5 Proven B2C Revenue Models for Healthcare Startups

In today's crowded healthcare market, having a standout product is just the start. For sustained growth, startups must balance their need for steady revenue to scale with evolving consumer needs, competition, and compliance. As more companies develop consumer-focused solutions around wellness, care planning, and personalized health, putting users first is more important than ever.

Because healthcare products must balance accessibility, trust, and compliance, founders need to think carefully about how their model supports both user experience and long-term sustainability. Choosing the right revenue model comes down to a few key factors, like target audience, service type, and operational costs. Here are five standard B2C models that founders can consider, along with the types of companies each one tends to work for best.

1. Freemium + Subscription Tiers

Startups looking to reach a wider audience should consider freemium and subscription tiers. The freemium approach combines both free and paid subscription options, while a premium model requires users to pay for access from the start. In short, freemiums allow users to test a product or service before becoming a paid subscriber, while premiums do not. Ali Chappell, PhD, RD, Co-Founder and CEO of Lilli Health, recently launched the Lilli app, which offers introductory content for free alongside premium tiers that unlock more comprehensive education, meal plans, recipes, symptom and lab tracking, and menstrual cycle tracking.

One of their first steps in shaping this revenue model was identifying how Lilli fits into the broader wellness app market and how it can stand out among competitors. “If you're going to be a direct-to-consumer company, you need to know how you are going to differentiate your app in a sea of other wellness apps, and how you can get that regulatory approval that then puts a moat around you and provides that validation to providers,” she explained.

They also prioritized affordability. “We wanted this to be very accessible and priced so that it could eventually qualify for insurance reimbursement,” Chappell shared. For context, Noom’s monthly subscription costs $70 per month but does not include some of the tracking and lab features available in Lilli.

2. Usage-Based Billing

Usage-based billing is another commonly adopted revenue model among many startups, such as AI medical scribe companies. In B2C healthcare, this might look like charging based on the number of documents stored, minutes of audio or video captured, or care directives generated.

For consumers who value fair pricing and transparency, usage-based billing provides the visibility they’re looking for. However, it can make financial forecasting more difficult, because it lacks the predictability of standard subscription models. There’s also a risk of losing high-usage customers if fees increase too quickly.

From a business standpoint, usage-based billing can be quite profitable. According to Abacus, the consumption economy is booming, with usage-based pricing models seeing 38 percent higher net revenue retention rates compared to traditional subscription models. In many ways, this demonstrates how usage-based billing is not just a pricing tactic, but a fundamental shift in customer economics.

3. Partnership‑Driven Licensing (B2B2C)

With a partnership-driven licensing model, often referred to as B2B2C, a startup licenses its platform to insurers, aged-care providers, or employers, who then subsidize or fully cover the cost for their members or employees.

A partnership-driven model works well for concierge platforms and wellness and preventive care apps, and can provide a more predictable and sustainable revenue stream when serving large user bases. However, sales cycles tend to be longer. Companies that license their platform also have less direct interaction with end users, which can limit opportunities for upselling and feedback. This model is something that Chappell and her team are considering, pending their FDA clearance. She explained, “We have clinical data showing the time to conception for patients who do want to conceive, and there is the potential of going to employers and saying that this is an option for employees who either have PCOS or are trying to conceive because they have PCOS.” Another B2B2C partnership they are exploring is with fertility benefit companies, as the services and software Lilli Health provide can help improve IVF success rates and reduce overall treatment costs. “Fertility benefits companies have a vested interest in helping people have more successful IVFs so patients are not paying double for multiple IVF cycles,” she added.

4. Add‑On Services and Microtransactions

Add-on services and microtransactions occur when a company charges small fees for premium support, quicker service, or specialized legal/medical reviews. For users, this means they can personalize their experience without committing to a full subscription.

Founders considering this model should focus on designing a user experience that delivers clear value; otherwise, users may feel ‘nickel and dimed,’ become less engaged overall, or switch to a competing platform. This model works well for AI-driven health apps and digital wellness services like Headspace, Calm, and Noom.

A strong example of this in practice is Tily Blooms, a company whose main product is a patent-pending rounded tip syringe and complete insemination kit that includes everything a person needs to complete two home inseminations.

After finding success selling the kits on Amazon as a way to test the market, Tily Blooms expanded its offerings by introducing add-ons as a way to continually educate consumers around this method of getting pregnant and to take away the stigma. Add-ons include digital products such as a fertility tracking journal, a gratitude journal, and a fertility handbook, among others.

Introducing these digital products has served a dual purpose. Tily Blooms COO, Laura Allen, explained how these add-ons not only serve as a way to generate more money, but they also speak to the company’s mission to make the pregnancy journey easier for many individuals trying to conceive.

She shared that their goal in creating these add-ons is to "take away stigma and the worry about it being an invasive treatment or clinical, but also just providing information to anyone who's looking to try this method."

5. One-Time Licensing or Lifetime Access

One-time licensing or lifetime access models are less common in pure B2C, but they remain a viable option for users who prefer a single upfront purchase over ongoing fees. Subscriptions, while predictable, may not always make sense for users seeking one-time value or short-term use. Given that there won't be recurring revenue per user, startups will benefit from keeping their backend costs low.

According to a study from Grand View Research, the personal health record app segment, which includes both one-time access and lifetime purchase models, is estimated at 2.6 billion dollars in 2024, with projections showing that number nearly doubling by 2030.

Insight Timer and Sleep Cycle are two examples of companies that provide lifetime access options to meet this demand.

For Chappell, lifetime access for the Lilli app is something they are considering, although right now they are focusing on finding their perfect price point. She shared, “We're still iterating and determining what we think is going to be the best pricing, but I could see how patients would rather just pay one fee for lifetime access.”

Where Many B2C Healthcare Startups Go Wrong

Even with a strong product, many B2C healthcare startups struggle to convert users when their revenue strategy falls short.

One common misstep is the use of overly complex pricing structures, which often involve multiple add-ons and hidden fees. Michelle Gomes, CEO and Co-founder of Evaheld shared that this usually frustrates users and ultimately stalls sign-ups.

Instead, Gomes recommended transparent, value-led pricing as the better approach. "Clear feature differentiation and ROI communication accelerates conversion from free to paid plans," she said.

Another trap is relying too heavily on ad-sponsored models. These can undermine trust in health-focused products and dilute the overall user experience. In contrast, content- and community-driven engagement, like educational resources and peer forums, can help build trust and support subscription-based models.

Finally, Gomes cautioned against a one-size-fits-all approach. "Ignoring segmentation leads to under-monetization of power users and overpricing for cost-sensitive users," she explained.