Other models

While subscription and marketplace models dominate digital businesses, several other powerful approaches exist:

• Direct sales models generate revenue through one-time product transactions, providing immediate cash flow and clear value exchange
• Fee-for-service businesses monetize specialized expertise and time, allowing professionals like consultants and lawyers to scale their knowledge
• Lease and rental models transform capital expenditures into operational expenses, providing customers flexibility while ensuring recurring revenue
• Insurance models pool risk across many customers, collecting regular premiums in exchange for financial protection against specific events
• Advertising models generate revenue by offering free or low-cost products while monetizing user attention through sponsored content, display ads, or brand partnerships
• Franchising leverages proven business systems to rapidly expand through third-party operators while maintaining brand consistency
• Pay-as-you-go models align costs directly with consumption, enabling precise billing for utilities, cloud services, and other metered offerings^[1]

Understanding these alternatives helps product managers identify opportunities beyond common digital models.