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 |