Types of Revenue Models

  1. Ad-supported Revenue Model: The ad-supported revenue model generates revenue by displaying advertisements to users. This model is commonly used by social media platforms like Facebook and Instagram, as well as search engines like Google.
  2. Licensing Revenue Model: The licensing revenue model involves granting permission to others to use a company's intellectual property, such as patents or trademarks, in exchange for a fee. Examples of this include the licensing of software by companies like Microsoft, and the licensing of characters by companies like Disney.
  3. Affiliate Revenue Model: The affiliate revenue model involves earning a commission for promoting another company's products or services. This is commonly used by bloggers, influencers, and affiliate marketers.
  4. White-labeling Revenue Model: The white-labeling revenue model involves selling a product or service under another company's brand. This is commonly used in the software industry, where one company may provide a white-labeled version of their product to be sold by another company.
  5. Freemium Revenue Model: The freemium revenue model involves offering a basic version of a product or service for free, while charging for premium features or content. Examples of this include Dropbox and Spotify. Make sure to read the blog on Better than Free here
  6. Subscription-based Revenue Model: The subscription-based revenue model involves charging customers a recurring fee for access to a product or service. Examples of this include Netflix and Amazon Prime.
  7. Consumption-based Revenue Model: The consumption-based revenue model involves charging customers based on how much they use a product or service. Examples of this include utility companies, such as electric and water companies.
  8. Brokerage (Commission-based) Revenue Model: The brokerage revenue model involves earning a commission for facilitating a transaction between two parties. Examples of this include real estate agents and stockbrokers.
  9. Hidden Revenue Model: The hidden revenue model involves generating revenue through methods that are not apparent to customers. Examples of this include data mining and advertising.
  10. Razor and Blade Revenue Model: The razor and blade revenue model involves selling a product at a low or discounted price, while charging a premium for accessories or replacement parts. Examples of this include razors and printers.
  11. Donation Revenue Model: The donation revenue model involves earning revenue through donations from customers or supporters. Examples of this include non-profit organizations and fundraising websites like GoFundMe.
  12. Arbitrage Revenue Model: The arbitrage revenue model involves earning a profit by exploiting price differences in different markets. Examples of this include currency trading and stock trading.
  13. Data Sales Revenue Model: The data sales revenue model involves generating revenue by selling customer data to other companies. Examples of this include data brokers and credit scoring agencies.
  14. Transactional Revenue Model: The transactional revenue model involves earning revenue by charging a fee for each transaction. Examples of this include credit card companies and PayPal.
  15. Rental or Leasing Revenue Model: The rental or leasing revenue model involves earning revenue by renting or leasing a product or service for a set period of time. Examples of this include car rental companies and equipment rental companies.
  16. Borrow / Lending Revenue Model: The borrow/lending revenue model involves earning revenue by charging interest on loans or earning interest on money that is loaned out. Examples of this include banks and peer-to-peer lending platforms.
  17. Product is Free, But Services Aren’t: The product is free, but services aren't revenue model involves offering a product or service for free, but charging for additional services or features. Examples of this include mobile games and social media platforms.
  18. Direct Revenue Model: The direct revenue model involves generating revenue by selling products or services directly to customers. Examples of this include retail stores and eCommerce websites.