What are the Four Essential Business Models?

When you are considering B2B SaaS you need to understand what is a B2B model first. Though if you are not aware we will provide you examples of all four different types of business models. The business model abbreviation of B2B, B2C, C2B, and C2C can be easily be confusing. So we will break it down, simply, in a way to help you remember.

What is the B2B model?

• Intel, General Electric, and Grainger are real-world instances of B2B’s (some use B2C models too).

B2B is the abbreviation for "business to business." The term contains all companies that develop products and services customized toward other businesses. The process can incorporate SaaS products, B2B marketing firms, and general business supply companies.

If you own a small enterprise, you might need a B2B company at some point. It is essential to understand what B2B is, why it matters to your business, and how to leverage the process to transcend your own company.

What is the B2C model?

• Amazon, Google, and Facebook are real-world instances of B2C’s.
• In the B2C markets, consumer behavior directs sales.
• Market research and customer engagement are essential for B2C companies.

B2C, or business to consumer, is where companies use commerce transactions to sell products or services directly to consumers. Conventional B2C transactions occurred by consumers selecting pay-per-view TV at home, shopping for clothes at the mall, or dinners at a restaurant. More recently, the term B2C has referred to the online selling of products, or e-tailing. The process is where manufacturers or retailers sell their products to consumers over the internet.

Recommended; B2C vs B2B Affiliate Marketing

What is the C2B model?

• Google AdSense and Shutterstock are real-world instances of C2B's services. 
• Market research and audience engagement are essential for C2B companies.

Customer to business or C2B businesses focus on generating value from their customer base by crowdsourcing ideas or soliciting customer feedback. In contrast to the B2C model, the C2B model allows enterprises to extract value from consumers and vice versa. 

C2B's profit from consumers' willingness to name their price or contribute data or marketing to the company. In contrast, consumers benefit from flexibility, direct payment, or free or reduced-price products and services.

What is the C2C Model?

• Online C2C company sites include Craigslist, Etsy, and eBay, which sell products or services through a classified or auction system.

Customer to customer or C2C is a business model that enables customers to trade. These transactions frequently occur in an online environment. Two enactments of C2C markets are auctions and classified advertisements.  

In conclusion, you should now better understand these four business models. Suppose you are in the beginning stages of setting up a business or just needing a refresher on these business model abbreviations. In that case, we at Reditus are happy to have provided you with some value today.

Meet the author

Joran Hofman

Back in 2020 I was an affiliate for 80+ SaaS tools and I was generating an average of 30k in organic visits each month with my site. Due to the issues I experienced with the current affiliate management software tools, it never resulted in the passive income I was hoping for. Many clunky affiliate management tools lost me probably more than $20,000+ in affiliate revenue. So I decided to build my own software with a high focus on the affiliates, as in the end, they generate more money for SaaS companies.