Revenue streams can be defined as a method by which businesses make money through the sale of goods or by providing services. The earnings generated by a business come from pricing mechanisms and channels. In this day and age, a business is able to profit not only through providing and quantifying tangible services and goods, but also through online and digital services. Especially in the US, there has been an increase in businesses that make money only due to a virtual environment. Both active and passive income, as well as location-independent income can be acquired thanks to the internet. Because of this, there are many kinds of businesses cropping up that rely on online revenue streams to earn money.
Recurring Revenue Streams
Recurring revenue streams are one of the most popular online revenue streams today. These are revenues that are generated from the after-sale services of businesses. As everything can be digitally streamed online now, such as movies and music, companies like Netflix, Spotify, Amazon Prime and Apple Music charge subscription fees that ensure recurring online revenue from customers.
A recurring revenue stream can also be seen in online advertisements. Blogging has become a trend by which many content creators today earn their livelihood. This is possible through internet advertising, the most popular one being Google AdSense. AdSense generates a passive income for those who have uploaded content and have sufficient engagement from an audience that is also exposed to these advertisements. This type of revenue stream also works for the creators who make videos, such as on YouTube. The advertisements generate an income for as long as the videos are played and spectators engage with them and click on them, even long after the videos have been uploaded.
The entertainment industry covers not only television programs, films and music, but also gaming. Research has shown that the gaming industry is such a big deal that games played on PCs through consoles such as X-box generates an estimated $67.5 billion in 2018. This statistic is in fact significantly higher than the revenue generated from box offices of films in the same year. Although there are several technical issues that need to be addressed when it comes to online gaming, such as lags, it still stands as one of the biggest revenue streams in the digital age.
Online gaming is not limited to games that are playable on personal consoles. There are several websites dedicated to gaming that require just a PC or a smartphone. The online gambling industry is one of the biggest money making businesses. The most popular avenues are related to wagering, strongly lead by platforms which rely on sports odds to generate revenue. Games that simulate casinos and poker can also be played on downloadable phone applications.
Revenue Streams through a Service
In the US, it is possible to make money by selling services online through companies like Fiverr, PostMates, and Craigslist. These are the biggest businesses that generate their income by keeping it open to the public, who can offer services in exchange for money. This generates an active income for the people who get jobs because of these sites, and an income for the businesses themselves. Companies like Craigslist depend on banner advertising and charging a certain amount for posting of a service for some classified categories. Service-based companies are easily one of the largest online revenue streams in the country because of the ease of accessibility and the fact that it is open to the masses.
Podcasting is an online revenue stream which is fairly recent but has been gaining steady recognition in the digital age. Although it is not the easiest method of making money online, personal and big businesses have been known to profit through the monetisation of their podcasts and connecting with relevant sponsors. As long as the creators of the podcasts have found a niche and stuck to it, listeners have been ready to tune in. Apple Podcasts and Spotify are easily available for free for audiences. Once again, ease of accessibility has made podcasting a possible and popular online revenue stream.
Today, podcasting is considered to be a billion-dollar industry as advertising revenues has started to catch up with the growth of the medium. It has become an attractive platform for digital marketing as the quality of content has gone up, with over 500,000 shows available on various podcasting platforms.
While it is true that the internet is a complex place to make a business boom, it is not impossible with the emerging online revenue streams. There are definitely legitimate ways of making money online, for businesses of all kinds. The tools available on the internet has made it convenient for companies, be it personal or otherwise, to generate money through online revenue streams, capture the digital market, and gain popularity.