Why Amazon's Unconventional Business Model Is a Recipe for Long-Term Success

Amazon is one of those rare companies that has grown into a true behemoth. Despite its size, many people believe it's invincible and will continue to thrive for years to come.

The company doesn't pay a dividend and constantly issues shares to employees. This might concern some investors, but it doesn't bother one financial expert who is confident in Amazon's future.

A key factor in Amazon's success is its Prime membership program. With nearly 201 million members worldwide, the program offers fast and free delivery, along with other benefits such as streaming services, unlimited photo storage, and grocery discounts.

The value of a Prime membership is estimated to be around $1,430 per year, more than double the annual fee of $139. This high value creates a 'moat' that makes it difficult for customers to cancel their subscription and switch to a competitor.