A revenue model is the part of a business model that says who pays, what they pay for and how often: a user or a third party such as an advertiser, paying for access, usage, a transaction or an outcome, once or on a recurring basis. The term sits inside the wider idea of the business model, which David Teece described in 2010 as the way a firm delivers value to customers and converts payment into profit. Most large companies run several revenue models at once.
How a revenue model works
Where you see it today
Alphabet’s 10-K for 2025 reports Google advertising revenue of $294.7 billion out of total revenues of $402.8 billion. Users pay nothing for search; advertisers pay for their attention, which is the classic third-party revenue model.
Netflix reported revenues of $45.2 billion in 2025. Its 10-K describes a range of pricing plans that includes a lower-priced ad-supported subscription plan, so one service now earns from both members and advertisers.
As of October 2026, Intercom’s pricing page charges $0.99 per outcome for its Fin AI agent and nothing if Fin cannot resolve the request. Price follows the result rather than the number of seats.
As of October 2026, Salesforce’s Agentforce pricing page offers consumption pricing through Flex Credits or $2 per conversation, alongside per-user licences. AI model providers such as Anthropic list API prices per million tokens of input and output.
Common revenue models compared
How to use it
- Write down who pays, for what and how often before you set a price; if the payer is not the user, design for the payer.
- Match the unit to the value: charge for access when value is steady, for usage when it scales with consumption, for outcomes when results can be measured.
- For AI products, check that your price per unit stays above your compute cost per unit at heavy usage.
- Use outcome pricing only where the outcome can be counted and attributed without dispute, and define it in the contract.
- Review the mix once a year: adding an ad tier or a usage meter changes who your customer is.
AI moves the unit of payment from the seat to the token, the task and the outcome, because software now does work rather than just giving people tools. The Business Engineer reads every AI revenue model through its cost per unit: a price that ignores the compute behind each answer can grow revenue and margins in opposite directions.
Read: From SaaS Economics to AI-Native Monetization โExplore the platform โRelated: Subscription business model ยท Freemium business model ยท Asymmetric business models ยท What is a business model ยท Value-based pricing
Frequently asked questions
What is a revenue model?
It is the part of a business model that defines who pays, what they pay for (access, usage, a transaction or an outcome) and how often.
What is the difference between a revenue model and a business model?
The business model covers how a company creates and delivers value and makes a profit; the revenue model is only the part that describes how money comes in.
What is outcome-based pricing?
The customer pays only when a defined result is delivered. Intercom, for example, charges per resolved outcome for its Fin AI agent and nothing when Fin fails.
Can a company use more than one revenue model?
Yes, most do. Netflix sells subscriptions and also runs an ad-supported plan, so members and advertisers both pay.
Sources
- Teece (2010), Business Models, Business Strategy and Innovation, Long Range Planning
- Alphabet Inc. (2026), Form 10-K for fiscal 2025, SEC
- Netflix, Inc. (2026), Form 10-K for fiscal 2025, SEC
- Intercom (2026), Pricing: Fin AI Agent per outcome
- Salesforce (2026), Agentforce pricing
- Anthropic (2026), Claude API pricing
The full guide
The complete explainer, cleaned up and reformatted for mobile.
A revenue model answers three questions: who pays (the user or a third party such as an advertiser), what they pay for (access, usage, a transaction or an outcome) and how often (once or on a recurring basis). Most businesses combine several revenue models.
Sources: FourWeekMBA analysis (Business Engineer framework). Analysis by The Business Engineer.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
A revenue generation model is a strategic framework that defines how a business creates, delivers, and captures value to generate income from its products or services. Revenue models include subscription-based, advertising-supported, transaction-based, freemium, licensing, and commission-based approaches that determine pricing strategies and customer monetization methods.
- Revenue model
- financial model
- business model design
- digital business
- AI Business Model Pattern #8: The Multi-Model Routing…
Get Claude OS โ The AI Strategy Skill ยท The Business Engineer
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 engineer them.
The asymmetry here stands in the fact that users and customers are two separate entities (asymmetrical cash model: users โ customers).
In a non-linear asymmetrical revenue model as the platform scales margins keep growing, thus keeping the platform highly profitable.
In addition, the ad-supported side of the business, if scaled up, can also enable Spotify to generate much more revenues, in the future, at much wider margins.
In short, the product becomes both a revenue generator and a marketing/distribution channel.
Layout refreshed 6 October 2026. The article text below is unchanged.
Changing a revenue model is not just about changing the way you make money, but it implies changing a set of assumptions within a business model.
As the ad-supported side of the business is not only a revenue stream but it's also a marketing and distribution channel โ as explored in how AI is restructuring the traditional value chain โ.
When you combine the two, that is when you're able to build an incredible growth engine that will enable a company to establish a scalable business model built on solid moats!
The Business Engineer view: who pays, for what, and how often
Seen this way, the familiar labels are combinations. Subscription is the user paying for access on a recurring basis; advertising is a third party paying for attention; marketplaces take a cut of each transaction; usage-based pricing charges per unit consumed.
The choice shapes the whole business. Recurring payments make revenue predictable and reward retention. Third-party payers let the product be free but make the advertiser, not the user, the paying customer. Usage pricing aligns cost and revenue but makes revenue swing with demand.
AI products are pushing a fourth unit to the front: paying for an outcome (a resolved ticket, a finished task) rather than for a seat. It ties price to value, but only works when the outcome can be measured and attributed. See what a business model is.
Myth: A revenue model is a business model
I noticed over the years of research I’ve put into business modeling how pervasive the confusion between revenue and business model is.
In the startup world, those are often used as synonyms.
Which is fine as long as it doesn’t limit the understanding of what you can do within a business model.
Indeed, a revenue model actually does inform the business model, and it often influences it from the foundation.
However, those are not the same. In fact, in many cases, a revenue model and stream are the only building blocks of an overall business model.
Take the case of Netflix, which for years has been running with a subscription business model, and that much much later on (only in 2021), Netflix started to roll out an ad-based revenue model.
Changing a revenue model is not just about changing the way you make money, but it implies changing a set of assumptions within a business model.
Going back to the case of Netflix, adding the ad-supported tier within its business model, requires an understanding of the implications that might carry on the overall business model.
Thus, Netflix is not just about running ads on top of its platform. It’s about understanding how the streaming ad ecosystem works, how to integrate it within its business model, and what consequences that might have on a current subscription model.
That is why, if you’re on Netflix when you start running ads, it’s not just about how and how much money you can make from it; it’s about asking a few fundamental questions about the overall business model, such as:
- What’s the impact of advertising on the overall business model?
- How is advertising different from subscriptions?
- What scalability advertising has vs. subscriptions?
- What margins do we have with advertising vs. subscriptions?
- Is advertising helping us build a better acquisition funnel?
- Who are the key players within the advertising ecosystem?
- How do we build a scalable advertising platform?
And so on.
In other words, my argument here is if you plug in a new revenue stream, that is not a business model.
And it’s not just about how you make money; that is also about how that stream integrates within the overall business model and how it changes its distribution, marketing, and financial model.
With this holistic understanding, you are not constrained by a narrowed definition.
Revenue modeling as the avenue into the business model
Once you take into account the above, then, of course, you know that revenue modeling can be an avenue into a business model.
Thus, an understanding of the revenue model will help you:
- Reverse engineering any business (by starting the analysis by simply following the money).
- Speed up the experimentation process by plugging in new revenue models for your business.
- Start building or scaling a business model!
Take the case of Netflix, which for years has been running with a subscription business model, and that much much later on (only in 2021), Netflix started to roll out an ad-based revenue model.
Indeed, Spotify, in 2021, generated โฌ8.46 billion in revenues from the premium members' revenue stream.
Thus, by October 2022, as Netflix started to roll out its ad-supported plan, the company also started to move into an asymmetrical business model type.
What is a business model?
What is a revenue model?
For the sake of this guide, we’ll look at a key distinction: symmetrical vs. asymmetrical in several contexts.
Remember that all classification methods have flaws and we can only take them into account as long as they help us better tune an existing business model.
I decided to use this classification, but any alternative classification works as long as we are able to grasp and understand the possibilities we have in terms of business model design.
Symmetrical vs. Asymmetrical business models
Business models can be of various types.
For that matter, there might be as many business models as the companies we have in the marketplace.
In this guide, we’ll use as reference symmetry vs. asymmetry to distinguish across two main business models categories.
In this particular case, we’ll look at revenue modeling by keeping a key distinction between symmetry and asymmetry from three different perspectives.
Cash: who pays the bill?
In many cases, platform business models success depends upon two key players:
- Users: who don’t pay for some or all the services offered by a platform (on the user-side), but they help the platform build it’s a core asset
- Customers: who pay for the services offered (on the customer-side) to take advantage of the core asset of the platform
In such a business model, the platform assembles the anonymized data of its users who get a free service in exchange.
The assembled data gets processed (by the platform AI and algorithms) and it’s used to scale the platform, build a valuable core asset that can be financed by a set of customers willing to pay for it.
Asymmetrical: users โ customers
The asymmetry here stands in the fact that users and customers are two separate entities (asymmetrical cash model: users โ customers).
Think of how Google sells ads to companies, while its core products are all free to users.
Symmetrical: users = customers
Thus, in a symmetrical revenue model, users and customers are the same entity (symmetrical cash model: users = customers).
Think of how Netflix‘s users are also its customers.
However, it’s worth highlighting how Netflix has now launched an ad-supported version, which starts at $6.99 and is an ad-supported tier.
This is an interesting business model transition. Indeed, for all its life, Netflix has relied on a linear and symmetrical revenue model, where users were also customers.
As of now, that is still true. In fact, in the ad-supported tier, users are still paying customers. However, it’s worth emphasizing that users are now advertisers’ target.
Thus, by October 2022, as Netflix started to roll out its ad-supported plan, the company also started to move into an asymmetrical business model type.
Why is Netflix moving toward an asymmetric business model? The answer is simple: Scale!
To reach a subsequent stage of scale, where the company can successfully reach a billion users, an ad-supported business model can help with that.
Information: does the user know how the platform makes money?
If there is information asymmetry, it means there is one of the parties knows more than the other side.
Asymmetrical: hidden revenue generation
In a hidden revenue generation model, the users of the platform ignore how it makes money while the platform knows a lot about its users.
Symmetrical: revealed revenue generation
In a symmetrical model, revenue generation is revealed, thus enabling the customers to know what they get for the service paid.
Scale: does the platform retain its margins as it scales?
Scale is the ability of a company to grow exponentially while keeping its margins growing with the platform’s revenues.
Symmetrical and Linear: margins tighten as the platform scales
In a linear symmetrical revenue model as the platform scales its margins tighten up, thus reducing the profitability of the platform.
Asymmetrical and Non-linear: margins keep growing as the platform scales
In a non-linear asymmetrical revenue model as the platform scales margins keep growing, thus keeping the platform highly profitable.
Revenue model examples
In this chapter, we’ll see some revenue model examples you can use or borrow to build your business model.
Ad-supported
Freemium
Subscription-based
Consumption-based
Commission-based
Hidden Revenue
Razor and blade
Direct
Indirect
Hybrid revenue models
A good example of a business model that has different revenue models is Amazon. Based on each side of its business, Amazon has different revenue streams and models:
Within the Amazon core consumer e-commerce platform, there are two main types of revenue streams:
- Amazon-branded products: on those products which are labeled and sourced by Amazon, the company sells them directly to consumers. Therefore, this is part of the revenue model, where Amazon has the highest margins and more control.
- Amazon’s third-parties products: those are products that Amazon hosts on its own e-commerce platform. Those products benefit from Amazon’s e-commerce visibility and sustained traffic. At the same time, Amazon will have the advantage of increasing the variety of products available in its stores, thus making them more appealing to consumers. However, compared to the branded product, Amazon will have less control and reduced margins. Indeed, Amazon will split the revenues with third-party sellers.
To enable more capabilities to third-party e-commerce stores, and at the same time, guarantee a better experience on its e-commerce (and we can argue also to have more control and margins) Amazon introduced over the years the third-party seller services:
- Amazon third-party seller services: fulfilled by Amazon, perhaps enables sellers to host their inventories, and deliver with Amazon, thus collecting a royalty as a result of the sales made on the platform. Here, the revenue model is flipped. Indeed, Amazon will collect most of the revenues coming from the product sales (remember that Amazon also takes care of storing the inventory and fulfilling it to customers) and the seller will collect a royalty, thus a % of the sale.
Other revenue streams comprise:
- Product advertising: Amazon is the most popular product search engine. Over the years it gave the options to e-commerce built on top of Amazon, to gain more visibility both on an impression or on a click-through rate basis. This means that Amazon sells advertising with a bidding model (similar to Google Ads).
- Amazon Prime: born as an attempt by Amazon to increase the repeat business on the e-commerce platform, Prime turned into a real streaming entertaining business, competing with other companies, like Netflix. This revenue stream follows a subscription-based model.
- Amazon AWS: Amazon AWS turned into a cloud infrastructure able to support many small, medium, and enterprise customers. The revenue model here runs primarily based on a consumption basis. Therefore, with a logic of pay-as-you-go.
Revenue model vs. cost structure
To complete the picture, it’s critical to trace the difference between the revenue model and cost structure.
And from there, how the two elements come together to help build a viable business model.
The cost structure is tightly connected to the revenue model. Each revenue stream might carry
Revenue model and distribution
In many cases, having a more holistic view of how the revenue model and cost structure interact is critical also to assess when a revenue model goes beyond making money alone.
Don’t get me wrong; a revenue model does focus primarily on how to make money for a business.
However, in some cases, a revenue model might bring in the money as a side-effect of building distribution for the business.
Let’s take a few examples.
When you look at Spotify’s business model, there is no doubt that the premium members’ revenue stream (for now) is the one that most contributes to the business.
Above, you can see how the premium membership revenue is many times over that of the ad-supported tier.
And there is more to it.
Even if we look at it from a cost structure standpoint, the premium membership revenue has a much lower cost compared to the ad business.
Indeed, Spotify, in 2021, generated โฌ8.46 billion in revenues from the premium members’ revenue stream.
And of that, an almost 30% gross profit margin.
On the other hand, in the same period, Spotify generated โฌ1.2 billion in revenue from the ad-supported stream at a 20% gross profit margin.
Does that mean the ad-supported revenue stream is not as good as the premium members?
If you look at it from a revenue generation standpoint alone. That is what you can imply.
However, you do understand that the ad-supported side of the business also represents the marketing funnel, which helps Spotify get recognized by hundred of millions of users across the world.
And that many of these free, ad-supported members become, over time, paid subscribers.
You can get a more comprehensive picture.
As the ad-supported side of the business is not only a revenue stream but it’s also a marketing and distribution channel โ as explored in how AI is restructuring the traditional value chain โ .
In addition, the ad-supported side of the business, if scaled up, can also enable Spotify to generate much more revenues, in the future, at much wider margins.
Indeed, advertising networks, compared to membership networks, work better as they are scaled up!
That is why it’s critical to develop a holistic mindset to grasp the complete picture of how companies’ business models work.
This is the essence of business engineering.
Breaking down the wall between product and distribution
The lesson we learned from the Internet playbook and way of doing business is the aspiration, over time, to break the walls between product and distribution.
In short, the product becomes both a revenue generator and a marketing/distribution channel.
When you combine the two, that is when you’re able to build an incredible growth engine that will enable a company to establish a scalable business model built on solid moats!
Key Highlights:
- Revenue Modeling Defined: Revenue modeling involves creating a sustainable financial plan for generating income within a business model. It aids in analyzing existing digital businesses, reverse engineering them, and designing new digital ventures.
- Distinguishing Revenue Model and Business Model: While often used interchangeably, a revenue model and a business model are not the same. A revenue model is a foundational element within a business model that informs and influences various aspects of the business.
- Netflix Case Study: The example of Netflix demonstrates how changing a revenue model (adding an ad-based tier) impacts the entire business model. This shift requires considerations about the impact on the overall model, differences from subscriptions, scalability, margins, acquisition funnel, ecosystem players, and platform scalability.
- Holistic Approach to Revenue Modeling: Revenue modeling goes beyond just making money; it involves understanding how a new revenue stream integrates with the business model, impacting distribution, marketing, and financial aspects.
- Importance of Asking Fundamental Questions: When introducing a new revenue stream, it’s crucial to address fundamental questions about its effects on the overall business model, differences from existing streams, scalability, margins, and more.
- Avenue into Business Model Design: Revenue modeling serves as an entry point to designing a business model. It helps in reverse engineering businesses, accelerating experimentation with new revenue models, and facilitating the process of building or scaling a business.
- Business Model Defined: A business model is a comprehensive framework that systematically creates long-term value for an organization by delivering value to customers and capturing value through monetization strategies. It guides understanding, design, and testing of business assumptions.
- Revenue Model Defined: A revenue stream is a foundational component of a business model, representing the economic value customers pay for products and services. It influences how a business model functions and delivers value.
- Symmetrical vs. Asymmetrical Business Models: Asymmetrical models don’t directly monetize users but leverage user data and technology, often having a key customer pay to sustain the core asset. Google’s data-driven ad monetization is an example of an asymmetrical model.
- Various Business Model Types: Business models come in different types, such as scalability, incubator, pivot, freemium, open source, seed funding, cash flow, accessibility, blue ocean, churn, evangelist, growth hacking, MVP, leaner MVP, product-market fit, business engineering, and more.
- Transitional Business Models: Transitional models are used to enter markets, gain traction, and shape long-term scalability visions.
- Revenue Streams Matrix: Classification of revenue streams based on customer interactions and ownership of those interactions aids in revenue modeling.
- Pricing Strategies: Developing pricing models that align with customer needs and financial sustainability is an integral aspect of revenue modeling.
- Considerations in Designing Business Models: A holistic understanding of revenue modeling is crucial, as it influences distribution, marketing, financial models, and other key aspects of a business model.
- Applying Holistic Approach to Business Growth: Utilizing revenue modeling for designing innovative revenue strategies contributes to business growth and sustainability.
Other Case Studies
Show the revenue model case studies
Company ยท Revenue Model ยท Case Study ยท Analysis
Netflix
Revenue Model. Subscription-Based Model
Case Study. Netflix’s subscription streaming service
Analysis. Netflix relies on monthly subscription fees, providing access to a vast library of content with no ads.
Spotify
Revenue Model. Freemium Model
Case Study. Spotify’s free and premium music streaming
Analysis. Spotify offers both free ad-supported and premium ad-free subscriptions, generating revenue from premium users and advertisers.
Amazon
Revenue Model. E-commerce and Marketplace Model
Case Study. Amazon’s online retail and third-party sellers
Analysis. Amazon generates revenue through product sales, third-party seller fees, and Amazon Web Services (AWS).
Revenue Model. Advertising Model
Case Study. Google’s online advertising, AdWords, and AdSense
Analysis. Google earns revenue by displaying ads on its search results pages and partner websites.
Apple
Revenue Model. Hardware and Ecosystem Model
Case Study. Apple’s sale of hardware and services
Analysis. Apple generates revenue from the sale of hardware (iPhone, Mac) and services (Apple Music, App Store).
Airbnb
Revenue Model. Commission Model
Case Study. Airbnb’s commission from host and guest bookings
Analysis. Airbnb earns a percentage from hosts and guests for each booking facilitated on its platform.
Uber
Revenue Model. Commission and Ride Fees Model
Case Study. Uber’s commission from drivers and ride fees
Analysis. Uber takes a commission from driver earnings and charges riders based on distance and time.
Revenue Model. Subscription and Recruitment Model
Case Study. LinkedIn’s premium subscriptions and job postings
Analysis. LinkedIn generates revenue from premium subscriptions, talent solutions, and marketing solutions.
Dropbox
Revenue Model. Freemium and Subscription Model
Case Study. Dropbox’s cloud storage and file-sharing
Analysis. Dropbox offers free storage with premium subscriptions for additional features and space.
Facebook (Meta)
Revenue Model. Advertising and Data Monetization Model
Case Study. Facebook and Instagram’s advertising and user data
Analysis. Meta earns revenue by displaying targeted ads to users and monetizing user data.
Etsy
Revenue Model. Handmade and Artisanal Goods Marketplace
Case Study. Etsy’s platform for artisans and crafters
Analysis. Etsy provides a platform for artisans to sell their unique handmade products to a global audience.
Upwork
Revenue Model. Freelance Talent Marketplace
Case Study. Upwork’s platform for freelancers and clients
Analysis. Upwork connects businesses with freelance talent for various projects, spanning from writing to programming.
eBay
Revenue Model. Online Auction and Sales Marketplace
Case Study. eBay’s platform for auctions and sales
Analysis. eBay allows individuals and businesses to buy and sell a wide range of goods through auctions and direct sales.
Alibaba Group
Revenue Model. B2B and B2C E-commerce Marketplace
Case Study. Alibaba’s e-commerce and wholesale platforms
Analysis. Alibaba connects global buyers and sellers, facilitating trade and e-commerce transactions on a massive scale.
Turo
Revenue Model. Peer-to-Peer Car Rental
Case Study. Turo’s platform for car owners and renters
Analysis. Turo enables individuals to rent their vehicles to travelers, disrupting the traditional car rental industry.
Fiverr
Revenue Model. Freelance Services Marketplace
Case Study. Fiverr’s platform for freelance services
Analysis. Fiverr offers a marketplace for freelancers to offer a wide range of services, from graphic design to content writing.
TaskRabbit
Revenue Model. On-Demand Task and Service Marketplace
Case Study. TaskRabbit’s platform for taskers and clients
Analysis. TaskRabbit connects individuals with skilled taskers who can complete a variety of household and business tasks.
OpenTable
Revenue Model. Restaurant Reservation Marketplace
Case Study. OpenTable’s platform for restaurant reservations
Analysis. OpenTable allows users to book restaurant reservations and helps restaurants manage their tables efficiently.
StockX
Revenue Model. Sneaker and Collectibles Marketplace
Case Study. StockX’s platform for sneakers and collectibles
Analysis. StockX provides a marketplace for authenticated sneaker and collectible sales, ensuring transparency and trust.
Poshmark
Revenue Model. Fashion Resale Marketplace
Case Study. Poshmark’s platform for fashion resale
Analysis. Poshmark connects fashion enthusiasts to buy and sell gently used clothing and accessories.
Thumbtack
Revenue Model. Local Services Marketplace
Case Study. Thumbtack’s platform for local service providers
Analysis. Thumbtack helps users find and hire local service professionals, from plumbers to wedding photographers.
HomeAway (Vrbo)
Revenue Model. Vacation Rental Marketplace
Case Study. HomeAway’s platform for vacation rentals
Analysis. HomeAway offers a marketplace for vacation rentals, connecting travelers with property owners.
Booking.com
Revenue Model. Hotel and Accommodation Booking
Case Study. Booking.com’s online travel agency platform
Analysis. Booking.com enables travelers to book hotels and accommodations worldwide, serving as an intermediary between customers and hotels.
Zillow
Revenue Model. Real Estate Marketplace
Case Study. Zillow’s platform for buying and selling homes
Analysis. Zillow provides tools for home buyers, sellers, and renters, simplifying the real estate process.
Freelancer.com
Revenue Model. Freelance Job Marketplace
Case Study. Freelancer.com’s platform for freelance jobs
Analysis. Freelancer.com connects employers with freelancers to complete a wide range of projects, from software development to graphic design.
Rover
Revenue Model. Pet Services Marketplace
Case Study. Rover’s platform for pet care services
Analysis. Rover connects pet owners with pet sitters and walkers, offering a range of pet care services.
99designs
Revenue Model. Design Services Marketplace
Case Study. 99designs’ platform for design contests
Analysis. 99designs hosts design contests, allowing businesses to receive custom designs from a global community of designers.
Revenue Model. Subscription and In-App Purchases Model
Case Study. WhatsApp’s subscription and in-app sticker purchases
Analysis. WhatsApp offers a free messaging service with revenue generated from subscriptions and in-app purchases.
Patreon
Revenue Model. Membership and Crowdfunding Model
Case Study. Patreon’s support for content creators
Analysis. Patreon allows creators to offer exclusive content to paying members, generating income through memberships.
Shopify
Revenue Model. Subscription and E-commerce Model
Case Study. Shopify’s e-commerce platform and subscription fees
Analysis. Shopify offers e-commerce solutions and earns revenue through monthly subscription fees and transaction fees.
HubSpot
Revenue Model. Inbound Marketing and SaaS Model
Case Study. HubSpot’s inbound marketing and SaaS services
Analysis. HubSpot provides inbound marketing and sales software on a subscription basis, generating recurring revenue.
Airbnb for Work
Revenue Model. Corporate Travel and Service Fees Model
Case Study. Airbnb for Work’s service fees for corporate travel
Analysis. Airbnb for Work charges service fees for businesses booking accommodations and experiences.
Coursera
Revenue Model. Online Education and Certification Model
Case Study. Coursera’s online courses and specialization certificates
Analysis. Coursera offers courses for free or as part of a subscription, with revenue generated from paid certificates.
Yelp
Revenue Model. Advertising and Local Business Model
Case Study. Yelp’s advertising and partnerships with local businesses
Analysis. Yelp offers advertising and business solutions, generating revenue through partnerships.
LinkedIn Talent Solutions
Revenue Model. Recruitment and Subscription Model
Case Study. LinkedIn’s recruitment tools and premium subscriptions
Analysis. LinkedIn Talent Solutions provides tools for talent recruitment and generates revenue through premium subscriptions.
Square
Revenue Model. Payment Processing and Financial Services
Case Study. Square’s payment processing and financial services
Analysis. Square offers payment processing and financial services, earning revenue through transaction fees and subscriptions.
Salesforce
Revenue Model. CRM and Enterprise Software Model
Case Study. Salesforce’s customer relationship management (CRM)
Analysis. Salesforce generates revenue from its CRM software and cloud services for enterprises.
Udemy
Revenue Model. Online Learning and Course Sales Model
Case Study. Udemy’s marketplace for online courses
Analysis. Udemy allows instructors to sell courses, with revenue shared between the platform and instructors.
GoFundMe
Revenue Model. Crowdfunding and Platform Fees Model
Case Study. GoFundMe’s crowdfunding platform and fees
Analysis. GoFundMe facilitates fundraising campaigns and charges platform fees on donations.
Shutterfly
Revenue Model. Photo Printing and Personalized Products
Case Study. Shutterfly’s photo books, gifts, and printing services
Analysis. Shutterfly generates revenue by selling personalized photo products.
Robinhood
Revenue Model. Commission-Free Stock Trading Model
Case Study. Robinhood’s commission-free stock and crypto trading
Analysis. Robinhood offers commission-free trading and generates revenue through order flow payments.
Salesforce Marketing Cloud
Revenue Model. Marketing Automation Model
Case Study. Salesforce Marketing Cloud’s marketing automation
Analysis. Salesforce’s marketing automation tools generate revenue through subscription and usage fees.
DoorDash
Revenue Model. Food Delivery and Service Fees Model
Case Study. DoorDash’s food delivery and service fees
Analysis. DoorDash charges service fees to customers and restaurants for food delivery services.
Expedia
Revenue Model. Online Travel Booking and Commissions
Case Study. Expedia’s online travel booking and commissions
Analysis. Expedia earns revenue by facilitating online travel bookings and taking commissions from hotels and airlines.
GitHub
Revenue Model. Developer Tools and Enterprise Services
Case Study. GitHub’s code hosting and collaboration platform
Analysis. GitHub provides free and paid developer tools and earns revenue from enterprise subscriptions.
SurveyMonkey
Revenue Model. Survey and Data Insights Model
Case Study. SurveyMonkey’s survey creation and data analysis
Analysis. SurveyMonkey offers survey tools and generates revenue from premium plans and data insights.
ZoomInfo
Revenue Model. B2B Sales and Marketing Intelligence
Case Study. ZoomInfo’s B2B sales and marketing intelligence
Analysis. ZoomInfo offers B2B data and intelligence services, earning revenue through subscriptions and sales.
Other Key Components of a Business Model
Show the other components of a business model
How AI Is Changing This
AI is fundamentally transforming revenue models across industries by enabling new forms of value creation and capture. Traditional one-time purchase models are evolving into dynamic, usage-based pricing structures powered by AI analytics.
A concrete example is Adobe’s transformation from selling perpetual software licenses to its Creative Cloud subscription model, enhanced by AI-driven features like content-aware fill and automated design suggestions.
The AI capabilities justify higher recurring fees while providing continuous value through regular updates and personalized features. This shift has dramatically increased Adobe’s revenue predictability and customer lifetime value, with subscription revenue growing from virtually zero to over $11 billion annually.
Similarly, AI enables companies to offer freemium models with intelligent upselling, dynamic pricing based on real-time demand analysis, and outcome-based pricing where customers pay for results rather than tools, fundamentally reshaping how businesses monetize their offerings.
For deeper analysis: The Business Engineer โ AI Strategy Intelligence
Key Takeaways
- Revenue modeling is a process of incorporating a sustainable financial model for revenue generation within a business model design.
- I noticed over the years of research I've put into business modeling how pervasive the confusion between revenue and business model is.
- Once you take into account the above, then, of course, you know that revenue modeling can be an avenue into a business model.
- For the sake of this guide, we'll look at a key distinction: symmetrical vs.
- For that matter, there might be as many business models as the companies we have in the marketplace.
- In many cases, platform business models success depends upon two key players:
- If there is information asymmetry, it means there is one of the parties knows more than the other side.
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More questions, answered from the sources
What is the difference between a revenue model and a pricing model?
The revenue model says who pays and for what; the pricing model sets how much and in what structure (tiers, per unit, discounts).
What is outcome-based pricing?
Charging for a result the product delivers, such as a resolved support case, instead of for access or seats. It aligns price with value but needs a measurable outcome.
Which revenue models are most predictable?
Recurring models such as subscriptions and contracts, because revenue repeats each period as long as customers stay.
