What is a Revenue Stream? Get to Know the Types and Examples For Your Business

Have you ever heard of the term revenue stream? If you have a business, whether it's just starting out or already growing, understanding this concept is very important! 

Well, in short, revenue stream is the main source of income in a business, which determines how stable and profitable your business is.

Without a clear and optimal revenue stream, it is difficult for businesses to survive in increasingly fierce competition. 

Many business owners focus only on selling products or services, without thinking about how to optimize other income streams. 

In fact, there are many creative ways to expand your revenue stream so that your business makes more money! 

Before discussing the types, let's first understand the concept of revenue stream more specifically. Make sure you read this article completely, so you don't miss any information, OK!

What is a Revenue Stream and Why is it Important?

Revenue stream is the way a business makes money from a product or service. Still confused? So an example of a revenue stream is a restaurant whose sales are not just from food on site. 

However, you can also get income from delivery services, catering packages, or even selling exclusive merchandise. Well, dalam Business Model Canvas (BMC), BMC's revenue stream is one of the crucial elements that determines how a business can continue to develop. 

Having more than one revenue stream can help a business remain stable, even when one source of income experiences a decline. 

For example, during the pandemic, many restaurants switched to the cloud kitchen model or sold frozen food. Of course, this is an example of a revenue stream that is flexible and can adjust to market conditions. 

Read Also: The Importance of Chart of Accounts (CoA) in Business Accounting Systems

Types of Revenue Streams that You Can Implement

After understanding what is meant by revenue stream, now is the time to find out the various types of revenue streams that can be implemented in your business. Not all businesses rely on just one source of income. So, here are several types of revenue streams that are commonly used:

1. Direct Sales Based Revenue Stream

This type is the most common revenue stream, namely when customers pay for products or services directly. An example of a revenue stream is food and drink purchases at restaurants, selling retail products in stores, or hope for professional consultation.

2. Revenue Stream from Subscriptions

This model allows customers to pay a recurring fee over a certain period of time to continue enjoying the service. For example, a weekly healthy food subscription package, exclusive restaurant membership with various benefits, up to lPOS software subscription service for culinary businesses.

3. Revenue Stream from Licenses or Royalties

If your business has a unique product or concept, you can earn income from licensing or royalties. For example franchise food business through royalty fees, license to use exclusive recipes, and digital products that other parties can use by paying for copyright.

4. Revenue Stream from Commission or Broker

Many businesses earn income from a commission system, such as pan online food ordering platform that takes a commission from every transaction. 

Or it could be a marketplace that charges sellers a fee for each sale. Apart from that, there are also affiliate programs, which is when businesses earn commissions from customer referrals.

5. Revenue Stream from Advertising or Sponsorship

If your business has a large customer base, you can get revenue from advertising. For example, restaurants that collaborate with beverage brands to display their logos. You can also go through a culinary log that monetizes its content through advertising.

Optimizing Revenue Streams in Business

After understanding the types of revenue streams, the next step is how to optimize them. Developing a revenue stream is not just about increasing sources of income, but also about making it more effective and profitable.

1. Understand Customer Habits

The first step is to research customer habits. Knowing how customers interact with your business can help determine the most potential revenue streams. 

So, you can use transaction data to understand what products are selling best and how customers make purchases.

2. Diversify Income Sources

The next strategy is don't just depend on one source of revenue. For example, if you have a restaurant, try adding catering or frozen food services. The goal is for the business to continue running despite changes in market trends.

3. Use Technology to Manage Revenue Streams

Another strategy is to utilize technology, this is very important! Modern businesses need systems that can help analyze and optimize revenue streams.

For example, using a platform that can provide revenue projections and detect opportunities to increase sales.

Read Also: Want your business to run smoother? Forecast Is the Answer! Here are the tips

Conclusion

Managing revenue streams manually can be a big challenge, especially if your business starts to grow. This is where technology plays an important role. One of the best solutions that you can use is OLIN AI by ESB.

OLIN AI by ESB is a superior feature of ESB designed to help culinary businesses optimize revenue streams with data-based analysis. Oh yes, excellence OLIN AI by ESB there are lots, you know! 

The first advantage, namely sales projections with up to 90% accuracy so mhelp you with financial planning and business strategy. Apart from that, there is also automatic detection of fraud indications.

This helps you to mAvoid potential losses due to suspicious transactions. With OLIN AI by ESB, you can monitor business health anytime and anywhere via an easy-to-use dashboard. 

All data is processed automatically in the ESB system which guarantees security. Don't forget to take advantage of technology, such as OLIN AI by ESB so that revenue stream management is more effective and data-based. 

So, are you ready to develop your business with a stronger revenue stream? Come on, start now and maximize your business potential!