A revenue stream is a source of revenue of a company or organization. In business, a revenue stream is generally made up of either recurring revenue, transaction-based revenue, project revenue, or service revenue. In government, the term revenue stream often refers to different types of taxes. – Wikipedia
Revenue Streams are the various sources from which a business earns money from the sale of goods or provision of services. The types of revenue that a business records on its accounts depend on the types of activities carried out by the business. Generally speaking, the revenue accounts of retail businesses are more diverse, as compared to businesses that provide services.
Examples of Revenue Streams
Revenue streams categorize the earnings a business generates from certain pricing mechanisms and channels. To describe it simply, a revenue stream can take the form of one of these revenue models:
- Transaction-based revenue: Proceeds from sales of goods that are usually one-time customer payments.
- Service revenue: Revenues are generated by providing service to customers and are calculated based on time. For example, the number of hours of consulting services provided.
- Project revenue: Revenues earned through one-time projects with existing or new customers.
- Recurring revenue: Earnings from ongoing payments for continuing services or after-sale services to customers. The recurring revenue model is the model most commonly used by businesses because it is predictable and it assures the company’s source of revenue as ongoing. There are many different types of recurring revenue streams:
- Subscription fees (e.g., Netflix‘ recurring revenue stream)
- Renting, leasing, or lending assets
- Licensing content to third parties
- Brokerage fees
- Advertising fees
Culled – https://corporatefinanceinstitute.com/resources/knowledge/accounting/revenue-streams/
Examples of Revenue Streams from investing in Spoken Word Poetry
Product Endorsements: are a form of advertising that uses famous personalities or celebrities who command a high degree of recognition, trust, respect or awareness amongst the people. Such people advertise for a product lending their names or images to promote a product or service.
Brand Ambassadorship: sometimes also called a corporate ambassador, is a person who is hired by an organization or company to represent a brand in a positive light and by doing so help to increase brand awareness and sales.
Merchandise: Household, personal use, or commercial goods, wares, commodities, bought and sold in wholesale and retail.
Commission as a manager/ agent: someone who is paid a percentage of the sales/ revenue he or she generates.
Information products: is an article (often digital) where data and information are structured in a specific format to instruct, educate or guide the consumer in order to meet a predefined purpose. Format can be written, audio, video or a combination.
Digital Sale: refers to the process of selling advertising space on digital mediums such as websites, blogs, social media platforms, digital magazines, and any other digital properties.
Access fees to exclusive shows: an amount of money that you pay in order to be allowed into an event.
Sponsorship: to support a person, organization, or activity by giving money, encouragement, or other help.
Franchise: A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration.
Licensing content: content licensing is distribution of media assets/intellectual property to any third party, generally for a fixed term, and for a negotiated fee.
Advertising fees: expenses associated with promoting an industry, entity, brand, product or service. They cover ads in print media and online venues, broadcast time, radio time and direct mail advertising
Subscription fees: A subscription is an amount of money that you pay regularly in order to belong to an organization, to help a charity or campaign, or to receive copies of a magazine or newspaper. You can become a member by paying the yearly subscription
Compiled by Olumide Holloway