Whenever you come into contact with a new company, be it a new customer or a new client, it is critical that you immediately gain a clear understanding of how that company makes money. This is NOT the same thing as asking “What do they do?” Google is a perfect example – Google does online search, but it generates revenue by delivering online advertising. Once you learn some basic business models it becomes much easier to spot them in real life.
I recently came across a great cheat sheet, brought to us by the geniuses at Dummies.com.
Find the full list here. I am sure this is not an exhaustive list, but having the most common business models at your fingertips will make it much easier to understand new models as you encounter them.
Why should you care about how your clients make money? Because unless they are non-profit, they are in business to make money. Do not waste time getting tangled up in “what they do”… focus on helping them to make more money and you will become a much more valuable partner to them from the start.
Know of other helpful business model resources? Tweet me @RachelLColello or leave a comment below!