Revenue Model

The specific way a business earns money: subscriptions, transactions, advertising, licensing, marketplace fees, or a mix. One piece of the broader business model.

Why it matters

The revenue model shapes everything from pricing to what metrics matter to how you must grow. Choosing one that fits how customers want to pay, and that scales, is a foundational strategic decision.

For example

A media startup earns through a mix of subscriptions, sponsored content, and events, rather than relying on advertising alone.

Worth your time

All Revenue is Not Created Equal Above the Crowd · article Gurley on why the quality and durability of revenue, not just the amount, decides what a business is really worth. Open abovethecrowd.com →

Related terms

Go deeper

See how founders actually handle this on Growing and marketing, part of the Starting Up hub.

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