Skip to main content

Product Revenue

What is Product Revenue?

Product revenue is the total amount of income an individual product generates. It is one indicator of product performance; however, it is not a metric of profitability by itself. Product net profitability is calculated by subtracting total product costs from total product revenue.

Understanding Product Revenue

Monitoring product revenue and sales helps you understand whether demand for a product is increasing or stagnating over time. This data helps you adjust goals accordingly during the product’s lifecycle. Keep in mind that lower demand may not imply a bad product, especially for a new product, but may be due to other factors such as low awareness or even poor product strategy.

Not all products generate revenue directly. However, they do have users they provide value for directly. For example, this could be an internal system that a delivery driver uses to help them in their job of delivering orders. This product does not generate sales, yet should help the driver in navigating their day-to-day work better while they provide delivery service to end customers. Another example might be a service that a non-profit provides for a community like a food bank or soup kitchen where food is offered to the hungry for free. They are providing value by providing a beneficial service for society.

While all products may not generate revenue directly, they need to produce valuable outcomes, and they always generate costs.


A product is a vehicle for delivering value, meaning valuable outcomes, to customers.Outcomes are experiences that help the customer to achieve, or at least make progress toward, a goal that they value.The word "product" encompasses a broad range of solutions that organizations can use to deliver va...
4.7 from 19 ratings


This pieces describes the stages of the product lifecycle and how a Product Owner should consider adjust their product strategy accordingly.
4.5 from 2 ratings


What did you think about this content?

Included In

Learning Series
Understanding a product’s revenue and cost is key to creating and executing on a product’s strategy as well as determining its value.