Not All Revenue Is Good Revenue means what?

• A. Some customers increase costs more than profits.
• B. All revenue should be pursued equally.
• C. Revenue is always net positive.
• D. Higher revenue always implies higher margins.

Answer: (A)

Not all revenue is equally valuable—the idea is that profit matters, not just sales volume. Some customers or deals bring in revenue but also incur high costs to serve, support, or customize, so the profit they generate can be zero or negative. That’s why the statement that some revenue increases costs more than profits captures the meaningful distinction: revenue should be evaluated by its contribution to profit, not by the top-line number alone.

If you only chase more revenue, you can end up with customers who require heavy resources, frequent returns, or steep discounts, which erode margins. Likewise, revenue isn’t automatically net positive once costs are considered, and higher revenue doesn’t guarantee higher margins because costs can scale with volume or pricing changes. Focus on profitability per customer or deal, not just revenue.