What is Revenue Model

The source of revenue generation for any business. For a VC the revenue can come from advertisements posted at the site, from the subscription obtained from members of the VC, from the selling of stuff at the VC, and so on.

The part of the business model describing the revenue sources, their volume and their distribution.

The method of value capturing that includes the description of the sources of revenue, price-quotation principle, and cost structure.

Components of business model that define the sources of revenue for the organization.

A key component of the business model is the revenue model, which is a framework for generating revenues. It identifies which revenue source to pursue, what value to offer, how to price the value, and who pays for the value. It is a key component of a company's business model. It primarily identifies what product or service will be created in order to generate revenues and the ways in which the product or service will be sold.