Revenue Generation Model Mission/Profit Balance How it Works Examples
Direct sales to beneficiaries (e.g., charge for product, fee for service, interest payment) In alignment Charge beneficiaries for products or services. Arabella Advisors (fee for services) d.light (fee for products) Grameen Bank (interest payment)
Pay-as-you-go In alignment Make large expenses affordable by allowing users to pay in increments. Off Grid Electric
Pay what you want In alignment Patrons of the business decide for themselves what the service is worth to them. Everyone At the Table (EAT)
Cross-subsidization In tension Charge different rates according to the ability of different customer segments to pay. Can pressure company to focus resources on the needs of the highest paying customer. Dial 1298
Alumni pay In alignment Previous users pay for product or service on behalf of beneficiary SoFi
Franchise fees In alignment Charge fee for access to business assets, such as brand and process guides, to enable other social enterprises to replicate model. Caring Christmas Trees
Advertising In tension Charge advertisers for access to consumers or audience. GoodSearch
Subcontracting impact mandate from government In alignment Service offerings meet needs of multilateral, bilateral, federal, state, and/or local government funding sources. Day One Response
Pay for success In alignment Contract with government to receive payment conditioned on demonstrated impact. Partners in Wellness by Telecare
Ownership Neutral Share in the upside or downside of property ownership. Accelerator programs take equity from program participants. Subsidiary companies generate dividends and return profits. Landed (real estate ownership) Impact Engine (accelerator) SolarCity (subsidiary model)
Transaction fees In alignment Fee charged, fixed and/or as a percent of the transaction enabled by the service or platform, such as in a two-sided marketplace or sharing economy service. Etsy
Subscriptions, Software as a service (Saas) In alignment Fee for access to centrally hosted software or source of content on a subscription basis. SoPact (Saas) GOOD Magazine (subscription)
Licensing technology (B to B) In alignment Provide a technology or service key to enable the impact of program operators delivering products or services to the underserved. Angaza
Freemium In tension Offer free services to beneficiaries and a premium service to paying customers. Front Row
Impact Models Mission/Profit Balance How it Works Examples
Collaborative Neutral Provides beneficiaries with services to facilitate access to markets. Credit Unions
Employee owned Neutral Allow employees or customers to have equity in company. REI Utility Cooperatives
Direct employment In tension Train and hire beneficiaries that are traditionally underemployed. Evergreen Lodge
Ethical sourcing In tension Minimize the negative impacts on society and the environment along company’s supply chain. Alter Eco
100% profit donation Neutral Donate 100% of profits to charity. Newman's Own
OpenSource In tension IP and research findings available for all to use freely. OneDegree
Pro Bono In tension Donate expertise and services. Traditionally Law Firms, although more recently other service providers as well.
Buy One Give One In tension Charge customers a rate that allows product donation to beneficiary. TOMS
Sponsorship Neutral Donate percentage of sales to partner in charge of delivering impact. Warby Parker, FEED Projects
Two-sided marketplace In alignment Provide platform and services that connect beneficiaries to new market opportunities. Etsy
Sharing economy platform In alignment Provide beneficiaries use of or access to capital-intensive products. Zipcar