Business theory can be tricky to understand. Leave it to the power of one cow to help you grasp the workings of these popular business models.

The Direct Sales Model

A direct sales business operates through a network of salespeople. Typically there is no fixed retail location.

Examples: Avon, Mary Kay, Traveling Vineyard

The Freemium Model

A business under a freemium model gives away a service at no cost before offering advanced services as add-ons.

Examples: Dropbox, Hootsuite, MailChimp

The Subscription Model

The objective of a subscription business model is to retain customers under a long-term contract and secure recurring revenue.

Examples: Netflix, eHarmony

The Franchise Model

Under a franchise business model, business owners purc...