Business Model vs Revenue Model

A business model is a holistic way to look at a company, which comprises the revenue model, but it also goes beyond it. A revenue model instead is primarily about how a company makes money. In short, where a revenue model is about how a company makes money, a business model is way beyond that, as it looks a distribution, product, marketing, and financials.

A scalable business model is one where the business can increase its productivity with the same input. A scalable business model is made of various scalable elements, such as underlying profitability, the ability to automate core processes as scaling is achieved, and a strong distribution network to build a solid business.
Revenue modeling is a process of incorporating a sustainable financial model for revenue generation within a business model design. Revenue modeling can help to understand what options make more sense in creating a digital business from scratch; alternatively, it can help in analyzing existing digital businesses and reverse engineering them.

Read Next: Business Model, Revenue Model.

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