Which one to choose

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Business model. A product can be packaged in several different business models. One-time sales are certainly the most popular way for product-based companies to monetize, but not the only way. For example, software can be sold in a subscription model or by Industry Email List charging users on a pay-per-use basis, which is how companies that offer cloud solutions work.
Marketing. It seems easier for product-based companies to build strong brands that attract loyal customers with deep pockets. In this segment, we are more likely to find companies offering luxury goods. Expensive cars, exclusive handbags, and beautiful watches – these are all examples of products that can cost hundreds of thousands of dollars and do not always offer higher quality than their cheaper competitors. The added value is marketing.
Transitioning from service to product
When you enter the market as a service-based company, you don’t have to stay that way forever. You can successfully change your business model and expand your business to sell products. We are seeing more and more of this in the marketplace. Netflix, which used to only offer other companies’ productions, is now producing its own movies and series.

Product-based



Summary
To summarize the article, here are four questions to help you decide between a service-based company and a company that sells products. It’s a good idea to ask yourself the following questions and jot down the answers on a piece of paper.

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Product-based vs. service-based company.