Business Model

This video by YC was recommended to me by Jaiveer.

• Anu Hariharan - Nine Business Models and the Metrics Investors Want

There is also this video that is more recent? https://www.youtube.com/watch?v=oWZbWzAyHAE&ab_channel=YCombinator

1. Enterprise
2. SAAS
3. Usage-Based
4. Subscription
5. Transactional
6. Marketplace
7. E-commerce
8. Advertising
9. Hardware

If it doesn’t fit into this, then it’s a moonshot.

1. Enterprise

Enterprise company sells services to other businesses on a single-license basis. These contracts have fixed terms, designated contract values, and come up for renewal at the end of the term.

Examples:

• Docker
• Cloudera
• FireEye

2. SAAS

Most startups fit into this.

A SaaS company sells subscription-based licenses for a cloud-hosted software solution.

3.Subscription

A subscription company sells a product or a service, usually to a customer, on a recurring business.

Example

• The Athletic

Difference between SaaS and Suscription model?

She talks about this model, but I didn’t write deep notes for this.

Transactional

A transactional company enables a financial transaction on behalf of a customer and collects a fee.

Basically

• Stripe
• Paypal
• Coinbase

Marketplace

A marketplace company acts as an intermediary int he sle of a good or service between sellers and buyers. Example:

• Airbnb
• eBay

Reflect on user behavior.

E-Commerce

Monthly

Include all the costs.

Advertising

Make money from advertisers. It’s all about the users.

• Snapchat
• Twitter
• Reddit

IMPORTANT: Define active users, and track that.

Hardware

A hardware company sells physical devices.

Hardware always loses

From Jaiveer: Hardware always loses. Just look at Unitree.

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