Jun 08 2010
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types of software businesses
Software businesses basically do the same thing: convert code into $. But there are different types of business models (“ways they get paid”). Here are a few examples:
- Tools (e.g., Oracle, MSFT)
- Services (e.g., 37signals, WebEx)
- Media (e.g., Google)
- Market / Brokerage (e.g., eBay, etsy)
- eCommerce (e.g., Amazon, Zappo’s)
This list needs refinement — for example, seems like there is overlap between tools and services. (Also, where would a consumer product company like intuit go?) Are there other categories to add?
If this is a useful categorization, how are these types of businesses different? What are the success factors? For example, as Jeremy Liew notes, online media businesses are all about scale.
