It’s easy for a business to get complacent – mainly when operations are profitable and things are going relatively well. Unfortunately, complacency typically devolves into something you don’t want. And that’s why it’s always recommended that you consider additional revenue streams.
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The Need For New Revenue Streams
Having multiple streams of revenue is always a good thing. For businesses, it yields the following benefits:
- Diversification. When you have all of your eggs in the same basket, it only takes one problem, mistake, or uncontrollable circumstance to throw your business into decline. In fact, it only takes one competitor coming out with a far superior product – or even a similar product at a significantly cheaper price point – to erode your business. By diversifying and adding new streams of income, you become less susceptible to these issues.
- Ability to take risks. When you have multiple ways of earning revenue, you don’t have to play it safe all the time. You have the option of taking risks and trying new things. Even if they don’t pan out, your business is fine.
- Modernization. Adding new revenue streams forces you to modernize and stay up to date with the latest trends. You never know when a supplementary source of revenue suddenly could become your most profitable product or service.
This is just the tip of the iceberg. Depending on what line of business you’re in and the goals you have for your organization, adding one or two new revenue streams could completely transform your business from the inside-out.
5 Revenue Streams You Could Add
Here’s the thing: Companies get less than 30 percent of their revenue from advertising sources. So why is it then that so many businesses only focus on advertising? Furthermore, why do these businesses throw everything they have into a single product?
The answer is pretty simple: It’s easy. But easy isn’t always best. As mentioned above, adding revenue streams can significantly enhance your existing business. In light of this, let’s check out some possible options:
1. Complimentary Products
One of the easiest and most natural ways to add a revenue stream is to offer complementary products that go with your core products. The benefit here is that you can sell to your existing customers without having to go through much additional effort.
Let’s say, for example, that you’re in the business of selling SEO services to your clients. Content marketing services would be a natural addition. You could even bundle the two together. In terms of physical products, a company selling golf balls could add a line of golf tees or ball markers. Again, it’s a natural fit that can be sold to the existing customer.
2. Digital Products/Information
Online businesses often find it helpful to add digital and/or information products to their websites. This may look like selling ebooks, information guides, templates, graphic design work, or premium memberships.
3. Affiliate Marketing
While not a revenue stream in the traditional meaning of the term, affiliate marketing can increase your revenue without a whole lot of additional effort on your part. You can even use a company to build out your affiliate marketing platform for you. From there, all you have to do is find partners who are willing to push your products in exchange for a small commission.
4. Subscription Fees
Have you ever thought about creating a subscription service option for your products? Let’s say, for example, that you sell dog food through your website. In addition to offering customers the chance to purchase by the bag, you could set up a subscription service where you automatically send one bag every two weeks. This added convenience helps lock in a new type of customer (one who prizes convenience).
5. Licensing
Perhaps you have a product that you’ve designed for in-house use – such as a piece of manufacturing equipment or accounting software. It’s possible that you could license out the technology and sell it to other companies. As long as they aren’t direct competitors, there’s very little downside.
Give Your Business A Jolt
Sometimes a stale business needs a little spark to become energized. One of the best ways to get people excited about your business again is to introduce a new product, service, or monetization strategy. If nothing else, you’ll find that it primes the pump for further innovation and creativity.
If you are interested in even more technology-related articles and information from us here at Bit Rebels, then we have a lot to choose from.
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