Businesses work in many different ways depending on who they sell to and how they deliver value. These business models have unique setups and rules, but they all share one goal: meeting the needs of their customers. Here’s a breakdown of the most common business models:
B2C (Business-to-Consumer)
This is when a business sells directly to individual customers, like you or me. The focus is on products or services people use in their everyday lives.
- Examples: Online clothing stores, grocery shops, restaurants.
- Key Features: Quick buying decisions, lots of customers, and products made for personal use.
B2B (Business-to-Business)
B2B is when one business sells to another business. Instead of selling to individuals, they provide things that help other businesses operate.
- Examples: A company that makes office supplies selling to other companies, or a software provider selling tools to businesses.
- Key Features: Fewer customers, bigger orders, and longer decision-making processes.
B2B2C (Business-to-Business-to-Consumer)
This model is a mix of B2B and B2C. A business sells its products to another business, which then sells them to individual customers.
- Examples: A coffee company sells beans to a café, and the café uses them to make coffee for customers.
- Key Features: Two layers of customers—the business buyer and the end user.
D2C (Direct-to-Consumer)
In D2C, businesses skip the middleman (like stores) and sell directly to customers. This gives them more control over their products and customer relationships.
- Examples: A shoe brand that only sells through its website, or a subscription box service like meal kits.
- Key Features: Personal relationships with customers and full control over branding and sales.
C2C (Consumer-to-Consumer)
C2C is when individuals sell directly to each other, usually on platforms that connect buyers and sellers.
- Examples: People selling handmade crafts on Etsy or used items on eBay.
- Key Features: Peer-to-peer transactions and trust between users.
C2B (Consumer-to-Business)
This model flips the usual roles. Here, individuals sell their services or products to businesses.
- Examples: A freelance graphic designer working for a company, or a photographer selling stock photos to a business.
- Key Features: People offering value to businesses, often through their skills or creations.
B2G (Business-to-Government)
B2G is when businesses provide goods or services to government agencies. These deals often involve long processes and strict rules.
- Examples: A construction company building a public school or an IT firm providing software to a city government.
- Key Features: Large contracts, long timelines, and working with public institutions.
Why knowing the model matters
Every business model is different, and that means the way companies market, set goals, and measure success—using the right KPIs—is different too. For example, a B2C company might care most about how many people buy their product right away, while a B2B company might focus on building long-term relationships with fewer customers.
Even within the same model, the size of a company can change everything. A small bakery selling cupcakes will work very differently than a global chain, even though both are B2C. A small B2B company might focus on personal connections, while a big one might need teams and tools to manage complicated deals.
Understanding your business model—and how it changes as your company grows—helps you choose the right marketing strategy and focus on the KPIs that really matter.