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Revenue model is not the same as business model although the two ideas are interrelated and the terms are often used interchangeably.
Licensing revenue model example. Many to many business model interaction allows one group of users producers to create and consume value on the platform for the other group of users consumers to consume. Licensing is most commonly applied to innovations that involve sophisticated technology protected by intellectual property ip agreements. The licensing revenue model is applicable to most industries including. Relevant products for the licensing model.
This is specifically to illustrate that they aren t mutually exclusive and there s a grey area between each one. Most ecommerce stores and software products work according to this value model. Qualcomm a giant of the licensing business model terry ludlow founder and ceo chipworks points that some blue chip companies start making significant revenues through the licensing business model. Information and communication technologies ict life sciences.
Where they provide the specified service for a pre determined periodic cost. Licensing revenue is income earned by a company for allowing its copyrighted or patented material to be used by another company. Alternatively you may begin with subscription see only a fraction of your potential success realized and move to a licensing revenue model. Business model also covers ways of adding value for customers and ways of managing expenses.
You ll notice that some example revenue models are included in more than one category. 2 sided marketplace affiliate referral commission licensing revenue franchise revenue. And it is not uncommon to commercialise your ip and license it out in parallel qualcomm is one example for this. A company s revenue structure is the way it earns and receives money.
A subscription model is a great example of recurring revenue strategy. Some examples of things that may be licensed include songs sports. The most common example of the subscription revenue model are newspapers subscriptions.
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