A Revenue Model is a specific collection of business processes used to identify customers, market to those customers, and generate sales to those customers.
A revenue model is a structure for producing money. The value to be provided, how to price the value, and who will be paying for the value are all determined. It is an important part of a business model. It essentially outlines what goods or services will be developed in order to make money, as well as how they will be sold. New businesses are more likely to struggle as a result of costs they won't be able to cover if they don't have a clear and well-defined revenue model, or, in other words, a clear plan of how to produce revenues. A company can concentrate on a specific market and finance product development goals by having a clear revenue model.
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