Revenue Stream: Examples, And Types Of Revenue Streams

A revenue stream is one of the foundational building blocks of a business model, and the economic value customers are willing to pay for the products and services offered. While a revenue stream is not a business model, it does influence how a business model works and delivers value.

Table of Contents

Revenue streams vs. business models

How Airbnb described its revenue streams as a business model.

One of the greatest misconceptions is about revenue streams and business models. In short, for most entrepreneurs how you make money is also your business model.

While this simplification does work out (especially in pitch decks where investors might want to have a simplified story of a business model) it might be limiting if you’re an entrepreneur trying to grow or dissect competitors’ businesses.

Therefore, revenue streams affect a business model, and a revenue stream is an essential building block of any business. But that is only part of the story.

Missing this point means limiting your business around the bottom line alone.

Why does understanding revenue streams matter?

In a digitally-driven business world, it’s easy to fall into the trap of focusing on aspects that are too far from monetization.

In contrast, monetization and revenue streams are not all that is.

They are critical building blocks that need to be figured out, tested, and iterated quickly.

From them, it depends on the survival of your company.

There is another element that makes the action of having your customers pay for a service or product you offer, which is tied to the so-called “revealed preference.”

That is a theory offered by the American economist Paul Samuelson in 1938.

The theory asserts that consumers’ behavior – assuming a constant income and an item’s price – is the best indicator of their hidden preferences. In short, that is how people reveal what they really want.

We can call this “Skin in The Game Data.”

To understand this point, in the FourWeekMBA interview with Alberto Savoia, he explained:

So skin in the game data means not people telling you, “Oh yeah, if you build it, I will buy it,” they need to give you something. So the smallest amount of steering the game somebody can give you is a valid email address with a clear understanding you will use that address to let them know if the app is ready. So you have this video, you either buy some ads or you put it on some forums, you say, “okay, here’s an app I am trying to build, if you are interested, please give me your email address, and once I launch it, I will let you know.”

While complex businesses make money in many different ways.

Looking at revenue streams and where the key customer is can help us assess the nature of an organization.

Of course, this is in theory, as many digital platforms are very complex.

At times who and those who can’t be deemed as customers are often the most valuable assets for a digital organization.

This is true for media businesses and in some cases for digital platforms.

For instance, Google is free for its users.

Yet users are the most important “returning customers” for the search engine.

As users’ data is the monetizable asset Google sells to companies on its search results page.

Let’s draw a line here.

The bottom line is highly tied to its key customers for simple, more linear business models.

For more complex business models, things get trickier.

In short, platforms, super platforms, and non-linear businesses where there is a more complex interaction between the bottom line and the key players’ revenue streams are only a tiny part of the story.

For other, simpler business models, revenue streams reveal business facts that can’t be ignored.

Branding vs. revenue streams

Focusing on revenue streams doesn’t mean ignoring the rest.

In the business world, companies often praise themselves for being extremely focused on the bottom line and their key customers.

However, thinking in terms of the bottom line alone might give us the appearance of being rational business people, but it doesn’t leave space for nonlinear growth, which can be achieved through branding efforts.

Brand building is the set of activities that help companies to build an identity that can be recognized by its audience. Thus, it works as a mechanism of identification through core values that signal trust and that help build long-term relationships between the brand and its key stakeholders.

When we focus on revenue streams and the bottom-line, we can work on direct actions intended to bring more customers in.

However, we might end up ignoring marketing and branding activities – that, while harder to track and explain from a logical standpoint – can bring our business to the next level.

That is also what leads to confusion.

For instance, in the startup world, a freemium model is often seen as a business model or revenue stream.

Instead, a freemium model is, in many cases, a marketing and growth tool that helps the company leverage virality to make its brand go to places where customers alone can’t bring you.

You can still build a revenue stream or a whole business model around a freemium (take the case of DropBox).

Still, in many other cases, as a business person, you need to accept there is no linear connection between your free offering and the bottom-line.

What is a revenue stream in the business model canvas?

For what value are your customers willing to pay?

What and how do they recently pay? How would they prefer to pay?

How much does every revenue stream contribute to the overall revenues?

When you build a business model, it might – at times – all start by identifying a problem or perhaps creating the perception that a problem exists (which is the whole point of demand generation activities).

From there, a product or service which entails an identified value proposition is launched or tested in the marketplace.

What you think is valuable might not be so for your potential customers.

For instance, at the launch stage, you need to find what some might call product-market fit.

Or finetune the value proposition (which provides a solution to a problem or a set of problems) with a group of people willing to pay for it.

When you reach that stage, you have a revenue stream and thus an essential building block of your business model.

Revenue streams and value propositions

value-proposition-canvas-business-model-canvas — The Value Proposition Canvas, part of the Business Model Canvas, is a tool used to ensure a product or service is positioned around customer values and needs.

Oftentimes, mainly when a company has scaled up, there isn’t a single value proposition that is aligned with the value demand.

That is because there are multiple vital customers, thus making the way the company delivers value more complex.

One example is Amazon’s value proposition.

Amazon Value Proposition — A company like Amazon has multiple value propositions, serving several target customers in different markets. With its mission “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online and endeavors to offer its customers the lowest possible prices,” Amazon’s value propositions range from “Easy to read on the go” for a device like Kindle, to “sell better, sell more” to its marketplace.

Another core example is Apple’s value proposition.

apple-value-proposition — Apple is a tech giant, and as such, it encompasses a set of value propositions that make Apple’s brand recognized among consumers. The three fundamental value propositions of Apple’s brand leverage the “Think Different” motto; reliable tech devices for mass markets; in 2019, Apple also started to emphasize more and more privacy to differentiate from other tech giants.

Why testing your revenue streams early on makes sense

In the FourWeekMBA interview with Ash Maurya, he highlighted how:

On a business modeling side, we have the way we deliver value, so that would be the solution you build. Yes, we can make it as efficient as possible in the early days, but that is again chasing pennies and letting dollars slip through the cracks.

What we instead should be doing is focusing more on the revenue streamside, trying to maximize things like pricing, for instance. Trying to identify the right customers, for instance.

In the digital world, it’s easy to focus on parts of your business model that have nothing to do with the bottom line.

Thus, postponing the experimentation of the revenue stream early on. In the end, if you got venture capital money, why spend that on experimenting with pricing, and potential revenue streams, when you can burn it all on growth?

Income Statement and Cash flow statement from WeWork Financial Prospectus.

Suppose you take a case like WeWork, the office-sharing startup that went from Decacorn to Unicorn, up to touch the ground.

The company did grow its revenues, but it didn’t create a sustainable revenue stream.

Therefore, the only cash at the bank came from venture capital funds or financing activities.

Bootstrapped companies have a different approach in their DNA, as they need to master their key customers very quickly before going out of business.

bootstrapping-business — The general concept of Bootstrapping connects to “a self-starting process that is supposed to proceed without external input.” Bootstrapping means financing the company’s growth from the available cash flows produced by a viable business model.

To build a sustainable business model early on, it’s important to start experimenting with the revenue stream building block as soon as possible.

How to choose the right revenue stream?

Building a business is about identifying an opportunity and going with it. Thus, an entrepreneur is a hard-wired opportunist.

However, business is also a matter of choice. And how you make money is part of that choice.

For instance, if you build a website that generates traffic.

That traffic can be monetized in many different ways. You can simply sell those page views to others, thus acting as a publisher.

You can sell other people’s products or services, thus acting as an intermediary on commission.

Or you can develop your own offerings.

You can do it in all these ways.

And there isn’t one which is better than the other. It all depends on what you’re passionate about and whether the market values your skills so that you can find a niche and build a business on top of it.

That sounds easy, yet it’s not. Often entrepreneurs follow every single opportunity that presents itself without evaluating whether it’s in their frame of reference.

This will force you to look for your Blue Sea:

That will lead you to find your Minimum Viable Audience:

Revenue streams types

revenue-streams-model-matrix — In the FourWeekMBA Revenue Streams Matrix, revenue streams are classified according to the kind of interactions the business has with its key customers. The first dimension is the “Frequency” of interaction with the key customer. As the second dimension, there is the “Ownership” of the interaction with the key customer.

There are many ways in which we can classify revenue streams.

For the sake of this guide, we’ll look at revenue streams by looking at the interactions with the key customer.

This classification isn’t flawless; quite the opposite.

And you can argue that it’s not complete, and you would be right.

Therefore, rather than a final or complete representation of the revenue stream types, it’s just a starting point.

Let’s classify the possible revenue model types based on the kind of interaction we can have with the key customers.

Based on that, a whole business model will cascade:

Repeated interaction

The relationship with the key customer doesn’t end after the transaction but continues.

In a subscription-based model, like SaaS, the software vendor will have to provide support and continuous updates of the software to keep the value of the service worth the subscription.

Other businesses based on a repeated relationship, like Netflix, have to advance and invest massive amounts of capital to keep their platforms interesting enough for subscribers to avoid churn.

Companies like Amazon and Costco also introduced a component of repeated transactions (via Amazon Prime Membership or Costco Memberships) within their business model.

While many analysts look at the additional revenues generated by this revenue model, this revenue stream has more holistic and dynamic importance.

When Amazon introduced Prime, it did so because the service enabled repeat customers to eliminate the cost of shipping, which for repeat customers is the most burdening expense.

Thus, a Prime Membership isn’t just an additional revenue stream but a business model enabler.

Transactional interaction

In a transactional interaction, the company mainly engages with its key customers on a product or project basis.

Usually, a product company has this kind of approach.

For instance, Apple came up with the new iPhone, which gets sold to millions of customers as a one-time transaction.

In a transactional revenue model, the whole business model needs to be organized so that the product can be distributed at its best at its launch.

Usually, the critical customer is engaged on a one-time basis, and even if she buys multiple products in the long run, the kind of interaction doesn’t necessarily call for continuous interaction with the key customer.

Intermediated interaction

When a company doesn’t have direct access to its key customers, we can call this an intermediated interaction.

In short, the company can’t directly access a customer base but will do that via a third-party platform or distributor.

Think of the case of a company offering its product white labeled. Final customers won’t know its brand.

Distributors will relabel the product with their own brand. Thus, the maker doesn’t have access to its key customers.

In that scenario, the distributor acts as the key customer.

The maker will have to adapt its business model to the requests and policies that the distributor demands.

That is why a B2B2C business model can be way more effective.

Direct interaction

The company has access to its customer base and key customers in a direct interaction revenue model.

It can deliver the product via its own channels, and it can control the perception those customers have.

Distribution doesn’t come for free. Instead, it requires maintenance, massive investments, and a strongly recognized brand.

Revenue streams examples

There isn’t a single way to generate revenues.

You might choose a subscription business model, a freemium, a fee, or a membership model.

That also depends upon the industry, product, and service you offer.

For instance, Facebook uses a hidden revenue generation model.

hidden-revenue-model-google — A hidden revenue business model is a pattern for revenues generation that keeps users out of the equation so they don’t pay for the service or product offered. For instance, Google’s users don’t pay for the search engine. Instead, the revenue streams come from advertising money spent by businesses bidding on keywords.

In short, the free platform, in a way, “hides” to its users the way it gets monetized.

Of course, business people and marketers know how Facebook makes money, as it has been a proper advertising channel for many businesses.

However, the average user doesn’t have a clue.

Things are changing now that privacy issues and new regulations have brought attention to the Facebook business model.

Yet for a decade, Facebook has benefited from a vast stream of revenues and high profitability without most users ever noticing it.

Some examples of revenue models comprise:

Advertising
Sponsorships
Subscriptions
One-time products and services
Commissions
White labeling
Pay as you go
Licensing
And more

Each of those revenue models can influence the overall business model. In many cases, companies rely on several revenue streams.

For instance, publishers like The NY Times run on advertising, sponsorship, and subscription revenues.

the-new-york-times-business-model — The New York Times generated 68% of its revenue from subscriptions in 2023. Indeed, of over $2.4 billion in revenues in 2023, $1.65 billion came from subscriptions (both printed and digital), $505 million from advertising (printed and digital), and $264 million in other revenues. Of the subscription revenues, nearly $1.1 billion were generated by digital subscriptions, while printed subscriptions generated $556 million.

Key takeaways

Revenue streams affect a business model, and a revenue stream is an essential building block of any business. But that is only part of the story.
While complex businesses make money in many different ways. Looking at revenue streams and where the key customer is can help us assess the nature of an organization.
Focusing on revenue streams doesn’t mean ignoring the rest. In the business world, companies often praise themselves for being extremely focused on the bottom line and their key customers.
There isn’t a single way to generate revenues. You might choose a subscription business model, a freemium, a fee or membership model. That also depends upon the industry, product, and service you offer.
Picking a revenue stream is also a matter of choosing the kind of business you want to build.

Case Studies

Subscription Model

Hulu: Offers ad-supported and ad-free subscription plans for streaming TV shows and movies.
Adobe Creative Cloud: Charges a monthly or annual subscription fee for access to its suite of creative software tools.
The New York Times: Provides digital content behind a paywall with subscription options for readers.
Blue Apron: Delivers meal kit subscriptions to customers for cooking at home.

Advertising Model

YouTube: Earns revenue through ads displayed on user-generated videos.
Twitter: Displays sponsored tweets and ads in users’ timelines.
Instagram: Features sponsored posts and ads in users’ feeds and stories.
BuzzFeed: Generates ad revenue from sponsored content and native advertising.

E-commerce Model

Walmart: Sells a wide range of products through its online store.
Alibaba: Operates online marketplaces connecting buyers and sellers globally.
Zappos: Specializes in online shoe and clothing retail.
Etsy: Provides a platform for artisans and crafters to sell handmade and vintage items.

Freemium Model

Evernote: Offers basic note-taking services for free and charges for premium features.
LinkedIn Premium: Provides enhanced features, networking tools, and job insights for paying subscribers.
Mailchimp: Offers free email marketing services with premium plans for advanced features.
Zoom: Provides video conferencing services with a free plan and premium options for businesses.

Pay-per-Use Model

Airbnb: Charges hosts and guests fees for booking accommodations.
Amazon Kindle Store: Sells e-books and charges per book download.
ZipRecruiter: Charges employers based on the number of job postings and candidates contacted.
Lime: Offers electric scooters and bikes for rent on a per-minute basis.

Licensing Model

Pixar: Licenses its characters and content for use in merchandise, theme parks, and more.
Marvel: Licenses its superhero characters for use in movies, toys, and video games.
National Football League (NFL): Licenses its brand for merchandise, video games, and broadcasting rights.
Coca-Cola: Licenses its beverage formulas to bottlers and distributors worldwide.

Affiliate Marketing Model

Amazon Associates: Allows website owners to earn a commission on sales of Amazon products.
TripAdvisor: Earns commissions for referring travelers to hotels, flights, and restaurants.
Booking.com Affiliate Partner Program: Offers commissions to partners who drive hotel bookings through their websites.
Rakuten Advertising: Connects advertisers with affiliate publishers to promote products and earn commissions.

Rental Model

Hertz: Provides car rentals for individuals and businesses on a daily or weekly basis.
HomeAway: Allows property owners to rent vacation homes and properties to travelers.
Rent the Runway: Offers clothing and accessory rentals for special occasions or everyday wear.
GameFly: Rents video games to subscribers for gaming consoles.

Crowdsourcing Model

GoFundMe: Allows individuals and organizations to raise funds for various personal and charitable causes.
Kickstarter: Helps creators fund creative projects and products through contributions from backers.
Indiegogo: Supports crowdfunding campaigns for tech gadgets, films, and other projects.
Kiva: Facilitates microloans to entrepreneurs in developing countries through crowdsourced lending.

Franchise Model

Subway: Offers franchise opportunities for individuals to open and operate sandwich shops.
McDonald’s: Grants franchisees the right to operate McDonald’s restaurants using its brand and systems.
7-Eleven: Allows franchisees to operate convenience stores under the 7-Eleven brand.
UPS Store: Offers franchise ownership for local shipping and printing businesses.

Consulting and Services Model

McKinsey & Company: Provides management consulting services to businesses, governments, and organizations.
Deloitte: Offers a wide range of consulting, auditing, and advisory services.
Accenture: Specializes in strategy, consulting, digital, technology, and operations services.
Boston Consulting Group (BCG): Delivers management and business strategy consulting to clients.

Data Monetization Model

Nielsen: Collects TV viewership data and consumer insights, selling reports to media companies and advertisers.
Palantir: Develops data analytics software for government and corporate clients.
Experian: Offers credit reporting and consumer data services to businesses for marketing and risk management.
Acxiom: Provides data-driven marketing and advertising solutions to brands and marketers.

Event Ticketing Model

Ticketmaster: Sells tickets for live events, concerts, sports, and theater performances.
StubHub: Facilitates the resale of tickets for sports, music, and entertainment events.
Eventim: Offers ticket sales, marketing, and distribution services for events and concerts.
Ticketfly: Provides ticketing and marketing solutions for live events and music venues.

Gaming Model

Epic Games: Develops and monetizes video games like Fortnite through in-game purchases.
Roblox Corporation: Offers a platform for user-generated games and virtual items with in-game currency.
Electronic Arts (EA): Sells game titles and offers in-game purchases for additional content.
Supercell: Monetizes mobile games like Clash of Clans through in-app purchases.

Education Model

Coursera: Offers online courses and degrees, charging students for certificates and premium content.
Duolingo Plus: Provides language learning courses with an ad-free experience for paying users.
MasterClass: Features online courses taught by experts in various fields, available through a subscription.
Khan Academy Kids: Offers a subscription-based app for educational activities and games for children.

Healthcare Model

UnitedHealth Group: Provides health insurance plans to individuals and employers, collecting premiums.
Teladoc Health: Charges for telehealth consultations and virtual healthcare services.
Ro (formerly Roman): Offers online healthcare services and subscriptions for medications.
Healthgrades: Generates revenue from healthcare providers and advertisers for premium listings and ads.

Content Licensing Model

Getty Images: Licenses stock photos, videos, and music to media organizations, advertisers, and creatives.
Shutterstock: Offers licenses for stock photos, illustrations, and videos for various creative projects.
Adobe Stock: Provides stock assets for use in creative projects, available to Adobe Creative Cloud subscribers.
Pond5: Sells licenses for stock footage, music, and sound effects to content creators and businesses.

Key Insights

1. Revenue streams are foundational building blocks Revenue streams represent the economic value that customers are willing to pay for products and services. They play a vital role in a business model’s success and influence how a company delivers value to its customers.

2. Revenue streams vs. business models While revenue streams are crucial components of a business model, they do not fully define the entire business model. Understanding this distinction is essential for entrepreneurs looking to grow their businesses and analyze competitors effectively.

3. Importance of understanding revenue streams In the digital business world, it’s easy to focus on aspects beyond monetization. However, revenue streams are critical building blocks that require quick testing and iteration, as they ultimately determine a company’s survival and success.

4. Revealed preferences and “Skin in The Game Data” The theory of “revealed preferences” suggests that customers’ actual behavior and actions are the best indicators of their true preferences. Collecting “Skin in The Game Data,” such as valid email addresses or other valuable interactions, helps businesses gain real insights into customer preferences.

5. Complex revenue streams in digital platforms In digital platforms, revenue streams can be more complex, as key players might not be direct paying customers but still provide significant value to the organization. Understanding the dynamics of such revenue streams is essential for success.

6. Balancing bottom line focus and branding efforts While focusing on revenue streams and the bottom line is essential, neglecting branding and marketing efforts can hinder non-linear growth opportunities and long-term success.

7. Early testing of revenue streams To build a sustainable business model, entrepreneurs should start experimenting with revenue streams early on. Understanding the value customers are willing to pay for helps refine the business model and product-market fit.

8. Diverse forms of revenue streams Revenue streams can take various forms, including advertising, sponsorships, subscriptions, commissions, white labeling, and more. Companies can choose the most suitable revenue stream based on their industry and product offerings.

9. Strategic choice of revenue streams Selecting the right revenue stream aligns with the company’s passion, market demand, and long-term vision. It is a critical decision that can shape the growth and sustainability of the business.

Case Studies

Company	Revenue Model	Case Study	Analysis
Netflix	Subscription-Based Model	Netflix’s subscription streaming service	Netflix relies on monthly subscription fees, providing access to a vast library of content with no ads.
Spotify	Freemium Model	Spotify’s free and premium music streaming	Spotify offers both free ad-supported and premium ad-free subscriptions, generating revenue from premium users and advertisers.
Amazon	E-commerce and Marketplace Model	Amazon’s online retail and third-party sellers	Amazon generates revenue through product sales, third-party seller fees, and Amazon Web Services (AWS).
Google	Advertising Model	Google’s online advertising, AdWords, and AdSense	Google earns revenue by displaying ads on its search results pages and partner websites.
Apple	Hardware and Ecosystem Model	Apple’s sale of hardware and services	Apple generates revenue from the sale of hardware (iPhone, Mac) and services (Apple Music, App Store).
Airbnb	Commission Model	Airbnb’s commission from host and guest bookings	Airbnb earns a percentage from hosts and guests for each booking facilitated on its platform.
Uber	Commission and Ride Fees Model	Uber’s commission from drivers and ride fees	Uber takes a commission from driver earnings and charges riders based on distance and time.
LinkedIn	Subscription and Recruitment Model	LinkedIn’s premium subscriptions and job postings	LinkedIn generates revenue from premium subscriptions, talent solutions, and marketing solutions.
Dropbox	Freemium and Subscription Model	Dropbox’s cloud storage and file-sharing	Dropbox offers free storage with premium subscriptions for additional features and space.
Facebook (Meta)	Advertising and Data Monetization Model	Facebook and Instagram’s advertising and user data	Meta earns revenue by displaying targeted ads to users and monetizing user data.
Etsy	Handmade and Artisanal Goods Marketplace	Etsy’s platform for artisans and crafters	Etsy provides a platform for artisans to sell their unique handmade products to a global audience.
Upwork	Freelance Talent Marketplace	Upwork’s platform for freelancers and clients	Upwork connects businesses with freelance talent for various projects, spanning from writing to programming.
eBay	Online Auction and Sales Marketplace	eBay’s platform for auctions and sales	eBay allows individuals and businesses to buy and sell a wide range of goods through auctions and direct sales.
Alibaba Group	B2B and B2C E-commerce Marketplace	Alibaba’s e-commerce and wholesale platforms	Alibaba connects global buyers and sellers, facilitating trade and e-commerce transactions on a massive scale.
Turo	Peer-to-Peer Car Rental	Turo’s platform for car owners and renters	Turo enables individuals to rent their vehicles to travelers, disrupting the traditional car rental industry.
Fiverr	Freelance Services Marketplace	Fiverr’s platform for freelance services	Fiverr offers a marketplace for freelancers to offer a wide range of services, from graphic design to content writing.
TaskRabbit	On-Demand Task and Service Marketplace	TaskRabbit’s platform for taskers and clients	TaskRabbit connects individuals with skilled taskers who can complete a variety of household and business tasks.
OpenTable	Restaurant Reservation Marketplace	OpenTable’s platform for restaurant reservations	OpenTable allows users to book restaurant reservations and helps restaurants manage their tables efficiently.
StockX	Sneaker and Collectibles Marketplace	StockX’s platform for sneakers and collectibles	StockX provides a marketplace for authenticated sneaker and collectible sales, ensuring transparency and trust.
Poshmark	Fashion Resale Marketplace	Poshmark’s platform for fashion resale	Poshmark connects fashion enthusiasts to buy and sell gently used clothing and accessories.
Thumbtack	Local Services Marketplace	Thumbtack’s platform for local service providers	Thumbtack helps users find and hire local service professionals, from plumbers to wedding photographers.
HomeAway (Vrbo)	Vacation Rental Marketplace	HomeAway’s platform for vacation rentals	HomeAway offers a marketplace for vacation rentals, connecting travelers with property owners.
Booking.com	Hotel and Accommodation Booking	Booking.com’s online travel agency platform	Booking.com enables travelers to book hotels and accommodations worldwide, serving as an intermediary between customers and hotels.
Zillow	Real Estate Marketplace	Zillow’s platform for buying and selling homes	Zillow provides tools for home buyers, sellers, and renters, simplifying the real estate process.
Freelancer.com	Freelance Job Marketplace	Freelancer.com’s platform for freelance jobs	Freelancer.com connects employers with freelancers to complete a wide range of projects, from software development to graphic design.
Rover	Pet Services Marketplace	Rover’s platform for pet care services	Rover connects pet owners with pet sitters and walkers, offering a range of pet care services.
99designs	Design Services Marketplace	99designs’ platform for design contests	99designs hosts design contests, allowing businesses to receive custom designs from a global community of designers.
WhatsApp	Subscription and In-App Purchases Model	WhatsApp’s subscription and in-app sticker purchases	WhatsApp offers a free messaging service with revenue generated from subscriptions and in-app purchases.
Patreon	Membership and Crowdfunding Model	Patreon’s support for content creators	Patreon allows creators to offer exclusive content to paying members, generating income through memberships.
Shopify	Subscription and E-commerce Model	Shopify’s e-commerce platform and subscription fees	Shopify offers e-commerce solutions and earns revenue through monthly subscription fees and transaction fees.
HubSpot	Inbound Marketing and SaaS Model	HubSpot’s inbound marketing and SaaS services	HubSpot provides inbound marketing and sales software on a subscription basis, generating recurring revenue.
Airbnb for Work	Corporate Travel and Service Fees Model	Airbnb for Work’s service fees for corporate travel	Airbnb for Work charges service fees for businesses booking accommodations and experiences.
Coursera	Online Education and Certification Model	Coursera’s online courses and specialization certificates	Coursera offers courses for free or as part of a subscription, with revenue generated from paid certificates.
Yelp	Advertising and Local Business Model	Yelp’s advertising and partnerships with local businesses	Yelp offers advertising and business solutions, generating revenue through partnerships.
LinkedIn Talent Solutions	Recruitment and Subscription Model	LinkedIn’s recruitment tools and premium subscriptions	LinkedIn Talent Solutions provides tools for talent recruitment and generates revenue through premium subscriptions.
Square	Payment Processing and Financial Services	Square’s payment processing and financial services	Square offers payment processing and financial services, earning revenue through transaction fees and subscriptions.
Salesforce	CRM and Enterprise Software Model	Salesforce’s customer relationship management (CRM)	Salesforce generates revenue from its CRM software and cloud services for enterprises.
Udemy	Online Learning and Course Sales Model	Udemy’s marketplace for online courses	Udemy allows instructors to sell courses, with revenue shared between the platform and instructors.
GoFundMe	Crowdfunding and Platform Fees Model	GoFundMe’s crowdfunding platform and fees	GoFundMe facilitates fundraising campaigns and charges platform fees on donations.
Shutterfly	Photo Printing and Personalized Products	Shutterfly’s photo books, gifts, and printing services	Shutterfly generates revenue by selling personalized photo products.
Robinhood	Commission-Free Stock Trading Model	Robinhood’s commission-free stock and crypto trading	Robinhood offers commission-free trading and generates revenue through order flow payments.
Salesforce Marketing Cloud	Marketing Automation Model	Salesforce Marketing Cloud’s marketing automation	Salesforce’s marketing automation tools generate revenue through subscription and usage fees.
DoorDash	Food Delivery and Service Fees Model	DoorDash’s food delivery and service fees	DoorDash charges service fees to customers and restaurants for food delivery services.
Expedia	Online Travel Booking and Commissions	Expedia’s online travel booking and commissions	Expedia earns revenue by facilitating online travel bookings and taking commissions from hotels and airlines.
GitHub	Developer Tools and Enterprise Services	GitHub’s code hosting and collaboration platform	GitHub provides free and paid developer tools and earns revenue from enterprise subscriptions.
SurveyMonkey	Survey and Data Insights Model	SurveyMonkey’s survey creation and data analysis	SurveyMonkey offers survey tools and generates revenue from premium plans and data insights.
ZoomInfo	B2B Sales and Marketing Intelligence	ZoomInfo’s B2B sales and marketing intelligence	ZoomInfo offers B2B data and intelligence services, earning revenue through subscriptions and sales.

Related Frameworks, Models, or Concepts	Description	When to Apply
Business Model Canvas	The Business Model Canvas is a strategic management tool that provides a visual framework for describing, analyzing, and innovating business models. Revenue Streams are one of the nine building blocks of the Business Model Canvas, representing the various sources of revenue generated by a business.	Apply the Business Model Canvas to analyze and design business models, including the identification and evaluation of different revenue streams. Use it during the business planning stage or when considering business model innovation to understand how revenue is generated and how it contributes to overall business sustainability and growth.
Value Proposition Design	Value Proposition Design is a methodology for creating compelling value propositions that address customer needs and pain points. Revenue Streams are closely linked to value propositions, as they reflect the value captured by the business from its customers.	Utilize Value Proposition Design to develop value propositions that resonate with target customers and drive revenue generation. Incorporate Revenue Streams analysis to ensure that the value created for customers translates into revenue opportunities for the business, aligning value creation with revenue capture effectively.
Subscription Business Model	The Subscription Business Model involves offering products or services to customers on a recurring subscription basis, typically with regular payments. Revenue Streams in a subscription model consist of subscription fees paid by customers in exchange for ongoing access to the product or service.	Apply the Subscription Business Model to create recurring revenue streams and establish long-term customer relationships. Use it when developing subscription-based offerings or transitioning from traditional one-time sales models to subscription-based revenue models to enhance revenue predictability and customer lifetime value.
Freemium Model	The Freemium Model offers basic features or services for free while charging users for premium features or additional functionalities. Revenue Streams in a freemium model come from a combination of free users (who may generate revenue through advertising or data monetization) and premium users (who pay for access to premium features).	Utilize the Freemium Model to attract a large user base with free offerings and monetize premium features or upgrades. Apply it when developing digital products, software applications, or online platforms to maximize user acquisition and engagement while capturing revenue from users willing to pay for enhanced functionality or value-added features.
E-commerce Business Model	The E-commerce Business Model involves selling products or services online through digital channels. Revenue Streams in an e-commerce model come from online sales transactions, including product sales, service fees, subscription charges, and other revenue-generating activities conducted on e-commerce platforms or websites.	Apply the E-commerce Business Model to establish an online presence and sell products or services directly to customers over the internet. Use it when launching an online store, marketplace, or digital platform to leverage digital channels and technology to reach a wider audience and generate revenue through online sales and transactions.
Platform Business Model	The Platform Business Model facilitates interactions and transactions between multiple groups of users or participants on a digital platform. Revenue Streams in a platform model can come from various sources, such as transaction fees, subscription charges, advertising revenue, data monetization, and value-added services offered to platform users.	Utilize the Platform Business Model to create a digital platform that connects buyers and sellers, service providers and customers, or other user groups to facilitate transactions and exchanges. Apply it when building online marketplaces, social networking platforms, or sharing economy platforms to capture revenue from platform usage, transactions, and ecosystem growth.
Advertising Business Model	The Advertising Business Model relies on generating revenue through advertising placements and sponsorships. Revenue Streams in an advertising model come from advertisers who pay for displaying ads to target audiences on various media channels, such as websites, social media platforms, search engines, and traditional media outlets.	Apply the Advertising Business Model to monetize digital content, websites, apps, or media channels by displaying ads to target audiences. Use it when offering free content, services, or platforms to users and monetizing audience attention and engagement through advertising placements, sponsorships, or branded content partnerships.
Affiliate Marketing Model	The Affiliate Marketing Model involves promoting third-party products or services and earning commissions for driving sales or referrals. Revenue Streams in an affiliate marketing model come from affiliate commissions earned for each successful sale, lead, or referral generated through affiliate marketing activities.	Apply the Affiliate Marketing Model to monetize online content, blogs, websites, or social media channels by promoting affiliate products or services to target audiences. Use it when partnering with affiliate programs or networks to earn commissions for driving sales or referrals and leveraging existing audience reach and engagement to generate revenue through affiliate marketing partnerships.
Licensing and Royalties	Licensing and Royalties involve granting permission to use intellectual property, proprietary technology, or brand assets in exchange for licensing fees or royalties. Revenue Streams from licensing and royalties come from licensing agreements, franchise fees, patent royalties, or other forms of intellectual property licensing arrangements.	Utilize Licensing and Royalties agreements to monetize intellectual property assets, technology innovations, or brand properties. Apply it when licensing out patents, trademarks, copyrights, or proprietary know-how to third parties, franchising business concepts or brand names, or entering into partnership agreements that involve revenue-sharing arrangements based on intellectual property usage or exploitation.
Partnership and Sponsorship Model	The Partnership and Sponsorship Model involves collaborating with other businesses, organizations, or individuals to co-create value, drive brand awareness, or support mutual objectives. Revenue Streams from partnerships and sponsorships come from partnership agreements, sponsorship deals, co-branding initiatives, or revenue-sharing arrangements with partner entities.	Apply the Partnership and Sponsorship Model to leverage strategic alliances, collaborations, or sponsorships to generate additional revenue streams and support business objectives. Use it when partnering with complementary businesses, industry associations, influencers, or event organizers to co-market products or services, access new customer segments, or enhance brand visibility and credibility through sponsorship or co-branding opportunities.