A01 chaf6542 06 se fm indd

Part 1  Introduction

Revenue models

Revenue models

 specifically describe different techniques for generation of income. For 

existing companies, revenue models have mainly been based upon the income from sales of 

products or services. This may be either for selling direct from the manufacturer or supplier 

of the service or through an intermediary that will take a cut of the selling price. Both of these 

revenue models are, of course, still crucial in online trading. There may, however, be options 

for other methods of generating revenue; a manufacturer may be able to sell advertising 

space or sell digital services that were not previously possible.