An ecosystem business model sets out how a group of partners create value together and how that value is shared. It covers who does what, how money flows and why each partner keeps taking part. A firm’s own business model covers only that firm.
Table of Contents
Key factors
- A fair split of value. Partners stay only while they earn enough from taking part. A lead firm that keeps too much sees them stop investing.
- An offer for partners as well as customers. The model needs a second promise, telling developers, sellers or suppliers what they gain, such as access to customers and a fair way to earn.
- Changing the parts together. Creating, delivering and capturing value are linked across partners, so a change to one, such as a new fee, ripples through the rest.
- Who owns it. A single owner decides quickly. A consortium, such as banks running a shared payment system, decides more slowly but persuades rivals to join.
Examples
Epic Games. Epic’s game store keeps 12% of each sale, against the 30% long standard elsewhere. From June 2025 it took nothing on a developer’s first $1 million a year per app. Epic gives up revenue now to win games that bring players. It can afford to, because it also earns from its own games, such as Fortnite, and from licensing its Unreal Engine.
Substack. Substack keeps 10% of what readers pay writers, who keep the rest after card fees. It provides the publishing tools, payments and a network where writers recommend one another. Writers stay because the split leaves them most of the money. In March 2025 Substack reported more than 5 million paid subscriptions.
Frequently asked questions
What is the difference between an ecosystem business model and ecosystem architecture?
Architecture is the structure: the roles, modules and interfaces that connect partners. The ecosystem business model adds the money logic, explaining how that structure creates value and how the value is shared.
How is an ecosystem business model different from a normal business model?
A normal business model explains how one firm creates and captures value. An ecosystem business model also explains how value is shared, so that every partner has a reason to stay.
What does an ecosystem business model include?
The joint offer to customers, the role each partner plays, how revenue and costs flow between them, and the rules for sharing the value that results.
Who designs the ecosystem business model?
Usually the orchestrator, the firm at the centre. Partners still shape it, because they leave or push back when the split looks unfair.
Can a small company have an ecosystem business model?
Yes, if it relies on partners to deliver what it sells. A small software firm that depends on integrators and app partners needs a model that pays them, even if it never runs a platform.
Related concepts
Ecosystem Value Proposition
Value Capture
Ecosystem Value Creation