Service-Based Revenue
Service-based revenue is a business model where income is generated primarily from providing services rather than selling physical products. It involves delivering expertise, labor, or support to clients, often through consulting, maintenance, or subscription-based offerings. This model is common in industries like IT, finance, and professional services, focusing on recurring or project-based fees.
Developers should understand this concept when working in or building businesses that rely on software-as-a-service (SaaS), consulting, or managed services, as it influences pricing, customer relationships, and revenue stability. It's particularly relevant for roles in product management, entrepreneurship, or enterprise software, where recurring revenue models like subscriptions are key to long-term growth and valuation.