Combining Revenue Models to Maximize Profitability | 7 Ways to Make Money

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8. Combining Revenue Models to Maximize Profitability

Why Combine Revenue Models?

Using multiple revenue streams allows businesses to:
✅ Diversify income sources – Reduces reliance on a single revenue stream.
✅ Increase customer value – Offers additional ways for customers to engage and spend.
✅ Adapt to changing markets – Allows businesses to pivot more easily when market conditions shift.
✅ Maximize monetization of existing assets – Extracts more value from the same customer base or content.

A strong business doesn’t just make money in one way. The best models layer revenue streams to increase stability and long-term profitability.

Common Revenue Model Combinations

1. Asset Sale + Subscription (Tesla, Peloton, Apple)

How it works: Sell a physical product and offer a subscription for added services.
Example: Peloton sells fitness bikes (asset sale) and charges a monthly fee for workout classes (subscription).

2. Usage Fee + Asset Sale (Tesla, AWS, Rent the Runway)

How it works: Sell a product but also charge per-use fees for additional services.
Example: Tesla sells vehicles (asset sale) but charges per use at Supercharger stations (usage fee).

3. Subscription + Advertising (Spotify, Hulu, YouTube)

How it works: Offer a free, ad-supported version while providing a premium, ad-free experience via a subscription.
Example: Spotify Free runs ads (advertising), while Spotify Premium charges a monthly fee to remove them (subscription).

4. Tiered Licensing + Advertising (Netflix, Disney, Dolby)

How it works: License content, technology, or brands while monetizing with ads.
Example: Disney licenses Marvel characters for merchandise (licensing) while also running Disney+ ads (advertising).

5. Brokerage Fee + Subscription (LinkedIn, Upwork, Zillow Premier Agent)

How it works: Charge a brokerage fee per transaction, but also offer premium membership features for recurring revenue.
Example: Upwork takes a percentage from freelancers' earnings (brokerage fee) while also charging recruiters for premium hiring tools (subscription).

6. Lend/Rent/Lease + Advertising (WeWork, Airbnb, Turo)

How it works: Rent or lease an asset while generating ad revenue from partners.
Example: WeWork leases office spaces (lend/rent/lease) and monetizes ads in their coworking spaces (advertising).

7. Usage Fee + Tiered Licensing (Microsoft Azure, Dolby, Shutterstock)

How it works: Charge per use of a product while licensing proprietary technology or content.
Example: Shutterstock charges per download (usage fee) while licensing image rights to businesses (tiered licensing).

How to Choose the Right Mix for Your Business

When combining revenue models, ask:

Does it enhance customer experience? – Will multiple revenue streams make things better or create friction?
Do the models complement each other? – Do they strengthen one another or compete for the same customer dollars?
What is the CLV impact? – Will combining models increase how much customers spend over time?

Spotify uses a hybrid model, earning revenue from free users through ads (advertising) while monetizing premium subscribers with a monthly fee (subscription). By allowing users to start with a free ad-supported experience, they reduce friction while increasing conversion to paid subscribers over time.

Case Study: How CofounderOS Combines Revenue Models to Scale Impact

The Challenge:

Entrepreneur support organizations (ESOs), incubators, and accelerators need a way to track, assess, and support founders while generating data-driven insights to prove economic impact. Founders need structured tools to build their businesses and access funding. To serve both audiences and ensure sustainability, CofounderOS strategically blends multiple revenue models.

The Solution: A Multi-Model Revenue Approach

1. Subscription Model

CofounderOS offers monthly software subscriptions to make its tools accessible to smaller organizations or those not yet ready for an enterprise contract. This recurring revenue stream allows a broad range of users to access the core platform with low commitment.

2. Usage Fee Model

CofounderOS generates transactional revenue through:

One-time fees when founders obtain certifications through the platform.
Premium support and software training purchased as needed by entrepreneur support organizations.

This allows revenue to scale with usage and programmatic intensity.

3. Tiered Licensing Model

CofounderOS uses tiered licensing to provide value across different organizational sizes:

Enterprise software licenses for larger ESOs and statewide initiatives.
Licensing of economic impact data, enabling organizations to meet reporting and compliance requirements with funders and policymakers.

This model ensures long-term contracts and allows higher-tier customers to gain deeper system functionality and insight.

4. Brokerage Fee Model

CofounderOS earns brokerage-style revenue by:

Sharing revenue with entrepreneur support organizations that create and distribute educational content through the platform.
Planning for future platform fees via APIs that enable third-party developers to integrate tools, offering services to founders within the system.

These channels allow CofounderOS to scale its ecosystem and increase value for all participants without holding inventory or delivering all services internally.

The Results:

Diversified Revenue: CofounderOS reduces risk and increases sustainability by aligning revenue with usage, impact, and ecosystem growth.
Increased CLV: Tiered offerings and content partnerships increase how long customers stay and how much they spend.
Mission Alignment: By tying revenue to real value delivered—to both founders and support organizations—CofounderOS builds loyalty and credibility while scaling.

Module Author: Eric Parker

Article Details

Many of the most successful businesses don’t rely on just one revenue model—they strategically combine multiple revenue streams to maximize profitability, reduce risk, and increase customer lifetime value (CLV).

By the end of this section, you’ll understand:

Why businesses mix revenue models.
Examples of companies successfully using hybrid approaches.
How to identify complementary models for your business.

Category	7 Ways to Make Money
Curriculum	all
Created	2025-03-13 19:56:48
Last Updated	2025-03-13 19:56:48
Published:	Make Startups Institute

7 Ways to Make Money

Asset Sales
Usage Fee
Subscriptions
Licensing
Lend/Rent/Lease
Brokerage Fee
Advertising
Combining Revenue Models to Maximize Profitability

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