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Sunday, August 17, 2014

Revenue Stream 08-18




Revenue Stream

•      The cash a company generates from each customer segment
•      For which value is each customer segment truly willing to pay?
•      Revenue streams for different segments may have different pricing mechanism
–     Fixed price list
–     Bargaining
–     Auction
–     Market dependant
–     Volume dependant
–     Yield dependant on inventory
•      For what do customers currently pay?
•      How are customers currently paying?
•      How would they prefer to pay?
•      How much does each customer revenue stream contribute to overall revenues?
Ways to generate Revenue Streams:
–     Asset Sale: Selling ownership rights of products
–     Usage fees: phone services, hotels
–     Subscription fees: Access to service, annual fees, gyms, mobile..
–     Lending/renting/leasing: Temporary rights to use
–     Licensing: Permission to use protected intellectual property in exchange for licensing fees

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