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Measure Different Revenue Streams

Revenue Planning Home | Measure Different Revenue Streams | Evaluate Revenue Assumptions | Accurately Manage Revenue Budgets | Continuously Forecast Revenue | Consistently Analyze and Report Revenue

How do revenue stream margins compare?

Depending on industry focus and the size and location of the organization, the business models of companies generally are comprised of multiple revenue streams. There are organizations that sell products, others that sell services and some that focus on a variety of other revenue sources such as maintenance, advertising, licenses and/or subscriptions.

Regardless of the types of revenue streams involved in the organization, it ultimately becomes a balance between risk and reward-or effort and income-that any business has to maintain between its different revenue streams. While there might be one stream that brings in occasional large sums, there should also be other streams that deliver regular smaller sums. The key to successful revenue stream management is to have visibility into the profitability of different revenue streams and to analyze, compare and contrast against each other to guarantee there are no missed opportunities and revenue is always at its most optimal point.

Why is it crucial to measure revenue streams?

• Allows in-depth analysis and measurement of new and growing revenue streams
• Provides more targeted and more effective decision making
• Brings visibility and accountability into revenue recognition
• Allows for easy changes as the business adjusts
• Improves the organizations cash position
• Maximizes revenue stream management
• Identifies existing product usage habits and opportunities

Why PROPHIX for revenue stream management?

• Calculate and evaluate different revenue streams - products, services, other
• Create timely variance and comparison reports
• Measure total and various factors effecting revenue streams
• Plan for new revenue streams without jeopardizing data integrity
• Make adjustments to existing revenue streams
• Measure the effect of revenue stream changes on cash flow
• Directly link to external sales and marketing systems (CRM, billing, inventory)

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