Platform Business Models

Platform business models are systems that connect users, such as buyers and sellers, to create value through their interactions. Unlike traditional businesses that produce goods or services, platforms facilitate exchanges or collaborations among users. Examples include online marketplaces like Amazon, where buyers find products from various sellers, or social media sites like Facebook, where individuals share content and connect with others. The platform earns revenue through fees, advertising, or subscriptions. By leveraging network effects, as more users join, the platform's value increases, benefiting everyone involved.