What is a business model?
/ May 5, 2009 / 8:08 a.m.
Seth Godin has some good advice for the news business in his blog today, even though he does not use the word “news” or “newspaper” at all:
A business model is the architecture of a business or project. It has four elements:
- What compelling reason exists for people to give you money? (or votes or donations)
- How do you acquire what you’re selling for less than it costs to sell it?
- What structural insulation do you have from relentless commoditization and a price war?
- How will strangers find out about the business and decide to become customers?
He calls it a “business model revolution.”
