Usually, the most innovative business model is the one where the primary source of revenue is the actual users of your product. This is financially the most cost-effective business model. SaaS models are usually easiest to make money from if you have figured out the value proposition correctly.
And some of the toughest segments where business model discovery can be difficult is multisided markets. Especially marketplaces are difficult to establish.
However, Duolingo with its innovative business model has cracked the multisided market beautifully. Their actual source of revenue is from customers who want documents translated. So Duolingo has built an Artificial Intelligent-driven engine that takes untranslated phrases and presents them to people who are leaning the language with help of guides. The Artificial Intelligent engine chooses optimal translation and uses this for customers who want their documents translated. Now, this is an awesome innovation.
This video explains why a profitable business model is important.
These are some examples of Innovative Business Ideas.
So innovation really lies in how uniquely you solve the problem.
Interstate bus ticket sale sounds hardly exciting and yet REDBUS innovated the selling process in a fairly predictable manner and created a successful company.
Another great example of a marketplace is GOAT- an online sneaker sales company. They picked up a trending niche that was waiting to be aggregated online and created an interesting business model to set up a company that is valued today at 17 B $ today.
There are countless examples out there. The trick lies in how big is the problem you are addressing and how are you innovating.
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