Customer-funded Business Models


 
Venture Capital > Best Practices Premium

Customer-funded Business Models
Paula Kokare, Project Manager, Switzerland

In his research, Professor J. Mullins (2014) argues that customer-financed business models provide an alternative source of financing for start ups. These models bring great benefits for start-ups compared to sourcing through external funding, e.g. financing with venture capital or crowd-sourcing. Mullins distinguishes 5 categories of customer-funded business models:
  • MATCHMAKER MODELS: businesses that connect buyers and sellers in the marketplace without owning the goods and services exchanged between the participants (e.g. airbnb, DogVacay). Matchmakers earn their revenue as a commission on the transactions carried out between the parties that exchange the goods.
  • PAY-IN-ADVANCE MODELS: businesses that persuad... Register

 
 
Limitations of Customer Funded Business Models
Gavril, Management Consultant, Albania
 

 
Mullins ( Design by Swiss )
jayesh, Business Consultant, India
 

   

   

 
Problems with Customer-funded Business Models
Tom Lesnikowski, Business Consultant, Australia
 

 
When a Customer Funded Model Works
V.SHRIDHAR, Business Consultant, India
 

   
 

    Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  


Special Interest Group Leader

You here


More on Venture Capital
Summary
Forum

Best Practices
  • Customer-funded Business Models

Expert Tips

Resources

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2017 12manage - The Executive Fast Track. V14.1 - Last updated: 24-3-2017. All names tm by their owners.