In business it is all about making money.
Do you still work on an hourly fee or did you choose a different way of earning money? What revenue model do you use? Which fees and prices belong to that model?
Without a good revenue model you cannot become profitable. Are your customers prepared to pay for your added value? How do you distinguish yourself from your competition?
My story
When I started my business I didn’t think of different revenue streams. I just started working and charged an hourly fee. When I looked at my own business model I knew that if I wanted to grow I had to make more hours. That’s what I did, but then I got really tired and wanted to spend more time with my family. I knew I had to transform my business and my way of thinking. I looked around: how did other entrepreneurs earn their money? What revenue models did they use?
So, to change my business and my mindset I had to look at my business model and my revenue streams. I came to the conclusion that if I wanted to grow my business I had to choose different revenue models.
I made new products and services and I tried out different revenue models, not based on my hours:
If I couldn’t help a client I recommended somebody else and charged a fixed or hourly fee for this.
I gave training and workshops charging a fixed fee.
I created a coaching program based on a fixed fee per month.
I even tried “no cure, no pain”.
The goal was to find out what works for me and my clients. Some revenue models worked well for me and my clients, and some didn’t. This helped me to be creative in the ways I earn money.
Working smarter also entails choosing another way of earning money than charging an hourly rate.
So, it is very important to try-out this yourself, to find out what is working for you and what your clients are willing to pay.
There are many alternative ways to earn your money. This is how you can differentiate yourself from others. Under the condition that you deliver an added value that your client is prepared to pay for.
Great alternative revenue streams
What other revenue streams can you create? What other revenue models can you use for your business?
Here are ten great examples.
1. Crowdfunding
For larger financing of ideas. Have a look at www.kickstarter.com or www.leapfunder.nl
2. Subscription
For example, a fixed price per month for a specific service.
3. Pay per use
For example, a set of a specified number of vouchers, bought in advance.
4. No cure, no pay
Client only pays if the pre-agreed result is obtained.
5. Robin Hood
Wealthy clients pay higher prices than the less wealthy.
6. Digitalising
From physical to digital. Transform existing products or services into a digitalised version. This can lead to a new offer and new clients.
7. Cross-selling
You offer additional products on top of your basic proposal. In this way, you make use of existing client relations to sell more.
8. Symbiotic profit sharing
You work with other companies and share the income. This is a way of broadening your clientele through strategic partnerships.
9. Additional pay for extras
You offer a cheap primary product. You offer optional additions to raise the total price.
10. Your success is my success
ou support other parties in selling their products. You receive income from successful sales and access a diverse clientele.
Align your revenue streams in coherence with the products and services you designed for your ideal client. Choose a revenue stream, try it out and see how it works for your business.
What’s your story?
How did one or more of the alternative revenue streams work out for your business? Have you tried it? Share it in the comments with me.
Are you ready for real change?
You can create your own success by focussing on the right things. But sometimes we need help, a friendly push in order to take the next step. That friendly push is what my action plan provides: the BIZZ Road Map, based on practical Buddhist principles. The action plan that I use myself and which made me aware that I can work differently: smarter. You can find the BIZZ Road Map in my free ebook ‘Rethink your business’. Download it here:
