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Flat Rate 15#
In this model, a single fixed fee for a product or service is charged, regardless of actual usage or time restrictions on it. The user benefits from a simple cost structure while the company benefits from a constant revenue stream.
Examples: Iconic Cases
How they do it: LinkedIn limits the use for regular users. They still have access to a wide range of functions but are limited in certain factors. E.g. the possibility to search other profiles is capped for free users. Premium users who pay an annual or monthly fee however can search for other profiles without limit.
Learn more about LinkedIn →
How they do it: Netflix’s customers pay a monthly subscription fee, allowing users to consume an unlimited amount of content on the platform.
Learn more about Netflix →
How they do it: With Porsche Passport, announced in 2018, customers do not purchase a car, but obtain access to a vehicle via the monthly subscription. It consists of an all-access subscription for $2,000 to $3,000 per month and includes a variety of car models (e.g. two-door and four-door models), from which the customers may flexibly choose a model of their liking.
Learn more about Porsche →
How they do it: On Spotify, users are unable to purchase individual songs or albums. Rather, they gain access to all songs on their platform for a flatrate, monthly fee.
Learn more about Spotify →
How they do it: Already in 2000, Verizon introduced nationwide, flat-rate pricing options for consumers and businesses. Today, Verizon customers can subscribe to an unlimited plan (voice, data and text) for as little as $40 per month.
Learn more about Verizon Communications →
Below, the top industries for the pattern "Flat Rate" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 8 firms using this pattern.
Top Industries
Entertainment
25% of firms using pattern
25% of firms using pattern
Services
16% of firms using pattern
16% of firms using pattern
Information Technology
10% of firms using pattern
10% of firms using pattern
All Industries
Below, the pattern "Flat Rate" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
Subscription
2 pattern co-occurrences
2 pattern co-occurrences
Digitization
2 pattern co-occurrences
2 pattern co-occurrences
Affiliation
1 pattern co-occurrences
1 pattern co-occurrences