Innovation has been a constant through the ages. New products that satisfy a need or simplify a process are constantly brought to the consumer’s attention. Lately, there has been a surge in the use of the internet to sell products or services in India as well. It is interesting to note the unique business models that these internet based companies (both e-commerce or SaaS) have adopted to monetize these ventures and boost the bottom line.
The most common model would probably be the “one time” purchase model. In this model, a customer, browses through your inventory on the computer and makes a purchase. A good example of this would be FlipKart. They allow payment methods such as cash on delivery, credit or debit card transactions, net banking, e-gift voucher, and card swipe on delivery.
Recurring models have grown in popularity. Here, the consumer is charged either on a monthly, quarterly or annual basis. (these options are the most common, but there are cases of fortnightly charges). Startups like this model, as a single recurring sale gives them a longer revenue cycle. Both product based and service based companies use this model. Curiositi, has a kit for kids, that will be sent to your home each month. This box contains educational activities that are related to what your child is currently studying at school and helps take the drudgery out of learning.
When it comes to companies selling Software as a Service, they are not even Geographically limited. There is little difference in selling their service to a business in Bangalore or in Boston! Freshdesk, is a case in point, they started their operations with India and then moved to the US.
There are some companies that sell their online services on a commission basis. Commission is charged on a one time or monthly or annual basis. Sometimes these commissions are on a reducing scale. So, Year 1 is at 5%, year 2 at 3%, tapering down to 1% in Year 3 and continuing on at 1% henceforth.
Talent Auction launched its portal with an innovative approach to hiring. Instead of candidates running after employers, it lets employers run after top talent. They charge a commission fee as a percentage of candidate’s annual CTC is then charged from the employer for successful hires.
Usage based businesses are another model. A great example would be the Bangalore Elevated Tollway – which is actually an example of where a recurring as well as pre-paid monetization model is being used successfully to meet the needs of two segments of people. One who use the elevated tollway for their daily commute to work (recurring model) – and others who used only as needed (e-Purse).
All of the above models have proven successful, not only due to their ingenuity but also because they are supported by SaaS based Billing software.
A billing service needs to be flexible to support the various business models. It needs to be easy to use. Startups don’t want to waste their time trying to figure out a complex billing structure. In this day of a global business, billing needs to be supported in multiple currencies. Commission models, are a definite plus.
BluSynergy India, is a billing solution that understands these concepts and can work with your unique business needs. BluSynery has been offering services to companies in India since 2014. In a very short time frame, BluSynergy has forged relationships with various banks and payment gateway partners in order to provide our customers with the solutions they need. This aspect differentiates BluSynergy from other companies in general, who would rather see a particular solution for their clients.
Disclaimer: Some of the companies mentioned above are clients of BluSynergy.