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10 Popular Business Models for B2B & B2C Software Based Startups 

Are you going to start a software based business in the recent days? If you are, then it’s time to identify the business model that a beginner should use for a startup, before finding the best software developer to build your app. In this article, we are deciding to talk about the top 10 business models that most of the popular software based startups use. These models are not just only helpful for the startups but also helpful for utilizing the other business that is looking to make a different approach.

There is a huge difference between the business models and pricing models. Here pricing models reflect the numbers, while business models reflect the way you sell your product and grab the attention of a user. The business world is constantly evolving, and there is cutthroat competition. Time has changed, and that’s why the way of accessing the business is also changed. No doubt which type of business you run, you should have a strong business model that helps a Startup Guide business.

The ten startup business models you should know:

1.    Feature-Based Business Model

In feature-based models, each tier of the subscriptions contains more features, and it becomes more expensive. This model is tough to implement technologically, and it needs super established products and more skilled developers who can make a balance between the plans and feature usage. You can also make plans for only two tiers where one contains the basic feature & another one has advanced features. There are some platforms where a business can launch and get promotions for the Startup incubators.

2.    User-Based Subscription Model

This is the most simple business model where a user can subscribe for a given period of time. A customer is free to choose plans monthly and yearly for Startup accelerators. There are so many platforms s which use this kind of business model that charges a small amount of money from the user according to their plans. All you need from this model is to achieve high volume.

3.    Freemium Business Model

In the freemium business model, you should allow your customers to use the products free of cost. But wait! To get the premium and advanced features, you have to unlock the plan. This is the best idea a business can use to grab the attention of users through Venture capital. Most of the people use the free resources, and once they get hooked with they will definitely buy your product.

4.    Utility-Based Subscription Model

This Startup business plan model is based on consumer usage. In this model, the Startup investors plan for several price tiers depending upon the services and product is being used. The best example of this model is Amazon Web services. Here you only pay for what you use. When you increase the usage, the price will also increase. So, they use this kind of model for the well-being of customers and sellers.

5.    Time-Based Subscription Model

Many businesses also use the time-based model, including 1 to 6-month plans. These kinds of subscription models are basically expensive for a 1-month plan, but the percentage goes down when you buy a plan for six months of 1 year. A business can also give lifetime membership plans to their users and give them opportunities to save some cost.

6.    Ad-Based Business Model

Most of the blog websites use this business approach. This business model only works when a business has high volume traffic on your platform. It mostly works for the affiliate business, but regular ads are more targeted because of cookies. The site owner has all the power to choose the affiliate ads. The most hated part of this business model is the irritating ads. A business can also give a pricing model or premium subscription to get the service with a completely ad-free experience. The companies likethe New York Times use this business model.

7.    B2B Enterprise

The B2B enterprise model allows businesses to sell a greater quantity of products at a minimum cost of the amount to the companies. This model is helpful for B2B business when a business sells the product to another business in bulk. This kind of model is only used for physical products and digital products. 

8.    Listing-Based with Fees

This is only used in any Startup business model where the seller makes money through the business with a listing-based fee. This method is used for the online marketplace as well as an offline marketplace. The bigger companies like Amazon use this strategy, but the company also has a subscription plan for those sellers who want to sell more than 40 products within a month. 

9.    Single-Payment Product

Single-payment products are those that customers only buy once. There are no subscription plans and rewards. It can work as a business model. But for this, a business should have a good product so that people can attract and decide to buy the product in the first look. Besides that, a business should set good pricing for the product so that it can make a good entrance and reach to the mass people. This kind of business Startup marketing plan is only applicable for consumable products and disposable products. 

10.Percentage-based Model

This is another kind of Business analysis pricing model that allows the marketplace startups to make money when their customers do. The larger and established companies like PayPal or eBay use this pricing model approach in their business. They start this strategy from the initial phase and become profitable day by day. So, why don’t you try this model to your business to increase your sales? 


When you are deciding to start a business, then the very first thing that you have to learn is using the right pricing models. You should approach for the right model where your business can make money consistently over time. It is always crucial to learn how a startup pitch can grow with the business model.

The above-discussed models are helpful for B2B and B2C businesses. A business can choose any of them and go with that. Try to talk with your targeted customer, set a plan, use the right approach for the Startup fund and then calculate your estimated gross value.