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There are various digital business models (Talin, 2022) to choose from depending on the customers

and the unique value proposition you are aiming for. Some indicative examples are:

a) Free-Model/ Ad-supported Model: it is based on providing a free service that is “financed” by
the promotion of adverts and the collection of personal data. Facebook and Google are two

famous examples of companies that use this model (Lambrecht et al, 2014).

b) Freemium Model: the users get free access to a basic – free – version of the product which sets
limitations to its full operationalisation. If the users want to use more features or resources, then

they have the option to upgrade to the paid – premium – version (Kannan & Singh, 2021).

c) E-Commerce Model: it is based on selling physical products via an online shop (Kannan & Singh,

2021)

d) Marketplace Model: the sellers and the buyers use a 3rd party platform to trade their goods
and services. This model is identified with several different names such as peer-to-peer or two-

sided marketplace (Huynh et al., 2020).

e) Access-Over-Ownership Model / Sharing Model: it allows customers to pay for a product for a
set amount of time without really owning it. Examples of such transactions include renting a car

or an apartment (Ozdemir, G & Turker, D. 2019).

f) Subscription Model: users get access to a service, such as a streaming platform, on a

monthly/annual basis (Kannan & Singh, 2021).

Business Canvas and Business Model You for Digital Enterpreneurs

Digital Business Models can be better understood if you try to put the theoretical knowledge into

practice. The practical implementation of theory is possible through the use of business tools. The

Business Model Canvas and the Business Model You for Digital Entrepreneurs are two examples of

tools of such nature. The use of the canvas presented in Figure 2 can lead to insights about the
customers you serve, what value propositions are offered through what channels, and how your

company makes money (University of Oxford, n.d.). You can also use the business model canvas to

understand your own business model or that of a competitor.

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