Transaction Model
Also known as: Revenue Model, Pricing Model, Business Model
H-BMC Block 8 — how each use of the solution converts to revenue.
Full Definition
The Transaction Model defines the mechanism by which value delivered converts to revenue received. It specifies the pricing model (per-use, subscription, per-patient, license), the unit of transaction, the price point, and the payment flow. The Transaction Model must be realistic for the economic buyer — how they budget, how procurement works, and what approval thresholds apply. A compelling Value Promise with an impractical Transaction Model will not generate revenue.
Example
A capital equipment company prices its device at $500K with a 5-year service contract. An equivalent SaaS model at $3K per month lowers the procurement threshold from a capital budget requiring board approval to an operating budget a department head can approve — a fundamentally different sales motion.