Question

give an example of a business and the type of revenue strategy they are using to earn revenue. Ex: low pricing, freemium, or unit sales.)Explain your example and how it applies to the revenue model.

Answer 1

A business starts with an idea of how to generate value for a customer. So if its a person looking for a table, we can produce a table, market it , ship it, receive payment for it

And thats our business model . The total amount of money earned in other words revenue is the coal that keeps our train running. Depending on the business models complexity, revenue will cover manufacturing, distribution, and other cost , until we get profits.

But profit doesn't keep the business alive, revenue does. Besides a simple transactional logic, there are many ways to generate revenue, cover our own expenses, distribute products and so on. That's even true for software companies web distribution and the nature of software creates various possibilities to monetize code. Think of licensed / freemium apps, service subscriptions and other.

Hope this will helps

Thank you.