A [[revenue stream]] is the specific strategy chosen to generate cash from a customer segment, forming the core of your [[revenue model]]. If you serve multiple [[customer segment|customer segments]], you might employ multiple revenue streams[cite: 30]. There are several common types: 1. [[asset sale|Asset sale]]: This is the most traditional model, involving the sale of ownership rights to a physical product. Examples include selling cars, consumer goods at retail stores like Walmart, or specialized equipment. 2. [[usage fee|Usage fee]]: Revenue is generated based on the consumption of a service. The more a customer uses, the more they pay. Think cell phone plans (voice/data), cloud services like Amazon Web Services (pay-per-compute/storage), shipping services like FedEx, or metered utilities like electricity. Some solar companies now use this model, installing panels for free but charging for the power generated. 3. [[subscription fee|Subscription fee]]: Customers pay a recurring fee (monthly, annually) for continuous access to a service. Examples include Software-as-a-Service (SaaS) like Salesforce.com, streaming services like Netflix, or gym memberships. 4. [[renting|Renting]]/[[leasing]]: This grants temporary access to an asset for a fixed period in return for a fee. Examples range from textbook rentals (Chegg), camera equipment rentals (BorrowLenses), to car rentals. 5. [[licensing|Licensing]]: Revenue comes from granting permission to use protected intellectual property (IP) in exchange for licensing fees. Most software we use (Microsoft, Apple, games) is licensed, not sold; you're buying the right to use it under specific terms, not ownership. Content creation and patents also often rely on this model. 6. [[intermediation fee|Intermediation fee]]: This model involves earning a fee or commission for connecting two or more parties and facilitating a transaction between them, often found in marketplaces. Examples include Airbnb (connecting travelers and hosts), Etsy (connecting craftspeople and buyers), financial brokers (E\*TRADE), and real estate agents. 7. [[advertising|Advertising]]: Revenue is generated by selling advertising space or access to an audience (users) to third parties (advertisers). This is common in [[multi-sided market|multi-sided markets]], like Google Search or Facebook, where the service is often free to users, but advertisers pay to reach those users based on demographics, interests, or keywords. Next: [[Princing Tactics]] Back to: [[How Will You Generate Revenue?]]]