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

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Revenue is the money a company earns from selling goods or services, and it is the foundation of all business activity. Gross revenue is total sales before costs, while net revenue is what remains after sales-related expenses such as manufacturing, packaging, logistics, and returns are deducted. Salespeople should understand the difference because a company with high gross revenue may still have low net revenue and limited ability to buy. Revenue figures also affect sales targets and bonuses, so focusing on the right measure is important for planning, prospecting, and meeting performance goals.

Keywords

revenue

gross revenue

net revenue

sales targets

business performance