Ancillary revenue is the revenue generated from goods or services that differ from or enhance the main services or product lines of a company. Examples of ancillary revenue could be an ice-cream company that gets into the business of selling ice-cream scoops, or a printer company that starts selling printer ink. Essentially, it's any revenue brought in from the sale of items that aren't the business' main line of business. By introducing new products and services or using existing products to branch into new markets, companies create additional opportunities for growth.
Breaking Down Ancillary Revenue
Most companies have some form of ancillary revenue. These revenues can vary from car washes at gas stations to advertisements placed on jets. In some cases, what begins as ancillary revenue can become the main source of revenue. For example, this occurred when food and beverage sales at gas stations surpassed gasoline revenues. For a long time, snacks and beverages at gas stations were an afterthought. When the price of gasoline fell, items inside of the gas station such as snacks and beverages started to make up a more substantial part of a gas station's revenue.