Revenue Stream Vs Revenue Model
A revenue stream is easily confused with a revenue model which in turn is often confused with a business model.
Revenue stream vs revenue model. In business you often hear these terms being used with various levels of accuracy. Definition of a revenue stream. Business terms like revenue model revenue stream and business model may seem like basic concepts but many people get confused with these terms. It is the most common source of income the result of the sale of a physical product which belongs to the customer.
We will explore the two types of revenue streams available which are either transaction based or recurring revenues. A company s revenue structure is the way it earns and receives money. And in this article i ll try to provide clear explanations and definitions for what these terms are. For companies with a recurring revenue stream a forecast model should have a uniform structure and a similar pattern in revenue predictions.
Single payment and recurring income transactions resulting from the constant payment due to repeat service or after sales support. A revenue model is the strategy of managing a company s revenue streams and the resources required for each revenue stream. A company can have zero or many revenue streams depending on its size. Business model also covers ways of adding value for customers and ways of managing expenses.
Business terms like revenue model revenue stream and business model may seem like basic concepts but many people get confused with these terms. We will look at 1 revenue streams 2 developing your revenue model 3 types of revenue streams 4 pricing mechanism 5 ways to generate revenue stream 6 key revenue model and market questions and 7 two case studies. A revenue stream is a company s single source of revenue. Revenue model is not the same as business model although the two ideas are interrelated and the terms are often used interchangeably.
Some options for generating revenue streams involve. A business model is the structure comprised of all aspects of a company including. A revenue stream is a distinct source of income that can come from either be recurring revenue transaction based or service revenue. A business model essentially includes two types of revenue streams.