If you own a company, you might want to make the world a little better. But you probably want to earn money too. And one of the key things to make money in a company is to establish your income model.
When it comes to considering how you want your business to generate income, there are things that you need to consider, such as the target audience. We cannot compare a large engineering works company with a multinational that sells helmets for puppies. Therefore, you need to ask yourself who your clients are or how your clients access your products and services.
Income model for companies; 5 classic and modern ways for this
Lucky for you, technology has changed and now there are more different options and more types of payment, which facilitates the arrival of new income models that make more flexible the question of how to generate money for a company.
In this article, we will look at some of the most common income models for today’s businesses. Let’s go!
Single payment. (A quite common income model)
It is the classic one. When you go to a bakery, you pay for your loaf of bread and then you leave. When you go to a supermarket, you pay for your grapefruit-flavoured isotonic drink, and then you also leave.
What happens is that, in times of digital transformation, things get complicated. For example, if you have an online store, you should be very good at making your payment process simple and effective, don’t let your sales go by doing dodgy things. In fact, some studies claim that almost 70% of ecommerce sales are aborted during the payment process. Beware of this, this is actually quite important
Payment by subscription. (Another popular income model)
It is another popular one. From the electricity bill to the subscription to television channels, thousands of companies use the subscription payment model, used by millions of users every month.
This income model has many benefits, such as customer loyalty and a constant flow of income, but also requires companies to perform a magnificent job in order for the users to keep the subscription active, and the effort to have an excellent customer service that ensures that the company takes care of the clients as soon as a problem arise.
It is a way of indirect income, which works mostly in media. The company (a television channel, a radio station, a newspaper, etc.) offers its product free of charge to thousands of people, and obtains income through the businesses that are advertised.
Although this income model has always been linked to popular media, nowadays , you can do that from home and with talent and hard work, this is the power of internet, anyone can turn their website, YouTube channel or Instagram profile into the mass media. Yes, we do know this is not easy, but it’s not impossible.
Commission. ( a different income model that is quite interesting)
It’s about selling products that are not yours, but from third parties, but these report a profit for each sale (which will be paid by the “owner” of the product).
Although it is another classic income model, again the Internet has transformed and expanded the concept. From “dropshipping” to the affiliate programs, new ways to obtain commissions have proliferated, turning the commission model into a very flexible concept, which has been adopted by thousands of companies and individuals.
Freemium. (this income model is quite trendy at the moment)
As we mentioned, this one is quite trendy, and it has found the right place in things such as mobile apps.
As we already mentioned, technology has facilitated the adoption of income models that could hardly be established in other contexts. Businesses such as the online sale of software, both for the consumption of individuals and for companies, have fostered this model in which most of the product (either software for companies, an app, or a videogame) is offered free of charge and the user, if he wishes, pays for supplements or improvements.
This is a fantastic way to publicize the product and reach a large number of people who might not want a single payment purchase or a subscription, but then they become clients as soon as the products become free. Keep in mind that, only a small part of the clients will pay for the improvements that are offered, but that can also mean significant income if the product reaches thousands or even millions of people…
These are 5 of the most common income models, but there are others, and technology will continue to facilitate new ways to earn money.
And another thing that technology can also achieve is to help improve customer service. Do you want to know a great way to achieve this? Take a look at Pandora ITSM.
Pandora ITSM is software that has, among other features, an incident management system (help desk software) that will help provide good customer services for companies.
In addition to this, Pandora ITSM has other features that can also be very interesting for a company, such as an inventory, a project management system or a vacation manager, among others.
Do you want to know what Pandora ITSM can do for you? Click here: https://pandorafms.com/en/itsm/
Or you can also ask us any question you might have about Pandora ITSM. You can do that, thanks to the contact form that you will find at the following address: https://pandorafms.com/en/contact/
And don’t forget to leave a comment in the comment section, we want to hear your opinion! Do you know another income model? Have you ever seen a new interesting income model? Do let us know by writing in the comment section down below! Your comments might help different readers. And also have you checked our other articles? We have already talked about customer service on them! Take a quick look at them!
Thank you very much and don’t forget to…
Send us your questions! We will be glad to answer them!
The Pandora ITSM team will be happy to help you.
Pandora FMS’s editorial team is made up of a group of writers and IT professionals with one thing in common: their passion for computer system monitoring. Pandora FMS’s editorial team is made up of a group of writers and IT professionals with one thing in common: their passion for computer system monitoring.