The big idea
🧩
How you make money
A business model is the logic of how a company creates, delivers, and captures value.
Business · Lesson 3
Business Models
beginner⏱ 14 min · 8 cards
Common models
Ways to earn
Tap each model.
Key term
Key term
What is a business model?
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Business model
How a company creates value, delivers it to customers, and captures revenue in return.
Three verbs
Create, deliver, capture
A model has three jobs, and a company can be excellent at one while failing another.
Create value without capturing it and you have a hobby. Capture without creating and customers leave the moment an alternative appears.
Nuance
Why it matters
Maester Note
The same product can succeed or fail depending on the model around it.
Recap
Key takeaways
- ✓A business model covers creating, delivering, and capturing value.
- ✓Creating value without capturing it is a hobby; capturing without creating is temporary.
- ✓Common patterns include one-off sale, subscription, marketplace, advertising, and freemium.
- ✓The same product can support different models, each with different demands.
Quick check
Which best describes what a business is?
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