Browse Definitions :
Definition

revenue model

Contributor(s): Ivy Wigmore

A revenue model is a component of a company’s business planning that describes the way it intends to make money. The revenue model is an important element of an organization’s business model and business plan

Basically, the revenue model details on what the business will offer and how it will charge customers: What product or service it will offer, what it will charge for the product or service and the method it will use to generate revenue. 

Examples of revenue models include:  

Advertising (ad-based): A website or app owner can contract with marketers to place advertisements on their content.  

Manufacturing: Manufacturers create products and sell the finished goods.  

Markup: Resellers purchase goods, typically at a discounted bulk purchase price, and sell at a higher price.  

Licensing: Producers of software often charge a per-user licensing fee for use of their product over a specified time period. 

IT services provider: Less formally known as a body shop, an IT service provider or consultancy hires employees and subcontracts them out to other companies.  

Freemium: A basic but functional product is offered without charge and an upgraded version of the product made available for a price.  

 

 

This was last updated in July 2018

Continue Reading About revenue model

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

SearchCompliance

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • spyware

    Spyware is a type of malicious software -- or malware -- that is installed on a computing device without the end user's knowledge.

  • application whitelisting

    Application whitelisting is the practice of specifying an index of approved software applications or executable files that are ...

  • botnet

    A botnet is a collection of internet-connected devices, which may include PCs, servers, mobile devices and internet of things ...

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

SearchStorage

  • DRAM (dynamic random access memory)

    Dynamic random access memory (DRAM) is a type of semiconductor memory that is typically used for the data or program code needed ...

  • RAID 10 (RAID 1+0)

    RAID 10, also known as RAID 1+0, is a RAID configuration that combines disk mirroring and disk striping to protect data.

  • PCIe SSD (PCIe solid-state drive)

    A PCIe SSD (PCIe solid-state drive) is a high-speed expansion card that attaches a computer to its peripherals.

Close