Customer-funded Business Models

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Customer-funded Business Models
Paula Kokare, 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... Register

Limitations of Customer Funded Business ModelsSign up
Gavril, Member
I agree with Paula in principle. However, there se...

Mullins ( Design by Swiss )Sign up
jayesh, Member
How does this apply in a country controlled by ver...

2 More Customer Funded Business ModelsSign up
Raj kumar, Member
@ Paula, adding to your point we can have two more...

Customer-funded Business Models not for Traditional Businesses?Sign up
Sandy Musallam, Member
This concept although interesting, would be diffic...

Problems with Customer-funded Business ModelsSign up
Tom Lesnikowski, Member
Whilst all five categories have their merits and a...

When a Customer Funded Model WorksSign up
I am New to Finance, I wish to share my experience...


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