Revenue models

Revenue models Revenue models specifically describe different techniques for generation of income. The

Describe methods of main revenue models are shown in the second column of Figure 2.12. For existing com-

generating income for . .

an organisation panies, revenue models have been based upon the income from sales of products or services. This may be either for selling direct from the manufacturer or supplier of the service or through an intermediary that will take a cut of the selling price. Both of these revenue models are, of course, still crucial in online trading. There may, however, be options for other methods of generating revenue: perhaps a manufacturer may be able to sell advertising space or sell digital services that were not previously possible. Activity 2.3 explores some of the revenue models that are possible.

Activity 2.3

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Borrowing Basics

Borrowing Basics

Some small business persons cannot understand why a lending institution refused to lend them money. Others have no trouble getting funds, but they are surprised to find strings attached to their loans.

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