What is a model of income?

The

income model is part of the total business model of the company. The income model deals with the question of how and where the company's earnings will increase. Almost every business must start making money in the relatively early phase of their lives if it is to survive, and a clear plan is needed where these earnings will begin. For permanent business, income must be sustainable, and this must be taken into account in the income model. Investors who want to put money into a new business will want to know where income will arise to ensure that they receive a reasonable return on their investment. In the retail company, the earnings model may relate to the acceptance of cash from customers passing through the door. For online business, the income model may include direct advertising revenue, affiliate marketing, online sales, or a premium subscription income.

In the years of boom dotcom many businesses on the Internet did not have a satisfactory modelJMs. Many such companies relied on the increase in their shares price and for any acquisition of the investor without having to prove that earnings were achieved. Most of these companies have not survived and this experience emphasizes the need for a model of income that includes sustainable income for the future.

The

income model includes the elaboration of reasonable and sustainable price policy. Any low prices or discount policies must have the development of a long -term relationship with customers rather than sales that look impressive in the short term. Discounts or prices must be part of a strategy that leads customers to buying other goods, such as the relatively low Pricking of Gorejs compared to the blades or a relatively cheap printer price compared to the more aggressive prices of the printer.

The

income model must eventually be connected with the aim of customer service and customer satisfaction. A business undertaking should focus on providing a differentiated service that provides customersadded value based on their needs. The product or service should solve the problem for customers and the price should ideally be based on this value rather than costs, which does not necessarily have any relation to the added value created.