followed my blog for any time, you’ve likely heard me talk about the 13 B2C business models that Steven Carpenter posted on the consumer models for internet companies.

I’ve taken some time to assemble their equivalent B2B models here and have broken each of them down into separate blog posts with more detail. This is taken from a presentation I’ve posted on Slideshare.

The talk included:

  • Marketing Methods
  • Pricing Methods
  • Sales Models
  • Business Models
  • Financial Models

As well as worksheets to capture your assumptions that you will input into a future financial model. All of these I’ll link to other blog posts later.

Here are the Eight B2B Models, I’ll be writing a post with more detailed explanations of each model that will link to the below:

  1. Subscription – Salesforce – cost of customer acquisition, lifetime value and churn
  2. Market Place – Alibaba – average transaction, commission on transaction
  3. Lead Generation – AllStarDirectories – traffic, form data, price per lead
  4. Productizing a Service – MOZ – adding scale to a service business. This includes building tools and business process automation over time into a scalable model.
  5. Transaction Fees – Flattr, KickStarter – average transaction fee, commission
  6. Commerce – AmazonSupply – Physical Goods – wholesale, cost of goods, retail, average margin, physical good
  7. Combinations – Multisided markets – hardware sensors, software services with data analytics. These are usually manifested in more mature startups vs. startups at launch.
  8. Non-profit – UP Global – is a model where we (my current employer) generate the majority of our revenue from corporate and foundation sponsors. Though some would say this isn’t really “tech” and more tech-enabled.

Do you have other examples that you’ve seen (at scale)? Add a comment below and I’ll add to the list and do a breakdown of each model.

About DaveParkerSEA

Dave is a 5X Founder and entrepreneur from Seattle Washington. He's a professional Board Member and Venture capitalist. He's the author of 6MonthStartup.com and founder of Lumeric.com, a quantitative Venture Capital resource.
This entry was posted in B2B. Bookmark the permalink.

3 Responses to Eight B2B Business Models

  1. I made a few minor edits and updated the blog for you. Sorry I couldn’t do it earlier. :-) Great job!

  2. Pingback: Business Models by Dave Parker - Brian M Ackerman

  3. Pingback: Business Models | Dave Parker

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s