Sales Glossary > Business Model

Business Model

Business model refers to the way a company is making a profit.

The choice of the business model usually is based on the products or services a business is going to sell as well as its target market.

There are two main business models:

  • Business to consumer (B2C) is a model where businesses sell their products or services directly to their end-users (consumers).
  • Business to business (B2B) is a model where a business sells its products or services to another business rather than an individual consumer.