Business Models & Revenue

Partner earns commission for referred customers.

Average Revenue Per Account.

Average Revenue Per User.

Business-to-business model selling to companies.

Business-to-consumer model selling to individuals.

Customer Acquisition Cost: cost to acquire a customer.

Costs directly tied to delivering the product/service.

Selling complementary products to existing customers.

Direct-to-consumer brand selling without intermediaries.

Free tier with paid upgrades for premium features.

Gross Merchandise Value: total value of transactions on a marketplace.

Revenue minus cost of goods sold, as a percentage.

Charging for the right to use software/IP under terms.

Lifetime Value: expected revenue from a customer over time.

Platform connecting buyers and sellers, often taking a commission.

Time to recover CAC from gross profit.

A mechanism restricting access until payment.

Model where partners split revenue based on an agreement.

A recurring payment based on usage or revenue for licensed IP.

Software as a Service: subscription-based software delivered online.

Recurring payment model for ongoing access.

Percentage of transaction value captured by a marketplace.

Profitability per unit (customer/order), crucial for scaling.

Selling higher-tier features or more capacity to existing customers.

Pricing based on consumption (API calls, seats used, data volume).