business model

Model a company uses to plan the conduct of its business and revenue streams. Business models came under the spotlight during the boom in Internet companies. Many such companies were operating with business models that relied on advertising revenue to support their other activities. Although this is the business model adopted by most magazines in the physical world, it has proved difficult to sustain as a business model on the Internet. Another common business model is the retail business model where goods are sold at a margin sufficient to make a profit.