How does DAO make money?

Could you elaborate on the financial mechanisms and profit-making strategies employed by Decentralized Autonomous Organizations (DAOs)? I'm curious to understand how these entities, devoid of traditional hierarchical structures and centralized management, generate income. Do DAOs rely primarily on crowdfunding or do they employ other innovative financing models? How do they ensure the allocation of profits in a fair and transparent manner? Furthermore, what are the challenges DAOs face in terms of profitability and sustainability? I'd appreciate your insights into this fascinating and rapidly evolving segment of the cryptocurrency and finance landscape.