Business Pitch Dictionary by pitch.dog
Business & revenue models · Working

Cross-subsidy

Also called: cross subsidisation

ELI5

One part of the business helps pay for another.

Used in conversation

“The cross-subsidy must be visible before pricing changes.”

Definition

A structure in which revenue or margin from one customer, product or activity supports another.

Here “Cross-subsidy” means: A structure in which revenue or margin from one customer, product or activity supports another.

Pitch context

You will see “Cross-subsidy” in strategy decks, market analyses, business plans and planning workshops when the discussion reaches business & revenue models.

Why it matters: It helps a reader interpret business & revenue models without confusing the measure, decision, role or evidence being discussed.

Sources & evidence · 5

Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.