Business Models: What Model to Use for Your Business

Hi, all! I’m currently taking a few college classes, which might slow me down a bit when it comes to making new mugs—but the goal is that what I’m learning now will help me build a stronger website and business in the long run.
I thought it would be fun to create a blog and share what I learn as I go through my Web Business Creation class. That way, you can come along on the journey with me—and maybe even pick up a few tips along the way!


Exploring Different Business ModelsThere are many types of business models out there, and the best one for you depends on what you want to sell and how you want to run your business. Here’s a quick list of common models we covered in class:

• Retail (Brick-and-Mortar or E-commerce): Selling products directly to consumers in a physical store or online (e.g., Walmart, Amazon).
• Dropshipping: Orders go to a third-party supplier who ships directly to the buyer (popular with Shopify sellers and Oberlo users).
• Subscription Model: Customers pay a recurring fee (monthly or annually) for a product or service (e.g., Netflix, Spotify, software companies).
• Freemium Model: Basic services are free; advanced features cost money (e.g., LinkedIn, Dropbox).
• Marketplace Model: A platform connects buyers and sellers, taking a fee or commission (e.g., Etsy, eBay, Airbnb).
• Advertising Model: Content or services are free; revenue comes from selling ad space (e.g., Google, Facebook).
• Licensing Model: You license your intellectual property in exchange for royalties or fees (e.g., Microsoft licensing software).

Choosing the Right Model for YouSo how do you choose the right model? It really depends on your passions, resources, and goals.
For example:

• If you love creating and selling physical products, a subscription model might not be the best fit.
• If you don’t have room to store inventory, dropshipping could be a smart solution.

Many models can work for a single idea—you just need to find what fits your workflow and vision.


Is There Demand for What You Sell?To find out whether there’s demand and competition for your product idea, you can use a keyword planner like:

• The HOTH Keyword Planner
• WordStream Free Keyword Tool

These tools show how often people search for certain terms—and how competitive those keywords are.
For example, if I type in "dinosaur mugs" on WordStream, I see:

• Search Volume: 880 (not super high)
• Competition: High (lots of advertisers want this space)

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That means while fewer people are searching for "dinosaur mugs," the ones who do are valuable—possibly more likely to buy. But it also means ads will cost more to run because others are bidding on the same keywords.
This kind of data helps me decide if a product like dinosaur mugs is worth the time and investment to market online.


Final ThoughtsHopefully this little tidbit helps you on your own business journey! Whether you’re planning a storefront, an Etsy shop, or just dreaming up ideas, understanding your options—and knowing how to research them—is a huge step toward reaching your goals.
Thanks for learning along with me!