Road To Entrepreneurship-Revenue Model

Road To Entrepreneurship-Revenue Model

Revenue Model is the building block representing the cash (not profit, which is revenue minus costs) a company generates from each customer segment. Revenues are the lifeblood of a company. Revenue stream may have different pricing mechanisms, such as fixed list prices, bargaining, auctioning, market dependent, volume dependent, or yield management. Revenue Streams can be generated in many ways:

• a. Asset sale 
• b. Usage fee 
• c. Subscription fees 
• d. Lending/Renting/Leasing 
• e. Licensing 
• f. Brokerage Fees 
• g. Advertising 
• h. Pricing mechanisms: Fixed or Dynamic 

Let's take the example of Ola: How does ola make money: 

• a. Trip Commission 
• b. In-cab promotions and advertisement commissions
• c. Cab leasing program for its driver-partners 
• d. Ola Money and Ola credit cards 
• e. Corporate accounts: Ola performs several business meetings with the heads of various organizations where they promote Ola and convince corporate managers and employees to use Ola cabs for their business travels. Reduced rates are charged from these corporates as demand increases. With these B 2 B tie-ups, Ola earns a higher sales volume. 
• f. Delivery service - Food Panda 
• g. Ola Prime Play.

 Now we have understood different type of Business Models and Revenue Models , Now we would learn a new topic MVP in next topic .

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