The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings) If customers comprise the heart of a business model, Revenue Streams are its arteries. A company must ask itself, For what value is each Customer Segment truly willing to pay? Successfully answering that question allows the fi rm to generate one or more Revenue Streams from each Customer Segment. Each Revenue Stream may have diΩerent pricing mechanisms, such as fi xed list prices, bargaining, auctioning, market dependent, volume depen- dent, or yield management. Revenue Streams A business model can involve two diΩerent types of Revenue Streams: 1. Transaction revenues resulting from one-time customer payments 2. Recurring revenues resulting from ongoing payments to either deliver a Value Proposition to customers or provide post-purchase customer support r$ 5 bmgen_final.indd 30 6/15/10 5:32 PM

Business Model Generation Flipbook - Page 36 Business Model Generation Flipbook Page 35 Page 37