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         5        Revenue Streams


                  The Revenue Streams Building Block represents              A business model can involve two diΩerent types of Revenue Streams:
                  the cash a company generates from each Customer            1.  Transaction revenues resulting from one-time customer payments
                  Segment (costs must be subtracted from revenues to         2.  Recurring revenues resulting from ongoing payments to either
                  create earnings)                                             deliver a Value Proposition to customers or provide post-purchase

                  If customers comprise the heart of a business model, Revenue     customer support
                  Streams are its arteries. A company must ask itself, For what value
                  is each Customer Segment truly willing to pay? Successfully
                  answering that question allows the fi rm to generate one or more
                  Revenue Streams from each Customer Segment. Each Revenue
                  Stream may have diΩerent pricing mechanisms, such as fi xed list
                  prices, bargaining, auctioning, market dependent, volume depen-
                  dent, or yield management.





































          !"#$%&'(%)*+(%,,---53                                                                                                       /012013---245.-67
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