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A revenue model is a framework for determining how a business will earn revenue.
Revenue model with respect to a business. Sales from a single product. Revenue models map out the value proposition of a business how to price the value and how customers will pay for it. A revenue model is how a startup makes money and delivers value. It is the backbone of every startup.
As such frequently switching or implementing the wrong revenue model can cause failure given. Revenue models often get conflated with revenue streams probably because each is a single revenue source. Before we dig into the weeds it ll be helpful to understand the difference between a revenue stream and a revenue model. In short a revenue stream represents one of the specific ways you re making money i e.
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