Revenue stream
Encyclopedia
A revenue stream is a form of revenue
. Revenue streams refer specifically to the individual methods by which money comes into a company. Revenue streams may be characterized. For example, a revenue stream has volatility
, predictability
, risk
, and return
.
—often automated—from users of their product or service. In essence, it is a method of earning money and a way to protect it.
In "Web 2.0: A Strategy Guide", Amy Shuen identifies six types of revenue streams for Web 2.0
businesses:
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
. Revenue streams refer specifically to the individual methods by which money comes into a company. Revenue streams may be characterized. For example, a revenue stream has volatility
Volatility (finance)
In finance, volatility is a measure for variation of price of a financial instrument over time. Historic volatility is derived from time series of past market prices...
, predictability
Predictability
Predictability is the degree to which a correct prediction or forecast of a system's state can be made either qualitatively or quantitatively.-Predictability and Causality:...
, risk
Risk
Risk is the potential that a chosen action or activity will lead to a loss . The notion implies that a choice having an influence on the outcome exists . Potential losses themselves may also be called "risks"...
, and return
Rate of return
In finance, rate of return , also known as return on investment , rate of profit or sometimes just return, is the ratio of money gained or lost on an investment relative to the amount of money invested. The amount of money gained or lost may be referred to as interest, profit/loss, gain/loss, or...
.
Revenue Streams in Web Business
A revenue stream is a method that a company, organization, or individual uses to collect moneyMoney
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
—often automated—from users of their product or service. In essence, it is a method of earning money and a way to protect it.
In "Web 2.0: A Strategy Guide", Amy Shuen identifies six types of revenue streams for Web 2.0
Web 2.0
The term Web 2.0 is associated with web applications that facilitate participatory information sharing, interoperability, user-centered design, and collaboration on the World Wide Web...
businesses:
- subscriptionSubscription business modelThe subscription business model is a business model where a customer must pay a subscription price to have access to the product/service. The model was pioneered by magazines and newspapers, but is now used by many businesses and websites....
- advertisementAdvertisingAdvertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
- transaction fees
- volume and unit selling
- syndication and franchiseFranchisingFranchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
- sponsorship and co-marketing