2.2 Revenue streams

Revenue streams are the sources of revenues that the business model is able to generate. The question at issue here is: ‘For what value are customers willing to pay?’ (Osterwalder et al., 2010, p.31). It is also important to clarify how revenues are collected or, in other words, how customers pay. Different types of business models have different ways of generating revenues. The different types of revenue models are advertising, subscription, transaction fee, sales and affiliate models. A business model is able to generate both one-time payment transaction revenues and recurring revenues by continuing to offer value proposition to customers, or from post-sale services.

In the case of a drone spraying business, there are several ways they can generate revenue:

• direct sale of drone systems
• subscription services for software and data analysis tools
• leasing programs for drones and equipment
• training services for farmers and agricultural workers
• consultancy fees for providing expert advice and customised solutions.

Revenue streams are also dependent on pricing mechanisms. Osterwalder et al. (2010, p.33) identify two main mechanisms: fixed price, based on static variables; and dynamic prices, based on market conditions.

The following table shows the fixed prices mechanism.

Dynamic price mechanisms are presented in the table below.