7 Business Model Patterns and 4 Business Model Principles


  1. Bits not atoms – Bits are easier to move than atoms. This is why Google and Facebook were able to grow so rapidly
  2. Platforms – Software-based platforms can be distributed globally with great ease e.g. iOS
  3. Free – With a free basic account and a premium paid account service you can reach a huge number of users through virality
  4. Marketplaces – Marketplaces have always been important in the business world. Now marketplaces have moved online, like Airbnb, growth can be global and exponential
  5. Subscriptions – Software-as-a-service is the dominant model for enterprise software, including streaming companies like Netflix and Spotify
  6. Digital Goods – In-app purchases are the intersection between bits and atoms
  7. Feeds – Facebook and Instagram provide personal feeds for their users but they make their money through sponsored updates

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