Business model and business niche What is the difference? Building any startup or business you should clearly understand the difference between business model and business niche. A lot of people don't realize in what kind of business they are. For example, people think that Uber is a taxi service. But Uber has a marketplace business model that generates leads for taxi drivers. AirBnb is the same. It's a marketplace that generates leads for apartment owners. So, the business model, it's 'how you earn money'. (subscription, pay-as-you-go, marketplace, service, etc.) Business niche is 'what you are selling and to whom'. Examples: Youtube has an advertisement business model and video hosting niche, and Salesforce has a SaaS business model and CRM niche. All eCommerce has a transactional business model, marketing agencies have a service business model, etc.