Leading Agency
in South East Asia












14 new business models with tremendous potential for success in recent years

Social Outreach



What is a business model?

A business model is an abstract concept with various definitions. It is commonly used to describe how a company generates value and profit within the business environment. Understanding this will help you see why the new business models can be effective for your entrepreneurship.

Successful business models help a company identify its market approach and provide appropriate solutions for customer needs. Furthermore, it yields major economic benefits and constructs a sustainable and competitive foundation for growth.

A business model will address some crucial questions:

  1. Who is the target audience?
  2. What are the benefits that the company offers its customers?
  3. How does the company operate?
  4. What is the business approach to generate profit?

New business models

Business models definition

New business models for start-ups

On the journey of early entrepreneurship, capitalizing on new models, innovation, and novel product lines are incredibly crucial for success. If you are planning for your own startup and looking to explore unique business ideas, here are 14 new and promising business models:

B2B2C Model

B2B2C (Business To Business To Customer) is a special business model involving two companies collaborating to bring products to consumers. This model takes advantage of both B2B and B2C, creating an efficient distribution system that provides more value for customers.

For instance, Xiaomi is a popular Chinese technology company specializing in manufacturing consumer electronics such as mobile phones, tablets, etc.

Xiaomi applies the B2B2C model by partnering with component manufacturers and machining companies to produce high-quality and affordable products. Subsequently, they reach out to consumers through various distribution channels, including online stores and representative outlets.

New business models

B2B2C brings two enterprises together

Pyramid Business Model

This model has various interpretations and definitions. In some cases, it can be used legitimately and in accordance with regulations. Unfortunately, in other instances, it may become a form of fraud or multi-level marketing.

One of the advantages of the pyramid model is that companies only need to share a percentage of commissions instead of allocating capital for salaries to the sales team. This can create a stable cash flow and save operational costs. With that being said, companies following this model require individuals willing to do whatever it takes to make sales.

However, the pyramid model also comes with risks and limitations. Without continuous growth and recruitment of new members, the sales network can collapse. If it does, lower-level members will get the short end of the stick.

New business models

The pyramid model is prone to many risks

Freemium business model

Freemium is a hybrid model combining free and paid services, which has gained a lot of traction in major companies. The free version of a product or service not only helps attract customers but also creates opportunities to convert them into paying customers in the future.

Platforms like Zoom, Spotify, LinkedIn, and Canvas have successfully implemented this strategy. Offering customers a free version with certain functional limitations will attract a large number of potential users. It delivers value to customers by introducing them to the features and benefits of the product or service. The minor limitations will create an impulse to experience the actual value that the paid version can bring.

New business models

Freemium business model attracts significant potential customers

Franchise business model

The franchise model is an arrangement in which the brand owner allows the receiving party to use its name and other intellectual property.

In this business model, the franchisor provides the franchisee with the necessary rights, materials, support, and guidance. In turn, the franchisee is contractually obligated to operate according to the standards and regulations of the franchiser.

New business models

The franchise model has attracted a lot of attention in recent times

This is a perfect fit for entrepreneurs planning to start a business with the permissions to use a recognized brand. Startups can build trust and establish near-instant customer recognition while minimizing the risks and costs for building a new brand.

Furthermore, you will receive valuable guidance and advice from established enterprises on operations, management, and marketing. This will enable you to quickly access the knowledge and skills necessary to succeed in your chosen industry.

Agency business model

The agency model is considered one of the quickest and most promising ways to succeed today. Every business and industry requires marketing, and an agency can offer specialization, flexibility, as well as diversity in services.

On Digitals is a startup company with an agency model in the field of Digital Marketing. We are aware of the rapidly rising demands of customers and provide benefits by improving expertise and service quality. And that is the essence of this model: promoting businesses in today’s complex digital environment.

New business models

On Digitals is a startup with the agency model

Online business model

Online business is no longer a foreign concept in recent years, but it is still incredibly vast. In fact, it has become an indispensable part of the modern and rapidly developing economy. The versatile model can manifest across various social media platforms and e-commerce websites. Therefore, this is a noteworthy option to consider when embarking on future business endeavors.

New business models

Online business is seeing immense growth in the digitalized era

Direct sales business model

Unlike online sales, direct sales is nowhere near uncharted territory as it is an integral part of the market. This approach enables you to directly interact with and nurture potential customers. Therefore, you can establish relationships, build trust, and understand customer needs.

Additionally, employing the direct sales model also provides flexible income opportunities. Vendors can manage their schedule as desired, and income is often based on sales volume and the ability to build a business network.

New business models

Direct sales helps vendor understand customers effectively

Affiliate marketing model

The Affiliate Marketing model is still relatively new in the current market with numerous valuable benefits. It not only aids in cost-effective marketing but also serves as an exceptionally efficient strategy when combined with influencers.

Furthermore, this model allows you to gauge the effectiveness of marketing campaigns through tracking codes and reports. This facilitates easy campaign monitoring and adjustment. With the data obtained from tracking tools, businesses can understand their customers and optimize campaigns for better outcomes.

New business models

Affiliate model is highly effective for new product promotion

Associated products model

This model enables businesses to generate additional revenue streams from associated products, services, or activities. This helps increase the overall revenue of the company without relying entirely on the core product.

For example, Grab started as a mobile-based rideshare application, but later expanded its operations. It developed a stable system for profit through various associated products such as food delivery (GrabFood), goods delivery (GrabExpress), and a loyalty program (GrabRewards).

New business models

Associated products business model

Hypermarket business model

In simple terms, hypermarkets are retail systems offering a wide range of products and services within an expansive space. This business model offers significant benefits for consumers with product and service diversity, competitive pricing, and a comprehensive shopping experience.

Amazon stands as a prime example of an online hypermarket business model. Started off with online book retail, they expanded to a multi-industry online hypermarket. Leveraging customer data, Amazon delivers an intelligent shopping experience and creates substantial trends within the economic sector.

New business models

Hypermarket business model has a lot of potential

Free business model

If you are looking to build a sizable community of potential customers, this model can be the one for you. Everyone loves free products, and with them you can attract a large number of users or customers. Instead of charging for the product itself, you can seek alternative sources of revenue such as advertising or partner marketing to create business value for yourself.

Facebook serves as a prominent example of the free business model. It attracts a significant user base by putting out a free social media platform. This, in turn, yields major benefits by gathering data from users and generating business opportunities through advertising and partner marketing.

New business models

Free business model opens the door for a variety of different revenue streams

One-for-one business model

This model is built upon the combination of profit objectives and positive social impact. Instead of solely focusing on generating profits, every product sold equals an equivalent item donated to those in need. While this reduces the overall monetary profit, businesses will provide more value for the public while enhancing their image.

A successful applicant of this model is TOMS – the shoe brand. When customers purchase a pair of shoes, another pair will be given to underprivileged children around the world. Customers not only receive a quality product but also engage in a meaningful community-driven initiative.

New business models

One-for-one business model receives attention for its philanthropic values

Exchange business model

In today’s highly competitive business world, the exchange model has emerged as one of the easiest and most promising approaches. As the name suggests, this model generates value through the exchange of products, services, or resources between parties. This fosters a collaborating relationship between businesses based on economic benefits and innovation.

One of the most prominent success stories of this method is Airbnb, a platform for short-term lodging rentals. It connects those with vacant homes to individuals in need of lodging, creating an exchange between hosts and guests. Through this model, Airbnb has grown into a 10-billion-dollar company and has revolutionized the travel and sharing economy industry.

New business models

Airbnb successfully implemented the exchange model

Reverse auction business model

In the reverse auction model, the buyers will personally place a bid for a service. However, they are not committed to the provided price tag immediately. Nevertheless, if the seller accepts that price, the buyer will proceed to negotiate and commit to the terms and conditions set forth by the service provider. This model essentially turns the normalized concept of an auction upside down, which makes an excellent initiative.

For instance, a user can search for a 4-star hotel in a specific area and place a bid of $100 per night. Subsequently, the online travel company Priceline will send this request to hotels in the area and ask them to either accept or offer a lower price. The hotels can then “bid” on the customer and send information about the services and amenities they offer. The user will proceed to review the proposals and decide whether they want to accept one of them.

New business models

Online travel company Priceline utilizes a reverse auction model

Read more: What is the current situation of marketing in Vietnam and how can businesses use that to their advantage?

Final thoughts

Through the aforementioned new business models, On Digitals hopes that you have found the necessary information to embark on your entrepreneurial journey. However, no business model guarantees absolute success. Patience, dedication, and adaptability are key to achieving your desired results.

Back to list

Read more

    NEED HELP with digital growth?
    Tell us about your business challenge and let's discuss together