Most entrepreneurs and small business owners agree that further monetizing their existing business strengthens the revenue stream of the organization. To secure a better chance at success, a business is wise to expand their ways of making money.
Creating additional revenue sources these days is a smart business strategy. Multiple revenue streams from a single organization can be implemented, allowing a company to increase profits and be more stable during challenging phases.
There are multiple ways a business can add revenue sources. Here are 5 ways that can be implemented with relative ease.
5 Ways To Create Additional Revenue Sources
1. Offering Training Courses and Consulting
For companies that sell products and services, which is the majority of businesses, offering training courses, coaching, and consulting is a smart way to add an additional revenue stream to an existing offering. Products and services that require some knowledge for using or operating can be bundled-up with training or consulting for additional fees. This is a common practice in many industries. A business can even automate this online and create passive income from charging their customers for the online courses and training. Some industries and companies offer in person training and consulting, but it is not always necessary.
2. Selling Products and Services Online
In today’s global and mobile age, most companies understand the value of a website. For organizations that can implement e-commerce websites, a whole new way of making money is made available. E-commerce enables a company to sell 24/7, every day of the year, and most importantly worldwide. There are many retailers who still have not talking advantage of also selling their products online. Services can be purchased online as well by customers and companies should take advantage of it. In certain industries, consumers expect to be able to do just that.
3. Creating New Products and Services
A simple way to create additional revenue sources is simply to create new products and services to an existing line of products and offering. Expanding with services and products can significantly increase a company’s revenue streams and profits when executed properly. This is a common method, but often not taken advantage off by organizations. A company must decide to reinvest into their business to expand their offering. For example, a skin care company may offer starting out 6 products, but decide to expand their product line to 12 items. Therefore, increasing average order by consumers and overall potential to profitability.
4. Implement Passive Income Models
One of the best methods to increase revenue streams is implementing passive income models. Passive income for example is advertising money received or receiving revenues for promoting different associated networks or vendors. Many organizations manage a company blog. These blogs can be monetized to generate revenue from lead collection, advertising, and marketing partners and customers. Passive income means that revenue is generated without directly working for it. Money is received from work already done for other reasons such as blogging. A company may blog for promote their brand and services, but can also sell advertising from related vendors.
5. Expand Current Customer Base
A company may increase revenue streams by expanding their existing customer base through multiple ways. Incentives can be given for referrals. A business can partner with other vendors and feed each other business. Any effort conducted to increase and expand a current customer base, increases further the revenue streams of the organization. Incentives to existing customers, referrals, partnerships, endorsements, and so on can all have a very positive effect on a company’s ability to add multiple revenue streams.
For entrepreneurs and companies that do not fully understand how to go about adding multiple revenue streams, consulting services are a great way to learn more about options and how to go about it. Consultants can quickly help a company with this, since they have done it many times before. Working with experts tends to be a very good idea. Experts such as a business consultant can help a company avoid costly mistakes and pitfalls. Regardless of method, a company and entrepreneurs should always look for opportunities to add multiple revenue streams to their business.
