Ancillary revenue

Ancillary revenue,

Definition of Ancillary revenue:

  1. Ancillary revenue is the revenue generated from goods or services that differ from or enhance the main services or product lines of a company. Ancillary income is defined as the revenue generated that's not from a company's core products and services.

  2. Revenue that is derived from goods or services other than a companys primary product offering. Examples include concessions at sporting events, pay-per-view movies offered by airlines, and carwash services sold by gas stations. Ancillary revenue may in some cases exceed primary revenues, leading to changes in business models.

  3. Examples of ancillary revenue could be an ice-cream company that gets into the business of selling ice-cream scoopers, or a printer company that starts selling printer ink. Ancillary revenue is important because it can help companies diversify a company's revenue stream.

How to use Ancillary revenue in a sentence?

  1. Ancillary revenue is important because it can help companies diversify the sources of total revenue.
  2. Ancillary revenue is the revenue generated from goods or services that differ from or enhance the main services or product lines of a company.
  3. Ancillary income is defined as the revenue generated that's not from a company's core products and services.

Meaning of Ancillary revenue & Ancillary revenue Definition