The logic that a business must rely exclusively on the sale of products or services is abandoned in the Hidden Revenue business pattern. Rather than that, the primary source of revenue comes from a third party that subsidizes the attractive free or low-cost offerings made to customers. This model is frequently used to incorporate advertisements into the offering, thereby attracting customers to the advertisers who fund it. The primary benefit of utilizing the Hidden Revenue pattern is that it provides access to a secondary source of revenue that can supplement or even completely replace revenue generated through the conventional sale of products. Financing via advertising may also have a beneficial effect on the initial value proposition. Generally, many customers will watch a few advertisements if it means they will receive a better deal on your goods or services.

 When and how to apply Hidden Revenue:

Throughout the early years of the new economy, this pattern's potential was routinely overvalued: countless companies were highly valued but failed to generate any real revenue. Today, it is difficult to quantify hidden revenue. Consider Facebook's acquisition of the WhatsApp messaging service for an astounding US $16 billion. Simultaneously, customers have developed a heightened aversion to Hidden Revenue. In Germany, where consumers are known to be particularly concerned about the misappropriation of sensitive data, every third WhatsApp user considered leaving the service after learning about the deal with Facebook. Simultaneously, Hidden Revenue maintains a strong presence in the advertising and customer data trading industries. Well-known companies that use this pattern are Google and YouTube.