Service Revenue is the income a business earns by delivering services rather than selling physical goods. It describes the financial return from time-based labor, specialized expertise, and ongoing client support.
Some specific avenues for this type of revenue include:
- Maintenance or repair fees, or charges for ongoing technical support
- Revenue from consulting, installation, or training services
- Earnings from service contracts or subscription-based offerings
While product revenue is transactional and often one-time, service revenue often grows through continued engagement. For instance, an IT company may generate consistent service revenue by providing monthly system monitoring, on-call troubleshooting, and user training sessions. This model strengthens client relationships and contributes to long-term financial stability by creating recurring, higher-margin income streams.
Streamline Your Tech Stack to Boost Profitability
Infographic
The Hidden Cost of Disjointed Tech Stacks: Why Unification Matters
Many enterprises struggle with inefficient tech stacks, using only 45% of their applications. This underuse drives up costs, drains IT resources, and eats into profit margins.
The solution lies in a unified strategy that brings all systems, tools, and services together into one sleek, integrated tech stack.
Learn how to streamline your businesses tech infrastructure, to optimize your margins.
The solution lies in a unified strategy that brings all systems, tools, and services together into one sleek, integrated tech stack.
Learn how to streamline your businesses tech infrastructure, to optimize your margins.