Change your revenue model and boost your turnover

The article Revenue models for a successful business explains the most common revenue models. This article takes a closer look at changing your business model. It tells you what to look out for and how to choose the model best suited to you. 

What is a revenue model?

A revenue model is the way your business makes money. Some entrepreneurs charge an hourly rate, others sell products or offer subscriptions. By choosing the right revenue model, you can be more responsive to what your customers want and increase your sales.

Find out which revenue model works for you

Not every model fits every business. Ask yourself these questions:

• What am I selling?  Is it a product or a service? Is it one-off or repeat use? Subscriptions work well for repeat products. You can also offer a service in packages.
• Who is my customer? Individual or company? Large or small budget? Without customers, no turnover. To know which revenue model is right for your business, it is important to know what your customers want. Always do customer research first, so you can more easily determine what works for your customers. With the data from your research, look at the commonly used revenue models below. Choose one, or combine them. Companies like predictable costs (subscription, licence). Consumers (individuals) often want to try or see something first (freemium).
• Can I grow my offering without a lot of extra work? Online products, training courses or licences are easy to expand. Hourly billing is not.
• How much time and money do I have now? Do I have room to invest or do I want quick results? An hourly rate provides immediate income. A platform or subscription requires more start-up time.
• What suits me as an entrepreneur? Do I like to work personally for someone or do I prefer to work in the background? Do I want regular clients or new ones all the time? Choose a model that suits your way of working. That way, you will keep it up and build a healthy business.

Common revenue models

The free model or freemium

You offer something without customers having to pay. Think of a free app, blog or service. You make money with ads, sponsors, or by getting customers to buy something later, such as an expanded version, a version without advertising, or personal advice.

Does this model suit me?

This model suits you when you provide a digital product or online service. And if audience research shows that your customers want to try something without risk or obligation. You can also use this model to increase your brand awareness or visibility. With this, you build customer trust, so that your visitors are willing to pay for your other offerings.

User-designed model

The customer designs their own product, such as a t-shirt, mug, or photo book. You take care of production and shipping. You earn from the sale of the final product.

Does this model suit me?

A user-designed revenue model suits you if you want to spend little time on design or customisation yourself. And when your customers are looking for a product they can personalise themselves. For this model to succeed, you need a user-friendly design tool.

Online platform

With this business model your app or website, the online platform, brings supply and demand together. You earn money through transaction costs, membership costs, or advertising sales.

Does this model suit me?

An online platform works when you can bring supply and demand together for your target group. And when you have the time and the means to build and manage the platform, or have it built for you.

Subscription model

Customers pay monthly or annually for access to a service or product. You make money through recurring payments. This model is regularly used in gyms, coaching, or selling flowers, software, or meal boxes, for example.

Is this model right for me?

The subscription model suits you if your customers need your product or service more often. And when you have a strong offer so that customers want to stay with you. You will have to renew or improve your offer regularly.

(Online) shop model (selling goods)

You sell products via an online or physical shop. You make them yourself or buy them. You earn money through direct sales. Dropshipping is an option if you do not want stock.

Is this model right for me?

The shop model suits you if your customers are looking for your product and like to buy it in a shop. This model works best if you know what your customers are looking for and how to reach those customers. Market research helps you do this.

Hourly billing

You sell your time, knowledge, or skills. Many self-employed people in healthcare, construction and services use this model. You charge a fixed rate per hour or per assignment.

Is this model right for me?

Hourly billing suits you if your clients want customised work and direct contact is important.

Licensing model

You sell the right to use your knowledge, software, or method. You earn money through annual or monthly licence fees, without having to deliver anything each time.

Is this model right for me?

The licensing model is useful when your customers are looking for your unique knowledge, method, or software. Often, your customers are companies or partners.

Rental model

You rent things or spaces, such as tools, machines, or office space. You earn money through fixed or flexible rental income.

Is this model right for me?

The rental model suits you if your clients are looking for equipment or spaces they can use temporarily without having to buy and maintain it themselves. And if you can plan and manage well.

How to change your revenue model

You do not have to change your entire revenue model right away. For example, test a subscription form alongside your current services. Or offer a free entry product with paid extras. Many entrepreneurs combine several models. Announce the new option to your customers. For example, via your newsletter, website, or social media.