Brianna ParkerEvery company follows a certain business model. The growth and success of a company are based on the business model it follows. Therefore, it is essential for a business model to be diverse and adaptable.
However, there are certain businesses which utilize unusual business models.
The following is a list of 20 most unique business models which have enabled corporations to achieve exponential growth.
20. Paperless Post
Launched : 2008
Founders : James Hirschfeld and Alexa Hirschfeld
Products & Services: Ecommerce Company that provides printed stationary that include Invitations, greetings, wedding suites and birth announcements.
The business model which drove this company became the biggest threat to the U.S Postal Service’s supremacy in 2008. Thanks to its numerous design templates, it encouraged customers to emails their invitations and announcements.
Paperless post continued to evolve and grow by offering free website usage and enabling its customers to design their own cards and send it via snail mail or other electronic methods.
These features ramped up the company’s revenue and inspired new partnerships with other companies like J Crew and Kate Spade.
19. Warby Parker
Launched : 2010
Founders : David Gilboa, Neil Blumenthal, Andrew Hunt, Jeffrey Raider
Products & Services: Online retailing company of prescription glasses and sunglasses
Warby has been an influential figure in the business sector. It transformed the way people shop for spectacles by undercutting the Luxottica special collection and the pricing structure. Initially it started out as an e-commerce venture; however, it quickly became an authority in the eyewear industry.
Warby managed to capture the interest of the customers by offering trendy products at low prices.
18. Stitch Fix
Launched : 2011
Founders : Katrina Lake
Products & Services: Personal Styling Service
Stitch Fix can be termed as a dark horse thanks to its distinctive business model. The company experimented with art and science to launch a one of a kind business in the retail industry.
Initially, Stitch Fix’s targeted urban professionals who wanted fashionable outfits. However, over the years they have started targeting stay at home moms as well.
17. Skillshare
Launched : 2011
Founders : Malcolm Ong and Michael Karnjanaprakorn
Products & Services: Online learning site with educational videos
Skillshare began as a platform where professionals could teach an online class on any given subject. Students only had to pay $20 to $25 for attending the online courses.
Skillshare decided to simplify its pricing structure and developed a $10 per month pricing system.
16. Zady
Launched : 2013
Founders : Soraya Darabi and Maxine Bedat
Products & Services: Retail Company for clothes shopping
Zady has meticulously worked to change the way consumers look at the fashion industry. Their prime focus is on high-quality goods, fast fashion, and environment-friendly products all made in the USA.
Due to its commitment to ethically sourced raw materials, the company has captured the interest of many environmentally conscious consumers.
15. Handybook
Launched : 2012
Founders : Umang Dua, Oisin Hanrahan, Ignacio Leonhardt, and Weina Scott
Products & Services: Online Market for residential cleaning services
Handy changed the way people availed residential, installment, and home cleaning services. Handy became an instant hit among those who conveniently needed residential cleaning and installment services.
It currently operates in 26 cities in the US and has raised about 30 million dollars in revenue. What makes them profitable is the convenience they offer.
14. Popsugar
Launched : 2006
Founders : Brian Sugar, Lisa Sugar, Andy Moss, Jason Rhee, Arthur Cinader, Krista Moatz
Products & Services: American Media Company that provides tips in entertainment, fitness, beauty and food.
Celebrity lifestyle, entertainment, fitness, beauty, food, and fashion. Popsugar covers everything which spikes the interest of millennials. It offers its services through its website, TV, and apps.
The secret to their success is the content they deliver which drives high traffic especially when it comes to entertainment. The company now offers a Popsugar subscription box by acquiring the shopping search engine ShopStyle.
13. NatureBox
Launched : 2012
Founders : Gautam Gupta and Kenneth Chen
Products & Services: Snack Delivery service
Naturebox has by far managed to develop over 120 snack varieties of which 1 million have been shipped worldwide. Most of its consumers are located in the Midwest especially in areas where organic foods are limited.
The company carefully caters the dietary preferences of its consumers. It has become the most recognized healthy substitute in the snack industry.
To spread some early holiday cheer to our friends and family, we’re sharing our best deal on our best snacks! Enjoy 40 snacks in 6 delicious flavors this holiday season! This offer expires on Nov. 18th, so click the link in our bio and use the code NBTHANKS60 #naturebox pic.twitter.com/7v68X6z8bP
— NatureBox (@naturebox) November 16, 2018
12. Hukkster
Launched : 2011
Founders : Erica Bell and Katie Finnegan
Products & Services: Company that tracks products online for users and notifies them
When it comes to shopping, Hukkster provides its consumers with great advantages. Its operating mechanism enables customers to track their desired items.
Hukkster tracks these items through emails and generates substantial revenue when shoppers make their respective purchases. These features help customers save money by wasting fewer resources on their desired items.
11. Zola
Launched : 2013
Founders : Shan-Lyn Ma, Nobu Nakaguchi and Kevin Ryan
Products & Services: Online wedding registry, planner and retailer
Since the inception of Zola, wedding registry has never been the same. Over the years, the wedding registry had become dull and boring. It lacked creativity and originality.
Zola entered the market as the new alternative geared towards millennials, where they could create a registry that offered them extensive freedom. Their team continues to capture the interest of thousands of couples.
10. Hilti
Launched : 1941
Founders : Martin and Eugen Hilti
Products & Services: Company that manufactures products for construction and maintenance
Hilti made an evolutionary stand when it transitioned from a purchasing only model to a transaction based one. They handle the maintenance of their tools which their customers can easily rent. Their customers do not have to access every single tool for their stock.
9. Uber
Launched : 2009
Founders : Travis Kalanick and Garrett Camp
Products & Services: Transportation Network Company
Uber has remained a trendsetter for many businesses in terms of innovation and persistence. Despite the backlash and controversies, the transport service company has gained billions and sought to expand into the logistics markets to experiment with a broader customer base. The convenience, dynamic pricing, and easy accessibility have made it a profitable business.
8. Serengetee
Launched : 2012
Founders : Jeff Steitz, Ryan Westberg and Nate Holterman
Products & Services: Fabric store
The interesting thing about Serengetee is how it was conceived in a place which is connected to a social issue in the region. These causes through personalization caught the attention of customers especially the millennial demographic. This is because the targeted demographic is more in tune with current global causes and invested in social issues.
7. StyleSaint
Launched : 2010
Founders : Allison Beal and Brian Garrett
Products & Services: A fashion media platform that designs and sells designer quality clothing
While it did not begin as a fashion company, StyleSaint did initially start as a self-publishing enterprise where users could form their own “tear sheets.” The same tear sheets were utilized to create the StyleSaint collection which in turn resonated with those in the fashion community.
StyleSaint currently exhibits new collections every week which help them generate substantial revenue. Their business has always been directed towards the customer’s fashion sense.
6. Airbnb
Launched : 2008
Founders : Brian Chesky, Joe Gebbia, and Nathan Blecharczyk
Products & Services: Global Company that provides for the trips and vacation rental experiences
Much like Uber, Airbnb has struggled with its own controversies and legal issues. Despite this, the company has continued to generate high revenues, mainly through collaborative methods.
Airbnb has helped over 4 million travelers and hosted 300,000 listings since its formation.
5. Rent the Runway
Launched : 2009
Founders : Jennifer Hyman and Jenny Fleiss
Products & Services: Online Service that provides designer dress and accessory rentals
Since the advent of social media network, the fashion industry has become more competitive. Every individual wants high-end fashion accessories which are affordable and easily accessible.
Rent the Runway banked this opportunity and targeted the female consumers by offering high-end dresses which look like they were worn by celebrities on the red carpet.
What makes Rent the Runway so unique is the current season offerings, and it’s pricing structure which makes it affordable and easily accessible.
4. Wikipedia
Launched : 2001
Founders : Jimmy Wales
Products & Services: Online encyclopedia
Wikipedia has managed to dominate the online information traffic. Many users who prefer immediate and authentic information can easily access its platform for free. It has managed to outperform its competitors like Britannica and has maintained its supremacy in the online information industry.
3. DubLi
Launched : 2010
Founders : Michael Hansen
Products & Services: Shopping and Travel Service
DubLi has been a leader when it comes to reverse auction. It not only operates on a bid auction model which is distinctive from others, but it also functions with an open network which assists in increasing its traffic.
Customers have taken caution when using auction sites, citing them as inauthentic and fraudulent. But, thanks to DubLi this belief has changed.
2. PatientsLikeMe
Launched : 2004
Founders : Jamie Heywood
Products & Services: Patient Health Service Provider
PatientsLikeMe or PLM has been widely considered as one of the 15 companies which are destined to change the world. It functions as a social networking site which enables users to share their medical issues, including both symptoms and treatment information. It also allows doctors and nurses to access the site to provide their own professional insight.
1. Birchbox
Launched : 2010
Founders : Katia Beauchamp and Hayley Barna
Products & Services: cosmetic Company that provides Haircare and skincare products and services
Birchbox as a beauty startup subscription service has influenced many businesses and startups. Thanks to its expert curation, Birchbox has garnered 71.9 million dollars. This shows how effectively their business model is operating.
Conclusion
There are plenty of unusual and unique business models that have been experimented with and have become successful. However, each business requires a different business model and what might work for a competitor, might not work for at all. The above business models are all great starting points if you’re planning to launch your own startup.
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S.K. Gupta
Ava Abbott
Kevin Johnson
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