Customer-funded Business Models

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Venture Capital > Best Practices > Customer-funded Business Models

Customer-funded Business Models
Paula Kokare, Project Manager, Switzerland, Premium Member
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... Read more? Sign up for free
 

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

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

 
2 More Customer Funded Business Models
Raj kumar, India, Member
 

 
Customer-funded Business Models not for Traditional Businesses?
Sandy Szilage, United States, Premium Member
 

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

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

     

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