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A business model is this: how you make money. Do they use it for free and have to watch ads (because the ads will give you money)? do they get to buy stuff inside your app/website? Do they have to subscribe to your service monthly in order to use it (see Netflix). There are plenty more but I hope you have understood what we are heading to.
The ads model is the easiest to implement, because your final user will think your service is still free. An example of this is Facebook. Do you still need to pay to open an account on Facebook? No you don’t. but after say 3-4 post, usually there is an advert (that usually has the word sponsored on top of it). That is how Facebook makes money. Business Owners pay to Facebook, while normal users continue using the tool. Easy? Let’s move on to the next one.
The second business model I will try to clarify is the freemium model. What this means is you get to use the website/ download the app for free, but within it, you’ve got to purchase something if you want to do more. If you’ve seen people who played/plays the app Pokemon Go, you can notice that some of the app users are inclined to purchase a few items within the app itself.
The third is subscription. You pay monthly/yearly then you can use it. An example of this is Netflix. Quite easy right? There is plenty more business models not explored in this article, but once you’ve already understood what it means, the rest of it is ‘kacang’ as Malaysian usually says it. Fighting!