Revenue streams refer to the various sources from which a business earns money. These can include sales of products, subscription fees, licensing, and advertising revenue. Understanding and diversifying revenue streams is crucial for a business's sustainability and growth, as it helps mitigate risks associated with market fluctuations.
Different businesses may rely on different revenue streams based on their industry and target audience. For instance, a software company might generate revenue through subscriptions and licensing, while a retail store primarily relies on product sales. Identifying and optimizing these streams can lead to increased profitability and long-term success.