The Difference
A business model describes how a business generates value. A revenue model is a small part of a business model that describes how customers are charged.Example
Manufacturing is a business model. Manufacturing firms take components, parts and materials and create a product of greater value. Markup is a revenue model whereby firms charge a price that's higher than their costs. Most manufacturing firms have a markup revenue model.| Business Model vs Revenue Model | ||
Business Model | Revenue Model | |
Definition | A method for capturing value. | A method for charging for value. |
