A Business Model as a Revenue Source

Summary 

The business model is the abstract representation of the organization, whether rational, printed or graphic, of all centre-related design, cooperation and budget game plans, composed and developed by an organization instantly and later on and additionally all centre items and administrations the organization offers.

Practical Implication 

The Recurring Revenue Model (Subscription Model)

With the recurring revenue model, the point is to secure the client on a long haul contract, so they devour your item or administration well into what’s to come. Given that the expense of client securing can be high, holding clients is an essential objective for most organizations. It is likewise getting to be synonymous with ‘subscribing through direct charge.’ Most utility suppliers work under this model (Teece, 2010).

Learning Points

1. The business model is the best source of making more revenue
2. The model has other elements that lead to its success
3. The availability and access of a business model is an ideal facet towards business success
4. The outcomes of a business model are more revenue
5. The model must be crafted towards a better business using key performance indicators

Critical Analysis

Plans of action are utilized to portray and characterize organizations, particularly in an entrepreneurial setting. Yet, they are additionally used by supervisors inside organizations to investigate conceivable outcomes for future improvement. Extraordinary plans of action can work as “formulas” for innovative supervisors. This is helpful amid organizations as it helps in profit as well as other revenue generation.

Reference;

• Teece, D. J. (2010). Business models, business strategy, and innovation. Long-range planning, 43(2), 172-194.