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How companies make money: 12 business models.
Almost every big company makes money one of a few ways. Here they are, with real companies and what each one keeps of every $100, from their annual reports.
01
Selling ads.
The product is free; advertisers pay to reach the people using it.
Together these 5 companies took in $616 billion and kept $193 billion: $31.34 of every $100.
Kept per $100 of sales, latest annual report.
02
Subscriptions.
Customers pay every month or year, so money keeps coming in without a new sale each time.
Together these 7 companies took in $426 billion and kept $156 billion: $36.70 of every $100.
Kept per $100 of sales, latest annual report.
03
Franchising.
Other people own and run the stores; the brand collects royalties, rent and fees.
Together these 6 companies took in $53.0 billion and kept $12.2 billion: $23.00 of every $100.
Kept per $100 of sales, latest annual report.
04
Taking a cut.
The company runs the marketplace and keeps a percentage of every ride, stay, order or sale.
Together these 8 companies took in $140 billion and kept $25.2 billion: $18.03 of every $100.
Kept per $100 of sales, latest annual report.
05
Payment networks.
Every card swipe pays a small fee to the network that moves the money.
Together these 4 companies took in $153 billion and kept $54.5 billion: $35.61 of every $100.
Kept per $100 of sales, latest annual report.
06
Fees on other people's buildings.
The hotel company manages or franchises hotels that other people own and charges fees.
Together these 2 companies took in $38.2 billion and kept $4.1 billion: $10.62 of every $100.
Kept per $100 of sales, latest annual report.
07
Low prices, huge volume.
Thin profit on each sale, made up for by selling an enormous amount.
Together these 7 companies took in $1.56 trillion and kept $58.2 billion: $3.72 of every $100.
Kept per $100 of sales, latest annual report.
08
Hardware plus services.
Sell the device once, then keep earning from what people do on it.
Together these 3 companies took in $576 billion and kept $136 billion: $23.61 of every $100.
Kept per $100 of sales, latest annual report.
09
Renting out computers.
Companies rent servers, storage and AI instead of buying their own.
Together these 4 companies took in $1.52 trillion and kept $361 billion: $23.74 of every $100.
Kept per $100 of sales, latest annual report.
10
Selling chips.
Design the chips that go into phones, PCs, cars and data centers.
Together these 5 companies took in $410 billion and kept $161 billion: $39.20 of every $100.
Kept per $100 of sales, latest annual report.
11
Lending and banking.
Earn interest on loans and fees on accounts, cards, trading and advice.
Together these 4 companies took in $438 billion and kept $126 billion: $28.81 of every $100.
Kept per $100 of sales, latest annual report.
12
Selling brands.
Own the brands, make or outsource the product, and sell through stores.
Together these 6 companies took in $295 billion and kept $43.3 billion: $14.66 of every $100.
Kept per $100 of sales, latest annual report.
Industries.
How airlines, banks, streaming services and more make money.