10 – Revenue & Taxation

Revenue

Whether you choose to sell directly to your customer or to go through someone else, you probably want to get paid.

The way you get paid, also known as your revenue stream, will depend largely on the type of product or service you offer and how your customer comes into contact with it. To help you find what is best for your customer and your business, consider the following revenue models.

Type	Description	Example
Direct Sale (or Indirect)	This is your traditional sale. You get money, the customer gets the goods or service.	Bakery
Subscription	The customer pays you for continuous use of a service.	Netflix or a monthly gym membership
Usage fee	The customer pays you for how much of your product or service is used.	Cell phone that charge by the minute or a utility company like Duke Energy
Renting/Leasing	The customer pays you for temporary use of your good.	Apartment rentals or car leases
Brokerage/Referral Fee	You receive a small fee for helping your customer find what she needs.	Real estate broker or a dating site
Advertising Fee	You receive payment by allowing advertisers to reach customers through you.	Google or magazines
Licensing	The customer pays for permission to use your good or service, but ownership is not transferred.	Microsoft Office

Taxation

The form of business you operate determines what taxes you must pay and how you pay them. The following are the four general types of business taxes.