A good example of this type of bait and switch business is done by telephone companies israel whatsapp mobile phone number list or service subscription companies. When a customer is “given” a device for a very low price, but it is subject to a later payment for service plans.
With this, the company recovers the cost of the equipment and generates profit, almost without the customer noticing.
In multi-sided platforms , two or more groups of clients participate in order to create an interdependent relationship that makes them “work” together, thereby generating profits for the company.
This is why, in this type of business, the more people are involved in customer interaction, the greater the profit opportunities.
To illustrate this better, we can consider the example of Google. This search engine, although it has millions of users who use it for free, generates profits from many others who invest in advertising or positioning.
Companies that pay for advertising do so because they consider Google to be a trustworthy platform. In addition, it has sufficient user traffic that will allow them to have greater reach and effectiveness in their advertisement.
Thus, both groups of customers benefit in different ways, due to the symbiosis that exists between the two sides. And they are connected thanks to the platform that also benefits.
Free or Freemium
This business model is all about multi-sided platforms and bait and switch. In this case, the company offers a service that can be used for free by a sector of its users. But for this to work, there needs to be another sector that pays to keep the business afloat.
Here, any user can access the service for free. But in order to enjoy personalized services, updates or extra applications, they must make a payment. This is commonly known as a Premium version.
The kings of this type of business model are apps for mobile devices or computers. Platforms such as Spotify are also a good example.
This way, a large portion of customers can remain satisfied with the free service, while others are charged to finance all the features.
Affiliation Model
Affiliate Models were another of those that underwent major changes with the arrival of the Internet. They basically consist of affiliation or commercial relationships between different companies that maintain a dynamic of paid internal promotion.
This is very common in the business model of tourism or group travel companies. Here, the guide takes clients to certain shops or restaurants, with which he already has a previous business relationship. And from whom he receives payment for his promotion.
The new version driven by the arrival of the Internet is also very common. It occurs when a company has a website with a high traffic of visitors or a wide credibility in the sector. It allocates advertising spaces on its site so that other related companies can promote themselves.
These companies pay the site for allowing them advertising space or give them commissions for each click on their banner.
This is a very common model for Business Development today and is one of the easiest to notice. You only have to look at the advertisements that appear on the websites you visit every day.
Franchise or License for Business Development
The franchise model is one of the most widely known. This is because it is often considered a business where success is guaranteed. But this depends on several factors.
There must be a company that already has a product or service with proven success, reputation and proven quality. And based on this, it allows other people to use the image and products of its brand, in exchange for a royalty payment.
