A revenue model is a framework for generating financial income by detailing the various sources of revenue a business will utilize to achieve profitability. It outlines how a company plans to make money through its operations, including the sale of products or services, subscription fees, advertising revenue, licensing fees, or other streams. The revenue model defines the strategic approach a company uses to generate cash from each [[customer segment]]. It is about *how* and *why* a customer pays, focusing on the value exchange, rather than just the amount. In contrast, [[pricing]] refer to the specific strategies employed to set prices for goods or services in order to maximize sales and profits in the short term; these tactics can vary frequently based on market conditions and competition, whereas a revenue model typically remains more constant over time.