What is a cooperative business model?

Cooperative businesses, owned by member-owners, allow each member to have a say in how the business is run. Unlike traditional business models, cooperative businesses are not nonprofits and the profits benefit the member-owners. They offer many benefits, such as lower costs for items, and may have membership options with various perks. A well-known example of a cooperative business is REI, the largest consumer co-op, which offers memberships with perks and helps to run the business.