Overview
The core product is priced competitively, but the real money's in the extras. Customers get flexibility, but often end up paying more than they initially thought. It's a classic bait-and-switch, but with a veneer of customization.
Examples
- Airlines charging for baggage and seat selection
- Car dealerships offering extended warranties
- Fast food restaurants upselling combo meals
- Software companies selling premium features
- Mobile phone carriers offering data add-ons
How to cite
Faster Than Normal. “Add-on Business Model.” fasterthannormal.co/business-models/add-on. Accessed 2026.
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