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Financial Literacy Club

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Understanding Businesses · Lesson 7

Business Models

Part A. Guided notes

Fill in each blank using the word bank.

Word bank: audience · cancellations · company · different

  1. Business model = how a makes money.
  2. Subscriptions → watch . Marketplaces → need both sides.
  3. Advertising → you're the being sold.
  4. Same product, model, different risks.

Part B. Check your understanding

Circle the best answer.

  1. An app connects dog owners with local dog walkers and keeps 20% of every booking.

    1. What business model is this?

    • A. Marketplace
    • B. Razor and blades
    • C. Franchising
    • D. Retail
  2. A printer company sells printers below cost but earns high profits on ink cartridges.

    2. What model is this?

    • A. Advertising
    • B. Subscription
    • C. Marketplace
    • D. Razor and blades
  3. 3. For a subscription business, keeping existing customers is usually just as important as finding new ones.

    True/False

Part C. Apply it

Show your work.

  1. 1. A subscription app has 10,000 subscribers at $8 a month. It loses 5% of subscribers in a month and gains none. How many subscribers and how much monthly revenue does it have now?

  2. 2. Why does a marketplace business need both buyers and sellers?

Part D. Think about it

Answer in complete sentences.

  1. 1. Pick an app you use for free. How does it make money?

  2. 2. Would you start a subscription business or a marketplace? Why?

Exit ticket

Name

What is a business model?