Igor Shoifot says, “Sooner or later, every young business needs to begin putting money in the bank — and there are five business models your startup can use in its pursuit of bringing in revenue. The one (or more) you choose will depend largely on the product or service you’re providing, but all five monetization models have their advantages and disadvantages.

Related: 6 Great Business Models to Consider for a Startup

Here’s a primer to help you consider which model(s) might make sense for your startup to pursue — and to know what you’re getting into.

1. Existing on Venture Capital (VC) — aka OPM (Other People’s Money)
Aside from this not being a “real” business model in the traditional sense of a company making its money by providing a good or service to customers in exchange for compensation, it’s not necessarily a bad one. The list of prominent OPM addicts has included Instagram, Twitter, Skype, Hotmail and many more successes that had no business earnings and relied fully on venture capital for years”.

B2B? C2C? VC-Backed? Read on to Have These and Other Business Models Explained.

‘Entrepreneur’ Blog

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