A Revenue Stream is a distinct source of income for a business. A company can have a single revenue stream or multiple streams from different products, services, or customer segments.
Types
- Recurring: Subscriptions, retainers (predictable).
- Transactional: One-time sales (variable).
- Service: Fees for time or expertise.
- Project: Fixed-price engagements.
The Value-First Perspective
Align your revenue streams with Value Creation.
- Avoid the Managed Services Trap where revenue depends on inefficiency.
- Seek streams where your success is tied to the client’s success (e.g., performance-based, or subscription where retention is key).
- Diversify streams to build resilience, but ensure they all reinforce the core Brand Promise.