Business Model - Direct
Score: +1
The "Direct" business model is one where there is a known source of sustenance in which to keep the product or service viable. There are a wide variety of business types that fit the "Direct" criteria category.
| Type | Explanation |
|---|---|
| Product Sale | This is the most straight forward model there is. An exchange of items or monetary instruments for a product or service, other wise known as bardering or buying. Ascertaining total cost of ownership of a product not attached to the internet is the most straight forward. |
| Try Before BuyThis model differs from the "Software Trials" of the "Invasiveness" criteria in that the potential customer chooses to take possesion of the trial product as opposed to having it thrust upon them. | In this model the potential customer voluntarily acquires a trial product that might have a subset of features or operate on a time limit. Then a decision is made whether to advance to becoming a "Product Sale." The "free" use of the product is understood to be paid for and supported by the actual sale that occur. This is very similar to the morsels of food handed out at the store on weekends in the hope the actual sales will cover the costs of what is handed out. |
| Donation | In a "Donation" model the funding source is a clearly defined avenue of giving. In the best of cases the cost of service operations is available and publically contrasted with the level of contributions made. In this model a zero cost to the end user is plausible and with credibility. This is still a direct model in that there is a single, well established correllation between end user contribution and services provided. In this model however; the contribution is likely not balanced across the end user community. |
| Foundation | Very similar to a "Donation" model except that the lion's share of contributions are made from a institutions, endowments or philanthropic acts of wealthy individuals. These contributions are made benevolently and not in exchange for specific products or services. Although such contributions could be made with intent of supporting a specific direction or feature of the receiving institution to the benefit of all. |
| Consultancy | In the consultancy model a product or service is developed and released without charge and follow-up assistance in setting up, using or supporting the software is offered at a fee. An entirely respectable model, provided the software has a reasonable expectation of basically useable without the consulting service. The use of the software has a known funding source based on the company profits garnered from providing a valued service directly to the end user community. |
| Mono-directional Advertising | The mono-directional model is becoming an extinct beast. An example of this model is the original television format where a show sponsored by advertisers is broadcast at no cost to the customer. It is a fair trade. The customer is entertained for little or no cost, the advertiser has an opportunity to be heard and the broadcast company is paid to be the intermediary. In contrast, the bi-directional advertising that has exploded using on-line technology the broadcaster's customer can click the advertisement and consequently pass information of unknown content. That one act provides an untold number of companies and persons in imbalanced about of information for the transaction made by way of correllating related information collected about the customer over time. Anyone clicking an bi-directionally interactive advertisement might as well just hang jackle bait on their front door. |