5. Revenue Streams

A revenue stream is the methodology a company follows to get its customer segments to buy its product or service. A revenue stream can be created through the following ways:

1. Asset Sale: the company sells the right of ownership over the goods to the customer.
2. Usage Fee: the company charges the customer for the use of its product or service.
3. Subscription Fee: the company charges the customer for the regular and consistent use of its product or service.
4. Lending/ Leasing/ Renting: the customer pays to get exclusive access to the product for a time-bound period
5. Licensing: the company charges for the use of its intellectual property.
6. Brokerage Fees: companies or individuals that act as an intermediary between two parties charge a brokerage fee for their services.
7. Advertising: a company charges for others to advertise their products using their mediums.

When setting up revenue streams, it is important to recognize that an effective price for the product and/or service will be arrived at through the process of elimination. Different iterations of prices should be listed and evaluated. It is important, in the end to take a break ad reflect on possible avenues open to you as a business.

The basic questions you must answer in this category are:

For what value are your audiences willing to pay? For what and how do they recently pay? How would they prefer to pay? How much does every revenue stream contribute to the overall revenues? How much will you make?