20 revenue models for a successful business

The revenue model usually comes into play when you draw up your business plan. The model briefly states how you think you will make money with your product or service. You can select one or more revenue models.

20 well-known revenue models

There are more than fifty revenue models. Some models have been around for a long time, other ways of making money have only recently existed, such as various online sales revenue models. These are the twenty most well-known revenue models:

1. Transaction model or sale of goods

The customer pays you per. purchased product. Consider, for example, market trading. This is the best known and simplest model. Building a long-term relationship with the customer, such as with the subscription model or service model, can be difficult with this model.

2. Hour, bill

You pass on your working hours to the customer. This revenue model is mainly used by entrepreneurs in the service sector. Understanding your fixed and variable costs will help you calculate the right rate.

Free model or freemium

For example, you provide software or a service to users without them paying for it. Online search engines, social media channels and weather forecast apps are well-known examples of a freemium. Then let your customers pay for a more comprehensive version or make money by making ad space available.

4. Service model

You sell your product or service for a small amount and you mainly get your revenue from service, repair or maintenance. This model is particularly popular with the manufacturing industry, IT companies and the construction and installation sector. The benefits are a stable turnover and sustainable customer relations.

5. Bait model

You sell your product at a relatively low price and then make money by selling appropriate supplies. Well-known examples are: coffee machines, razors and printers.

6. Subscription model

The customer pays a fixed amount and in return gets access to your product or service. When you think of the subscription model, you quickly think of magazines, streaming services and gyms, but underwear and meal boxes are also perfect for this model. A big advantage of the subscription model is that customers usually pay in advance. That way, you already know what your revenue is in a given period.

7.Ad model

With this model, you do not earn so much on the sales of your product or service, but primarily on advertising revenue. Think of magazines and websites.

8. Online platform model

Supply and demand find each other on your app or website. Think of platforms for jobs or used clothing. You earn money through an agreed amount or percentage that you receive upon registration or per. transaction.

9. Product as a service (PAAS)

You are not selling a product, but the services and their use. You do this, for example, through leasing, deposit and sharing. More and more products are being offered as a service. The goal is to let products, raw materials and residual materials retain their value.

10. Personalization

You make tailor-made products and thus add emotional value. Think of clothes, glasses and sneakers. You can differentiate yourself from the competition in creativity, quality, speed and price.

11. User-designed model

Customers put together their own product on your website or design a product themselves using your software. For example, photo books or wallpaper.

12. Shipping

You sell your products through another entrepreneur. This model is common in the art trade. The artworks remain your property until they are sold. In return for displaying your artwork, the gallery receives a percentage of the sale or a fixed amount per. sold product.

13. Consumption model

The more someone spends, the higher the bill. Think, for example, of cloud services where users pay for the amount of storage space they think they need.

14. Production model

You produce something on behalf of the customer, then customization. For example, a machine for a food producer. With this model, you need to make sure that the customer’s expectations and what you can deliver are a good match.

15. Dropshipping

You sell products through an online marketplace, social media channel or your own webshop. You place an order directly with the supplier and have the goods delivered directly to the customer. So you do not have to keep stock and set up a logistics process yourself.

16. Webshop

You sell products through your own online store. This is the best known online revenue model. Advantages: you can reach a larger target group than with a physical store and you can more easily expand your range.

17. Rental model

You offer products that customers can rent. Think of cars, machines or tools. The goods remain your property, which means you can offer the same product over and over again. Remember the cost of maintenance, insurance and storage.

18. Affiliate Marketing

You promote products or services from other companies on your website. Is a customer contact or a purchase a result of this? Then you will receive a percentage or agreed amount.

19. Prize

The user pays a one-time fee to access your online product. This model works well when there is high demand and little competition. Think of commonly used software licenses and popular games.

20. Licensing model

You ‘rent out’ the property rights to your product to other companies. With your permission and for a fee, they may, for example, print mugs and T-shirts with your logo.

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