Revenue Model Comparison

// Model | Revenue formula | Key metric | Risk

// MODEL 1: SUBSCRIPTION SaaS
// Revenue: MRR = sum(active_subscriptions × monthly_price)
// Key metric: MRR growth rate, churn rate, NRR
// Risk: Churn — even 5% monthly = 46% annual customer loss
// Strength: Predictable, recurring revenue enables planning
// Example: Slack, Notion, Linear

// MODEL 2: MARKETPLACE / PLATFORM
// Revenue: GMV × take_rate
// Example: $1M GMV × 5% take rate = $50K revenue
// Key metric: GMV growth, take rate sustainability, liquidity
// Risk: Disintermediation — buyers and sellers transact off-platform
// Example: Stripe (2.9% take rate), Airbnb, Upwork

// MODEL 3: USAGE-BASED (metered)
// Revenue: units_consumed × price_per_unit
// Key metric: DBP (daily billing peak), cohort expansion
// Risk: Unpredictable revenue; customers optimize usage to reduce bills
// Example: AWS, Twilio, OpenAI, Stripe

// MODEL 4: PROFESSIONAL SERVICES
// Revenue: hourly_rate × hours OR project_fee
// Key metric: utilization rate, project margin, repeat client rate
// Risk: Not scalable — revenue tied to headcount

// MODEL 5: TRANSACTION FEE
// Revenue: transaction_value × fee_percentage
// Key metric: transaction volume, frequency, average transaction size
// Example: Shopify (0.5-2% on transactions), PayPal

// BLENDED MODELS (common in practice):
// SaaS + usage overages: base subscription + pay-as-you-go above limits
// SaaS + services: product revenue + implementation/training revenue
// Marketplace + SaaS: listing fee + subscription for seller tools