Level 3 - Commercial terms you need to know - Revenue-L3B2

Video Transcription

Video Summary

Revenue is the money a company earns from selling goods or services, and it is the foundation of all business activity. The transcript explains the difference between gross revenue, which is total sales, and net revenue, which is sales minus the costs needed to complete those sales. Using an example company, it shows how sales costs reduce revenue. For salespeople, understanding this difference is important when choosing target customers and when measuring performance, since some companies base targets and bonuses on net revenue rather than gross revenue.

Keywords

revenue

gross revenue

net revenue

sales costs

sales performance