Product-Based Revenue
Product-based revenue is a business model where income is generated primarily from the sale of physical or digital products, rather than services or subscriptions. It involves creating, marketing, and selling tangible goods or software products to customers, often with a focus on scalability and repeat sales. This concept is central to industries like manufacturing, e-commerce, and software-as-a-product (SaaS) businesses.
Developers should understand product-based revenue when working in product-focused companies, as it influences software development priorities, feature roadmaps, and monetization strategies. It's crucial for roles involving product management, pricing models, or building scalable systems to support sales and distribution. This knowledge helps align technical decisions with business goals, such as optimizing for customer acquisition, retention, and revenue growth in product-driven environments.