What Is Aggregator Business Model?

Aggregator Business Model is a network model where the aggregator

firm collects the information about a particular offering providers,
sign contracts with such providers, and sell their services under its
own brand.
Since the aggregator is a brand, it provides the offering which has
uniform quality and price, even though it is offered by different
partner providers.
The offering providers never become aggregator’s employees and
continue to be the owners of the product or service provided.
Aggregator just helps them in marketing in a unique win-win
manner.
How Aggregators Operate?
Even though aggregators belong to the two-sided marketplaces, they
operate differently from a marketplace business model that powers
the business of Amazon, eBay, etc.
How Does Aggregator Business Model Work?
Theoretical explanation of this model is simple:
1. Aggregator visits the offering providers.
2. Aggregator promises them more customers and proposes a
partnership plan.
3. Service providers are now the partners.
4. Aggregator builds up his own brand and tries to attract
customers through many marketing strategies.
5. Customers make purchases through the aggregator.
6. Partners get the customers as promised.
7. Aggregator gets the commission.
Business
Business is an organization comprising people who strive
together to achieve common objectives and goals. It is
important for a business organization to have a vision that
implies what it intends to achieve in the future and values
that represent the organization’s integrity.
A business organization is a commercial, industrial, or
mercantile enterprise, and comprises the people who
constitute it. Business is a legally-recognized organization
which provides goods, services, or both to the consumers.
According to F. C. Hooper, “The whole complex field of
commerce and industry, the basic industries, processing
and manufacturing industries, the network of ancillary
services, distribution, banking, insurance, transport and so
on, which serve and interpenetrate the work of business as
a whole, are business activities”

Organizations need to create an environment where people want to

work and concurrently develop themselves through coaching,
feedback, and information sharing. A business house should work in
partnership with its employees, customer, suppliers, community, and
the media. In order to enhance the image, it should communicate
the key messages, both internally and externally, and gain
commitment to its principal goals.
A reputed business house often prefers to share its best practices
with its competitors as it believes in networking, partnering, and
informal collaboration. It should even undertake a practice of
rewarding its employees when they perform well. It should establish
a process to learn, grow, and measure its successes. Thus, the
primers of an organization include vision, values,
behaviours/competencies/standards, coaching, information sharing,
networking, rewarding, and continuous learning.
A business organization is a commercial, industrial, or mercantile
enterprise, and comprises the people who constitute it. Business is a
legally-recognized organization which provides goods, services, or
both to the consumers.
In order to develop an understanding of business organizations, one
should be able to identify the differences between the private and
public sectors of the economy, state the traditional examples of
business organizations in the private sector (sole trader, partnership,
and private limited and public limited companies), understand the
difference in terms of liability among these business types, and
identify two non-traditional business types (co-operatives and
franchises)

Business related terms

1) BALANCE SHEET
The balance sheet documents a company’s financial health
at specific points in time, usually at the end of the quarter or fiscal
year. The balance sheet includes assets, liabilities, and equity and
follows the accounting equation:
Assets = liabilities + equity.
The left side leaves you with what you own, whereas the right side
shows what you owe. Your asset values should equal those of your
liabilities and equity.
2) ASSETS
Assets are resources that businesses control, in which the owner
expects assets to generate future cash flow. Examples include
inventory, equipment, and land.
3) LIABILITIES
Liabilities are debts, usually sums of money, that a business owes to
another entity. Examples include expenses payable to suppliers,
accounts payable, and business loans.
4) EQUITY
Shareholders’ equity (SE) tells you a company’s net value if
liquidating assets paying off debts. To calculate shareholders’ equity,
subtract total liabilities from assets:
Shareholders’ equity = total assets−total liabilities
5) INCOME STATEMENT
The income statement shows the business’s performance during a
period, such as throughout the quarter or year. Focusing on revenue
and expenses, the income statement depicts a company’s profit or
loss.
6) REVENUE
Revenue refers to the income generated from a business’s
operations and activities. One way to calculate revenue is by
multiplying the price of an item by the quantity sold.
7) EXPENSE
Expense refers to money spent on utilities, salaries, and raw
materials, and other items that a company incurs operating the
business.
8) PROFIT
Also known as “net income” or the “bottom line”, your profit shows
the difference between what a business earns and spends. Calculate
profit earned by subtracting total expenses from total revenue.
Profit = total revenue - total expenses
9) NET LOSS
Using the profit equation, you can calculate a business’s net loss, or
when total expenses exceed total revenue and the difference is
negative.
10) CASH FLOW STATEMENT
A cash flow statement measures the cash generated (inflow) or used
(outflow) by a company in a given period. Classify cash flow under
operating, investing, or financing activities.
11) PROFIT MARGIN
Three types of profit margins are gross profit, net profit, and
operating profit margin. Calculate your profit margins by dividing
profit by revenue. Profit margins show a company’s growth potential
and answer how much of each dollar of sale generates into profit.
Profit margin = (profit / revenue) x 100%
Note: more revenue does not always translate to higher margins and
more profit kept from sales.
12) RETURN ON INVESTMENT (ROI)
Return on Investment (ROI) is a ratio measuring performance
efficiency relative to how much a company spent on investments.
Calculate ROI by dividing net profit from the investment cost.
ROI = (net profit / investment cost) x 100%
13) VARIABLE COST
Variable costs change proportionally to production. For example, the
cost of raw materials increases with the number of units purchased.
14) FIXED COST
Unlike variable costs, fixed costs stay the same regardless of changes
in production. For example, a company pays the same amount in
monthly rent.
15) CASH FLOW
Cash flow is a measure of the amount of cash generated (or lost)
through a businesses's operations. It's different than net profit, as
net profit includes non-cash expenses (such as depreciation), and
excludes some uses of cash (such as capital expenditures for new
equipment, or repayment of outstanding debt).
16) BUSINESS TO BUSINESS (B2B)
B2B transactions take place when a company sells goods or services
to another company.
17) BUSINESS TO CONSUMER (B2C)
B2C transactions occur when a company sells goods or services to
end-users.
18) BEST PRACTICE
Best practices are accepted as standard methods for executing a task
for how they most effectively produce results.
19) DECK
This term is commonly used to describe a PowerPoint presentation.
You could think of it as a “deck” of PowerPoint slides.
20) DELIVERABLE
A deliverable is a final product given to the client at the end of a
project. A deliverable can include decks, research, and financial
models.