Examples of Hidden Revenue Business Model This way, the company can make the platform user-friendly and effective while the third party pays more for the growing crowd. The main objective of this model is to separate revenue generation and customers. So, they pay the platform owner to gain access to its users’ interactions. The third parties need the platform audience to promote their products and services. This group cater for the costs and pay the company to access its customers. The last party is the third party or publishers. They interact and perform their desired actions on it without paying any cost. This party uses the product or service for free. The second party is the user or customer. Related: Roku Business Model – How Does Roku Work and Make Money? However, it generates revenue through these products and services from other sources. But it does not charge the customers any fee for using their products and services. The first party is the company that creates a product or service that customers can use to achieve a certain goal. How Does the Hidden Revenue Business Model Work?Īs the term suggests, the revenue generation in this type of business is hidden. So, customers use the platform for free, the company utilizes the users’ actions to make money from the third parties without disclosing the same to them (users). This means the revenue generation is not disclosed to the customers. In other words, the customers do not contribute revenue to the company directly.Īlso, they do not know whether third parties are paying for their actions on the platform. But any action they take on the platform has a potential revenue benefit to the service provider. The customers use the company’s services without paying a dime. However, they make revenue through the users by charging third parties. The goal is to remove the user out of the revenue generation formula. Hidden revenue business model is a common strategy for companies offering free services on their platform. What is the Hidden Revenue Business Model? However, such companies still make some revenues.īut how is that possible? The secret is the use of hidden revenue business model. Also, some businesses offer platforms that allow customers to access different types of content without paying a dime. Others develop a platform and charge anyone who wants to use them. Some businesses opt to create products and services that they sell to customers. 6 Business Secrets You Won’t Hear in School
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