ENTR 302: Chapter 10 - Developing Revenue Models

Which best describes revenue?

• money that a company has to work with

• money from loans, sales, and contributions

• income gained from the sale of goods or services

• income gained from sales minus the cost of creating the goods

Which term describes how a venture will create, deliver, and capture value?

• revenue driver

• business model

• financial goal

• advertising plan

A news station sells space on their website that links to other businesses. Every time a customer clicks on the links to visit these other businesses, the news station earns money. Which type of revenue model is this an example of?

• intermediation

• unit sales

• advertising

• data

Cylle installs a unique home entertainment center. He charges a flat fee of $1,200 for the system and the installation. What revenue model does Cylle employ?

• licensing

• unit sales

• data

• intermediation

Which of the following is an example of a broker working within the intermediation revenue model?

• a store owner who makes money when persuading a customer to buy one of their products

• a real estate agent who earns money when connecting homebuyers with someone selling their home

• a lawyer who makes money when providing legal advice to their clients

• a hotel owner who makes money when a tourist books a room at their hotel through their website

Which revenue model involves someone giving permission to other parties to use their protected intellectual property in exchange for fees?

• fee revenue

• licensing

• intellectual property

• intermediation

Websites like Google earn money through a cost-per-click model, in which they charge businesses money every time a user clicks on a link to the business’s website. Which revenue model is this an example of?

• advertising

• licensing

• franchising

• freemium

Which revenue model charges customers fees based on how often goods or services are consumed?

• subscription

• utility and usage

• professional

• licensing

Conducting a break-even analysis can help you set prices.

• True

• False

Depreciation can be thought of as the ______.