Revenue Models Essay

Revenue Models Essay

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A revenue model defines as in a business how a trade or commerce produces returns from the product or services that the business provides (1).This is one of the most important model of the business model. As a current business wants to involve in the new upcoming areas of trade it should be able to defend the new competitors in the market. Therefore, a business needs to create their revenue models wisely. At the beginning of the business one need to keep in mind to build a good revenue model as it is important to keep up the business growth initially as the stockholders are very much concerned and intelligent in investing their shares in the business.(1)
Defining the revenue model of the business and also judging how to price the products and technologies that are manufactured by the business are the most crucial part in development of products and tools. Finally the business model is includes by pricing the products and technologies and the revenue model which effects the marketing decisions by means of the customer service decisions.(2) The revenue model is used for middle and lengthy period estimates of a company’s revenue process and procedures and also by what means a business is going to get income, profits and produce more returns on what a business has invested.(3) The effect of revenue model and set a price judgments are difficult and have a basic effect in what way the business is going to operate. Every business is going to have their own innovative revenue model.
Finally there are many different revenue models that a business is going to consider and also reinvent their revenue models. The revenue model finally needs to satisfy the customer and client decisions. Many busine...

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...rehend it, and specifically address it. (5)

1. Earn Laniado, “Revenue model types”, 2nd April 2013,
2. Brian Swift, “The Revenue Model”, April 2014.
3. Edward Giesen, Saul J. Berman, Ragna Bell, Amy Blitz, "Three ways to successfully innovate your business model", Strategy & Leadership (2007), Vol. 35 Iss: 6, pp.27 – 33. .
4. Jung Wha Han and William R. Boulton, Strategic Responses of U.S. Firms to the Japanese Competitive Challenge, “Strategic Analysis Models” , Volume 3, 1992, pp. 69-90.
5. David Ehrenberg, “7 Steps to Developing Your Revenue Model”, 22 April 2013

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