7 Ways to Make Money modules: from Make Startups Institute


Asset Sales

Asset sales are one of the most common ways businesses generate revenue—selling a product or service in exchange for a one-time payment, where ownership is transferred to the buyer. While simple, this model requires ongoing customer acquisition to maintain revenue.

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

  • What defines an asset sale.
  • The advantages and challenges of this model.
  • When an asset sale makes sense for your business.
  • How to maximize Customer Lifetime Value (CLV) in an asset sale.
Usage Fee

Usage fees are often associated with utilities, cloud computing, and on-demand services, but they can also apply across a wide range of industries—from professional services to healthcare, fitness, and education.

A usage-based pricing model charges customers based on how much they consume—whether that’s electricity, legal hours, fitness training, or mileage driven.

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

  • What defines a usage fee model.
  • The advantages and challenges of this model.
  • When a usage-based approach makes sense.
  • How to optimize pricing and customer experience for usage fees.
Subscriptions

The subscription model generates revenue by charging customers on a recurring basis—typically monthly or annually—in exchange for continued access to a product or service. This model is designed to create predictable, stable income while building long-term customer relationships.

Subscription models can be applied far beyond media and software—from healthcare to automotive, consumer goods, and professional services. Understanding how to leverage subscriptions can unlock new revenue potential for your business.

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

  • How the subscription model works.
  • The advantages and challenges of recurring revenue.
  • When a subscription model makes sense.
  • How to optimize pricing, retention, and growth in a subscription-based business.
Licensing

The Licensing Model generates revenue by allowing others to use intellectual property (IP) in exchange for fees or royalties. Instead of selling a product outright, businesses retain ownership and monetize their ideas, brands, technology, or creative assets by granting limited-use rights.

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

  • What defines a licensing model.
  • The advantages and challenges of licensing.
  • When licensing makes sense for a business.
  • How to optimize licensing terms, royalties, and long-term revenue.
Lend/Rent/Lease

The Lend/Rent/Lease model generates revenue by granting temporary access to an asset in exchange for payment. Instead of selling outright, businesses retain ownership and earn revenue from multiple customers over time.

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

  • The key differences between lending, renting, and leasing.
  • When this model makes sense for a business.
  • How to optimize pricing, utilization, and profitability.
Brokerage Fee

The Brokerage Fee Model generates revenue by acting as an intermediary between buyers and sellers, earning a fee for facilitating transactions. Instead of selling products or services directly, businesses in this model connect parties and take a commission or fee per transaction.

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

  • How brokerage fees work and why they are valuable.
  • The advantages and challenges of this revenue model.
  • When a brokerage model makes sense for a business.
  • How to optimize transaction fees and increase profitability.
Advertising

The Advertising Model generates revenue by offering exposure to an audience in exchange for payment. Instead of selling a product or service directly, businesses using this model monetize attention by selling ad placements across their platforms.

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

  • How advertising models work and why they are valuable.
  • The advantages and challenges of ad-based revenue.
  • When an advertising model makes sense for a business.
  • How to optimize ad placements and increase revenue.
Combining Revenue Models to Maximize Profitability

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.
7 Ways to Make Money

Every day, businesses are trying new ways to make money. Ultimately these ways can be defined through 7 revenue models. 7 Ways to Make Money reviews each revenue model, when it makes sense, ways to optimize it, and strategies to combine revenue models to maximize the profitability of your startup.


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Created 2025-03-13 19:56:48
Last Updated 2025-03-13 19:56:48
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