Not too many people know this but when co—founders Andrew Kortina & Iqram Magdon-Ismail were thinking of developing the Venmo business model, they thought of it as a platform to share music. The name was derived from Latin phrase “vendere” that means “sell” & mo stood for “mobile”. The prototype on how does Venmo work was made to pay the amounts via text messages. Pretty soon their inboxes became full of these texts & they realized that their inboxes started to look like a news feed of what they were doing the whole time because it had details of payment followed by a short note of what the payment was made for. This was the idea behind developing the Venmo – a social & digital platform where people could send & receive money & leave cute notes. The idea was to make payments faster and make them sound like conversations. However exciting the idea was, they never received any money from the investors. Thus a friend & his father lend them some money to work on it & this is howthey launched Venmo.
Years down the line, Venmo has now become a hippie thing to do. It has become a phrase. People no longer say the words like payment or pay, instead they say “just venmo me”. With Venmo, you can transfer money with just a few taps. No need to rush to a nearby ATM vestibule or write a check that would take days to get cleared. All you got to do to pay or receive money is to use Venmo & that would suffice the answer of how does Venmo work? The difference between other payment merchants & the Venmo is that there is a social feed which shows posts about who paid whom among your friends. It also shows the cute notes with emojis that your friends wrote & moreover, you can comment on it as well. One can make the payments private & thus nobody will know what you paid to whom, but apparently youngsters like their friends to know about it.
Facebook is a social media platform business model.
LinkedIn is a human resources platform business model.
Well, the creation of a business model is not just about determining which products you need to pursue.
It is also not about making a business plan, but all about figuring out how will you develop an ongoing business value for your customers.
Always remember that a strong business model should also see additional ways to add value to your business.
