Revenue Models

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By Arnab Ray

Today we are going to talk about Revenue Models. Revenue model is one of my favourite topics to talk about. It helps in identifying the monetization strategy for your business. It helps us understand how we generate revenue for our business.
I have met quite a few entrepreneurs who ignore this initially and later on struggle to create a sustainable and profitable revenue stream to operate their business.

Please note you cannot run your venture through funding beyond a certain point. If you see a lot of the ecommerce / app based companies, they are still struggling with generating enough revenue to sustain and are extremely depending on funding rounds.

You must keep this in mind.

“The primary source of your funds for your business should come from your customers, if you fail to do that you depend on funding”

So lets dive in and see what does your revenue model depends on:

factors of revenue model

Let’s look into some of the revenue model types.

Revenue Model: Advertising
Revenue Model: Affiliate
Revenue Model: Auctions
Revenue Model: Commission
Revenue Model: Data sales
Revenue Model: Ecommerce
Revenue Model: Services
Revenue Model: Freemium
Revenue Model: Licensing
Revenue Model: Marketplace
Revenue Model: Markup Model
Revenue Model: Production
Revenue Model: Rental
Revenue Model: Subscription
Revenue Model: Transaction
Revenue Model: Software Licensing

Things to remember

  • You must have a monetization and a revenue model in place for your venture
  • A company can have multiple revenue models & revenue streams
  • Your customer may not be your consumer
  • Revenue model impacts all areas of business (brand, sales, operations, finance)

If you require any help you can contact one of my ventures at

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    4 thoughts on “Revenue Models”

      • Revenue model is for a company – so fee for services.
        However project pricing is purely a separate subject, it can be fixed price, time and material, milestone based, turnkey etc.
        All are applicable in your case and the decision will depends on several factors such as scope, definition, variability, etc.


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