One goal, five different systems.
A business model explains how a company creates value and earns money from it. Some companies sell products once, some collect regular payments, and others take a small fee each time people use their platform.
Product sales
A company earns money by selling a physical or digital product to a customer.
Customers pay Apple directly or purchase Apple products through retailers and phone carriers.
Products such as iPhones, Macs, iPads, AirPods, Apple Watches, accessories, and other devices.1
They value Apple's design, features, ease of use, brand, and the connection between its products and services.
A successful product can generate significant revenue through many individual sales.
Developing, producing, marketing, and distributing products is expensive. Demand may fall if customers delay upgrades or choose competitors.
An iPhone purchase may lead to later purchases of AirPods, an Apple Watch, accessories, apps, or paid services.
Subscriptions
Customers make regular payments to continue accessing a product or service.
Members pay monthly for access. Advertisers also pay Netflix to reach viewers on its ad-supported plans.
Netflix offers access to movies, shows, games, and other entertainment through different plans.2
They receive convenient access to a large selection of entertainment across different devices.
Recurring revenue makes future income easier to predict than relying only on one-time purchases.
Customers can cancel when prices feel too high or the content feels less valuable. Netflix also spends heavily on entertainment.
A member keeps paying until they cancel, and Netflix can earn more when a member chooses a higher-priced plan.
Membership fees
Customers pay a regular fee for access to special products, prices, or benefits.
Costco members pay an annual membership fee.
Costco collects fees when customers join and renew their memberships each year.3
Members expect Costco's prices, product selection, and benefits to save them more than the membership costs.
Membership fees provide recurring revenue and encourage customers to keep shopping at Costco.
Customers may not renew if they no longer believe the membership offers enough value.
Costco earns the membership fee and can also earn merchandise revenue whenever that member shops.
Advertising
Businesses pay to show advertisements to people using another company's platform.
Advertisers pay Google to promote their products and services.
Google earns advertising revenue from services including Google Search, YouTube, and its advertising network.4
Google helps businesses reach large audiences and connect with people who may be interested in their products.
Advertising allows Google to offer many services without directly charging every user.
Revenue can fall if advertisers spend less or users interact with fewer ads.
When someone searches or watches YouTube, Google can show relevant ads. Advertisers may pay based on views, clicks, or other campaign results.
Transaction and service fees
A company earns money by charging a fee when it helps complete a transaction.
Riders pay for trips and customers pay for deliveries. Drivers, couriers, restaurants, and other partners may also pay service fees.
Uber earns revenue from rides and deliveries arranged through its platform, including service and booking fees.5
Uber makes transportation and food delivery convenient and easy to access through an app.
Uber can earn money from completed transactions without owning most of the vehicles or restaurants involved.
Revenue may fall when fewer people book rides or deliveries, and Uber competes with other platforms.
Every additional ride or delivery creates another opportunity for Uber to collect a fee.
The easiest way to tell them apart.
| Model | Payment happens when... | Example | Main strength |
|---|---|---|---|
| Product sales | A customer buys a product | Apple | Revenue from each sale |
| Subscriptions | A customer pays regularly for access | Netflix | Predictable recurring revenue |
| Membership fees | A customer pays to join or renew | Costco | Revenue plus stronger loyalty |
| Advertising | An advertiser pays to reach users | Services can remain free for users | |
| Transaction fees | The platform completes a transaction | Uber | Revenue grows with platform activity |
Many successful businesses combine several models. Apple sells products and services, Netflix combines subscriptions with advertising, and Uber uses multiple fees across its platform.
Research behind this guide.
BusinessScope used official company filings and investor materials. The explanations and comparisons are original educational summaries.
- AppleAnnual reports and SEC filingsinvestor.apple.com ↗
- NetflixAnnual reports and proxy statementsir.netflix.net ↗
- Costco WholesaleAnnual reports and proxy statementsinvestor.costco.com ↗
- AlphabetInvestor relations and annual reportsabc.xyz/investor ↗
- Uber TechnologiesFinancials and annual reportsinvestor.uber.com ↗
Sources accessed September 2026. Company names and trademarks belong to their respective owners. No affiliation, sponsorship, or endorsement is implied.