Types Revenue stream

1 types

1.1 recurring
1.2 transaction based
1.3 project revenue
1.4 service revenue

types

on basic level, revenue stream made of 1 of following revenue models. revenue models can more or less desirable based on how effort business needs invest.

recurring

recurring revenue more predictable type of revenue. means, business has reasonable assurance, revenue occur @ regular intervals. example of monthly phone plans. unless contract broken or customer not pay, phone business can count monthly revenue. recurring revenue streams harder implement more economical in long run.

transaction based

these revenues based on predictable sales of goods. revenue earned transaction customer. customer in clothing store, buying new jacket, generates transaction based revenue. type of revenue considered less attractive recurring model because action required attract customers.

project revenue

these revenues generated through 1 time projects. companies rely entirely or largely need invest lot of effort maintaining customer relationships. in type of model, revenue hard predict, because hard business know lies further down road.

service revenue

this least attractive revenue model, because while other 3 models sell goods, model sells time. service revenue model used in combination 1 of other models. example of service based model consulting firms. offer advice , commonly charge per hour.