Setting up a franchise is not always successful, as many factors can israel whatsapp mobile phone number list influence it. Royalties can exceed the profits of the branch and strict supervision means that the investor has no decision-making power over the business.
This is a business model with a long history, so it could be considered traditional. But the innovation lies in the new areas and interpretations in which it has been applied.
It is generated when customers pay the company a fixed fee for a subscription, in exchange for receiving exclusive offers or benefits.
In the past, subscriptions to magazines, newspapers and television channels were very common. Now, shops, restaurants, airlines and various clubs are the kings of this model.
By paying a subscription you can receive all kinds of exclusive services or products from the store or company you are interested in. This is how membership clubs for various companies and brands have become so popular.
It is a luxury service that requires little investment from the company. But it generates profits for customers and a sense of belonging that boosts loyalty.
b2b business model
The B2B or “Business to Business” Business Model consists of companies whose main clients are other companies.
One of the characteristics of these businesses is the marketing of raw materials, specialized services or the production of software or business management applications.
In a competitive field like this, the key to success is to handle transactions in the same way as you would like to receive them. Because, in fact, both companies have the same needs in terms of efficiency and profitability.
Companies that develop administrative software, accounting controllers or marketing strategy automation are some of the best examples of this model.
Recurring Business Development
Recurring Business Models are based on marketing efforts to get existing customers to repeat their initial purchase or, failing that, to make other secondary purchases.
Clearly, customer retention is one of the biggest goals of any company. From this perspective, attracting a new customer represents a greater investment for the company than simply getting them to continue buying.
However, this has become a whole Business Model in itself. And it determines changes in the products or production of companies to encourage their buyers to become buyers, again.
This can be seen in products that require replacements or refills with some frequency, or that simply need to be updated periodically.
For a recurring business model to work, it is necessary to generate a strong relationship between the client and the company. This is combined with a high level of loyalty that makes the client feel “committed” to the brand in order to remain a recurring customer.
