This Cow Illustrates 8 Business Models (Infographic)
It's not as silly as it sounds.
Don't worry though. Funding solutions company Business Backer has found an easy way to explain the difference between business models using a cow to help describe them. Before you roll your eyes, this metaphor will help you understand everything you should know about business models.
For example, do you know what the direct sales model is? If not, think of it like this: You have one cow, you sell milk door to door. It's as simple as that. Still not sold? Try this: If you have one cow, people can buy milk for 50 cents, and people can also buy high protein, lactose-free, low fat yogurt for $50. Do you know what model this is? It's the loss leader model -- where a product is sold below average market price in order to increase sales for other products with a higher demand.
So if you're unsure what model to use for your business, or if you simply want to educate yourself on the differences between major business models, check out Business Backer's infographic below.
Entrepreneur Editors' Picks
Online Scams Are More Sophisticated Than Ever. Here's How to Shop Safely on Black Friday and Cyber Monday, According to a Cyber Intelligence Expert.
This Guy Saved Barbie From Cultural Extinction. He Did It by Asking One Big Question.
The Top 5 Hot Franchise Categories for 2023, According to One Industry Expert
Why Can't We Resist Black Friday and Cyber Monday? A Behavioral Economist Explains the Psychological Forces That Make Sales Irresistible.
I Couldn't Sleep. I Obsessed Over My Failures. Then I Found the Weirdest Cure.
This Pitch Scored a $250,000 Investment — But It Almost Didn't Happen
Employees Were Demanded to Go Home. Here's How We Invite Them to Come Back.