Business Model Generation Playbook

Revenue Streams

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Important for this playbook

Revenue streams are the way in which a business generates revenue. There are many different revenue streams that businesses can use, each with its own advantages and disadvantages. In this article, we will take a look at some of the common revenue streams and how they are related.

Flat Rate and Subscription

The “Flat Rate” and “Subscription” revenue streams are similar in that they both involve a consistent revenue stream. Flat rate charge customers a fixed amount for a product or service, while subscription charges customers on a recurring basis, such as monthly or annually. Both revenue streams offer predictable revenue for the business and a stable source of income for the customer.

Pay Per Use and Performance-Based Contracting

The “Pay Per Use” and “Performance-Based Contracting” revenue streams are both based on usage. Pay per use charges customers based on how often they use a product or service, while performance-based contracting charges customers based on the results of using the product or service. These revenue streams align the interests of the business and the customer by ensuring that the customer pays only for what they use and the business receives payment based on the value provided.

Licensing and Franchising

The “Licensing” and “Franchising” revenue streams involve allowing others to use your product or service for a fee. Licensing allows others to use your intellectual property such as patents or trademarks, while franchising involves allowing others to open and operate a business under your brand name. Both revenue streams allow businesses to expand their reach and generate revenue from others using their products or services.

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Crowdfunding illustration



Finance product development through a crowd of investors

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Supply a complete and fully operational product for an optional donation

Flat Rate illustration


Flat Rate

All you can eat

Fractional Ownership illustration


Fractional Ownership

Increase usage efficiency by sharing assets among a group

Franchising illustration



Sell the right to use a brand and business model

Hidden Revenue illustration


Hidden Revenue

Cross-finance your end-user product with third-party revenue

Leasing illustration



Grant customers exclusive rights to a product for a limited period of time

Licensing illustration



Develop intellectual property to license to third parties

Microfinance illustration



Facilitate or fund small loans with relaxed requirements for collateral

Pay Per Use illustration


Pay Per Use

Only charge for actual metered usage

Performance-Based Contracting illustration


Performance-Based Contracting

Price a product based on the value it delivers rather than its face value

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Offer a product or service for a regular recurring fee

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Virtual Economy

Sell virtual goods online

Rent Instead of Buy illustration


Rent Instead of Buy

Customers pay for the temporary right to use

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