Introduction to the Metrics

👋 Welcome to Bizmodel Breakdown!

Hey there! I’m Aarav, and I’m thrilled to welcome you to the first-ever issue of Bizmodel Breakdown — your bi-weekly breakdown of the world’s most fascinating business models.
If you're a founder, builder, strategist, or just someone who loves understanding how businesses tick — you're in the right place.

Before we dive into our first breakdown, let me walk you through how we’ll rate and review each business model, and what metrics actually matter when judging how strong (or weak) one really is.

🧩 The Bizmodel Breakdown Framework

Every business model is different — but to evaluate them fairly, we need a clear lens. So here are the 5 key metrics we’ll use to score and compare them:

📈 1. Revenue Model

We look at how money flows in.
– Is it one-time or recurring?
– Does it rely on subscriptions, transactions, licensing, or usage?
– Is it diversified, scalable, or overly dependent on a single channel?

🎯 2. Customer Acquisition Strategy

We explore how the model is designed to bring in users or customers.
– Does it rely on paid acquisition, viral loops, content, partnerships?
– What’s the CAC (customer acquisition cost) and is it sustainable?

🔁 3. Retention & Lifetime Value

Some models are built to keep customers for years — others churn in months.
– What’s the customer lifetime value (LTV)?
– Is the model naturally sticky or does it need constant re-acquisition?

🧠 4. Scalability

Can this model grow 10x without breaking?
– Are there operational bottlenecks?
– Is growth limited by geography, talent, supply chain, or regulatory hurdles?

🛡️ 5. Moat & Defensibility

A great model doesn’t just work — it stays strong over time.
– Are there barriers to entry, network effects, or proprietary advantages?
– Can this be copied easily or is it protected?

🔍 Ratings Breakdown

Each business model we cover will get a score (out of 10) for each of these five metrics — plus an overall rating.

But we’re not stopping at scores.

💡 Practical Improvements & Ideas

Each issue will also feature specific suggestions to improve or tweak the model.
That might mean new monetization ideas, retention strategies, or smart pivots. It's insight you can actually use — whether you're building, investing, or just curious.

👀 What to Expect Next

Now that we’ve got the system in place, get ready:
Every two weeks, we’ll break down a different type of business model — from marketplaces and freemium models to licensing plays, aggregator strategies, and more.

We’ll ask:
– What makes it work?
– Where are the cracks?
– How could it be better?

Thanks for joining the breakdown,
— Aarav
Founder, Bizmodel Breakdown