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Key Revenue Streams

Innovation and Business Model


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Unit Video

Unit Summary

The seven key revenue streams used in businesses:
  1. Asset sales
  2. Usage fee
  3. Subscription fee
  4. Leasing
  5. Licensing revenue
  6. Brokerage fees
  7. Advertising

Build Your Action Plan

In this video you will learn about the most used methods of getting money for your business through the sales of your products or services.
Revenue streams or sales refer to how you generate cash from your clients. Different client segments could pay you in different ways. Without sales a business can’t function, so this is the most important aspects of any business.
7 most used revenue types include:
  1. Asset sales refers to cases where you sell a product to a client who then becomes the owner of that product. This is the most widely used model in business and takes place anytime we buy a car, computer or a building
  2. Usage fee refers to when a client uses your product or service but its ownership remains with you. This is common in the hotel or airline industry
  3. Subscription fee refers to when your clients subscribe on a monthly or weekly basis and can use your infrastructure. Examples of this include software as a service, gym memberships, etc..
  4. Leasing or renting or lending refer to allowing clients to use your assets for a period of time as if it is theirs
  5. Licensing revenue is earned when you give clients a permission to use your intellectual property. This is common in content production and inventions.
  6. Brokerage fees are earned when you take commission from facilitating a business transaction between two parties.
  7. Advertising results from fees for advertising a particular product or service or brand
Ensuring which of the above revenue streams is most convenient for each of your target segments and in turn allowing you to generate the most business is an essential aspect of having your business survive and thrive.

People don’t buy what you do, they buy why you do it. Simon Sinek