Choosing the Right Revenue Model

How Will You Make Money?

Your Revenue Model is the specific way your business generates income. Picking the right one changes your entire growth strategy.

3 Popular Models for Startups

1. Subscription (SaaS): Recurring monthly/annual fees. Great for predictable revenue.
2. Marketplace: Taking a % (commission) of transactions between buyers and sellers. Scales fast but hard to start.
3. Direct Sales: One-time purchase of a physical or digital product. High immediate cash flow.

Which one fits you?

• If you have high customer acquisition costs (CAC), you need a model with high LTV (Life-Time Value), like subscriptions.
• If you are a middleman, you are a Marketplace.

** Funders love Recurring Revenue. If you can turn a one-time product into a subscription or "consumable" model, your business valuation often doubles. **

Steps to Implement

1. Select your primary model in the Financial Plan form.
2. List your specific streams (e.g., "Basic Tier", "Premium Tier").
3. Explain your pricing logic—why did you choose that price?