Revenue Streams
1. Recurring Revenue- From ongoing payments for continuing services or after-sale
services to customers. Example- Subscription fees, renting or leasing, brokerage fees.
2. Transaction Revenue- One-time customer payments. Ex- If you buy single bottle of
coke then it will cost you one-time, no other cost will occur to the customer until and
unless he buys another bottle of coke.
3. Usage revenue- The more you use the service, the more fees will be charged. Example-
Mobile data bill, Electricity charges, etc.
4. Per-feature Revenue- The more the features of the product, the more price will be
charged. Example- Laptops with different features will be charged differently.
5. Customer segment Pricing- Different segments of customers will be charged
differently. Example- Airlines charge differently to the customers on the basis of their
income-level. Economic-class, Business-class, 1st class.
6. In-app Purchases- Ex- Virtual goods like weapons in video-games.
7. Consulting and Coaching- Providing information and knowledge about the specific
niche and providing expertise to the consumers.
8. Franchising- Expanding a successful business by selling the franchise licensing. Works
for food or clothing or footwear brands. Example- Hush Puppies, McDonalds, Jockey,
etc.
9. Print-on-Demand- Providing the clothing, cups, posters, shoes, or anything which
require printing. Providing the custom printed products to the customers in such a way
that they do not have to worry about the keeping inventory or inventory-management.
10. Dropship- Dropship means having an e-commerce business with no inventory. In drop
shipping, the business directly supplies the product from the manufacturer to customer
without maintaining any inventory. For example, I sell lamps on my e-com website. I
have a supplier on Alibaba. Whenever I’ll get an order on my e-com website, I’ll put the
same order in my supplier’s Alibaba page and put the location of my customer there. The
supplier will directly deliver the product to my customer.
11. Drop service- This is same as drop shipping but for services. Basically, I find one
customer from US which needs services for video editing. And I find one freelancer
from Bangladesh. I hire that freelancer and give him the same project which I have taken
from my US client. He charges $100 for the service and I give that same edited video
which I got from the freelancer to my US client and I charge my US client $800. I make a
profit of $700 in between.
12. Sponsorships- Partnering with other brands and promoting their brands in your events
and in exchange of sponsorship fees.
13. Dynamic Revenue- The price of the product/service is dynamic. Ex- Auctions,
Negotiations.
14. White Labeling Charges- Taking goods from a local manufacturer and putting your tag
on that same product and selling it.
15. Intrapreneurship- a system that allows an employee to act like an entrepreneur within a
company or other organization. It’s more like a revenue-model.
Example- 1. A cybersecurity software that helps businesses protect their data and prevent cyber-
attacks. Or A cloud-based supply chain management software to help businesses streamline their
inventory and logistics operations.
2. Software as a Service-
• Virtual event management software
• AI-powered customer support tool
• Healthcare practice management software
• Personal finance management app
• Virtual event management software
• AI-powered customer support tool
• Healthcare practice management software
• Personal finance management app
• AI-driven personal assistant app
• Legal document management and e-signature software
• Project management software for creative agencies
• AI-driven lead scoring and qualification tool
• Online food ordering and delivery platform
Revenue Projections
Start-up
1. Get the market-size of that niche
2. Get to your targeted market in percentage out of the total market-size.
3. Get your yearly revenue according to that. Example- You are a social-media marketing
agency. Market-size of social media marketing in India is $1.28 billion and the growth
rate in 3.87%. Even if we target 5% of the total market, then our revenue for the first
year will be $64 million dollars. And then increase that by 3.87% every year.
Existing
1. Marketing approach- For example- In year 2020, you spent $50,000 on your
marketing and your growth was 10% from pervious. In year 2021, you spent
$1,00,000 on marketing, and your growth rate was 20%. If we have to project
revenue for 2022, then we can take the hint from that year’s expenditure on
marketing.
2. Sales approach- For example- In 2020, my sales was $100, in FY2021, it became $120
and in FY2022, it got to $150. To project the revenue of year 2023, I have to get few
things clear, which are- Growth rates and increase in growth. In the above case, in 1st
year the growth rate was 20% and the second year was 25%. Here, I can see that sales
are increasing, and increase in the growth rate is 5%. Therefore, to get the sales for
FY2023, I’ll increase the growth rate by 5% which will be 30%. The number will be
$195.
(*Use graphs for revenue projections.)
