Business OR Consumer?

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Before we jump into the various types of revenue streams, it’s important to explain a couple of related acronyms.. B2C (Business to Consumer) and B2B (Business to Business). These aren’t revenue streams so much as who the revenue is coming from, but they’re important to learn and understand.

Business to Consumer (B2C)

Consumer
/kənˈsjuːmə/
noun
a person who purchases goods and services for personal use.

B2C companies design their products or services for consumers and market them accordingly. Consumers are not professional buyers and successful B2C companies will dedicate their messaging to the needs, interests and challenges that individuals face in their everyday lives.

Examples of B2C companies include: Spotify, Very.com and Nike

Business to Business (B2B)

Business
/ˈbɪznəs/
noun
a commercial operation or company.

Some businesses’ customers are other businesses, making them a business to business business. Got it? Essentially, they’re selling their products or services to organisations rather than individuals. Granted there will likely be an individual buyer acting on behalf of the organisation, but a B2B company will have to market themselves based on the problems and needs of the organisation, not an individual.

Examples of B2B companies include: Salesforce, IBM and Quickbooks

Note the following:

  • Almost any revenue models can be either B2C or B2B
  • BUT some revenue models are more commonly B2C and some lend themselves better to B2B
  • Some companies will have both a B2C model and a B2B model
  • Some companies appear to be B2C but are actually B2B