6 online business models that will work in 2021

Establishing a company involves many steps. After you have the idea and validated your project, it is necessary to prepare a business plan. In this document it is necessary to explain its ambitions in order to realize them. She must not only describe her commercial strategy and legal form, but also her business model. The latter is a key element through which the entrepreneur’s original idea can see the light of day.

The business model, also called economic model, has been used for years to start an entrepreneurial project. It makes it possible to concretely outline the financial structure of a company, taking into account the different services or products required for its creation. It contains the market studies necessary to assess demand and know in which sector we are evolving, the entrances but also the exits of money.

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The democratization of access to entrepreneurship, ease of getting started, social media and other recent developments have enabled the proliferation of new business models. While it’s not always easy to pick one, some are doing particularly well online in 2021.

The marketplace, still as popular

Marketplaces have been booming for a number of years. This term includes C2C, adopted by the Airbnb marketplace, as well as B2B and B2C. In France or the United States, this business model has already enabled several companies to experience success and evolve rapidly.

Among them ManoMano, which has revolutionized the distribution of DIY and garden items on the Internet. The business model, based on connecting buyers and sellers, has enabled it to become the third French DIY e-merchant after Amazon and Leroy Merlin. The marketplace model allows ManoMano to work hand in hand with its merchants and also thousands of referenced products. Gradually, it was able to expand internationally, but also operate four fundraisers.

The freemium model is applied in all sectors

In recent years, a new economic model has emerged: freemium. This business model consists of offering part of a product or service for free and charging for premium features. Deezer, Buffer, Mailchimp… These companies were quick to sell extra features to their customers who took advantage of their free service.

Over the years, this business model has enabled them to become benchmarks in their respective industries. So is Spotify, which has also adopted this economic model. The music streaming platform manages to attract more and more premium subscribers. It now has more than 165 million, a figure that continues to rise, as does its income.

Pre-ordering tempts start-ups

Upon their launch, companies that produce goods face many challenges, including manufacturing before they are sold. It is therefore necessary to have funds to stock up. The risk is then an overproduction of products, without having tested the market. For these reasons, some of them are now opting for pre-order. After all, they only start producing a product after the customer’s purchase has been made. The advantage of receiving payments before production is that little money is needed to get started.

This business model has been highly democratized with the rise of financing platforms such as Ulule. These are increasingly shared on social networks, making them significantly visible. For example, the clothing brand Asphalte is experiencing a dazzling success. After the failure of its first project, the company revised its business model and opted for pre-order. Its on-demand model allowed it to sell 42,000 t-shirts during its first crowdfunding presale.

Tips, an open door to the creative economy

The tips are highly valued by content creators as it ensures them a stable revenue stream by basing their compensation on their audience, not ads or sponsors. Today, tips is an economic model present in many sectors, helped by the emergence of platforms such as Tipee, specialized in crowdfunding or Substack, which allow newsletter creators to monetize their content thanks to the tool.

More recently, with the arrival of OnlyFans, the tips have also expanded to the field of photography and video. A paid formula that has attracted athletes, influencers and sex workers alike. Founded in 2016, the platform now has 130 million users and 2 million creators, proving that the tipping economy is a thriving business model for content creators.

Mediation changes consumption patterns

When starting a business, it is not always easy to find customers. It is for this reason that many startups have evolved around mediation. In concrete terms, these are platforms that connect buyers and suppliers of products or services and are reimbursed via a commission.

When you want to sell a piece of clothing, it is now common practice on Vinted, Vestiaire Collective or Grailed. For carpooling, many travelers instinctively turn to BlaBlaCar. Based on the increase in internet usage, these two companies have greatly changed our consumption patterns. It is not for nothing that they facilitate contact between customers or professionals, so that they can find what they are looking for faster.

SAAS for software vendors

SAAS (software as a service) in turn is a very specific model that is anchored in B2B. To finance its activities, the company makes software available through a subscription system. To save money, many companies have looked at using a SAAS. To meet this strong demand, software publishers are increasingly turning to this business model. Several of them have benefited from its emergence, such as Content Square, which specializes in optimizing the digital experience, and Aircall, an expert in cloud-based business telephony solutions.

Finally, while there are many business models, it is important to choose the one that best suits your project. The efficiency of the economic model will determine the growth potential and growth rate of an activity.

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