Best Models are simplified representations of objects that behave in a particular way. They may be used to describe a situation or predict future behavior. Models have several limitations, such as not representing all the details of an object, and they are often approximations rather than exact replicas of the objects that they represent.

The online business models that are most common in the internet age fall into one of four general categories:

Ecommerce

Ecommerce online business models focus on selling goods or services directly to end customers using the web. This is a fast growing and popular business model for both consumer and B2B companies. Examples include online marketplaces, such as Amazon FBA, or ecommerce websites that sell only one type of product, such as eBay and Walmart.

Software

The software online business models category includes businesses that provide software products for a subscription fee. This can be a very profitable business model for companies that offer high-value, scalable software that is used regularly. Examples of this are Ahrefs, which offers a 7 day free trial and then charges $99 per month, and Dropbox, which offers a limited version for free but then requires you to pay to use the full service.

Service based

A service based online business is an excellent option for entrepreneurs who want to leverage their skills and experience in exchange for compensation on the internet. Typically, startup costs are low for this type of business and it can be very lucrative. However, it is important to keep in mind that these types of businesses tend to have high churn and can be difficult to scale. Buyers of this online business model should carefully evaluate user growth rates, cost of customer acquisition and lifetime customer value when performing their due diligence.