Business Model Patterns

Learn proven patterns used by successful companies

Why Patterns Matter

You don't have to reinvent the wheel. Successful business models follow recognizable patterns that have been proven across industries. Understanding these patterns helps you design, analyze, and innovate your own business model.

The key insight: Patterns are not templates to copy blindly, but frameworks to adapt. The best companies often combine multiple patterns.

🎨 Business Model Patterns

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Freemium

Free basic tier with premium paid features

SpotifyDropboxSlackZoom
Key Canvas Blocks
CUSTOMER SEGMENTS

Mass market + Power users

VALUE PROPOSITION

Free access + Premium features

REVENUE

Freemium conversion (typically 2-5%)

COSTS

High CAC offset by viral growth

βœ“ Pros
  • β€’ Viral growth potential
  • β€’ Low barrier to entry
  • β€’ Large user base
βœ— Cons
  • β€’ Low conversion rates
  • β€’ Free users can be costly
  • β€’ Feature gating is tricky

🎯 Pattern Matcher

Match each business scenario to its pattern:

A printer company sells printers at cost but charges high margins on ink

LinkedIn offers free profiles but charges for Premium features

DoorDash connects restaurants with hungry customers

Key Takeaways

  • β€’Common patterns include Freemium, Marketplace, Subscription, Razor & Blade, and Platform.
  • β€’Each pattern has trade-offs - understand pros and cons before adopting.
  • β€’Many successful companies combine multiple patterns for competitive advantage.