Your revenue streams and how you will earn money 

Your revenue streams and how you will earn money 

Lesson Details:
March 03, 2020

Video Transcription: So let's talk about where the revenue in your business comes from is the big and exciting or maybe scary and daunting topic depending on where you are in your business right you've got a good revenue stream you're happy about it if not you can you got questions and you know I really solve this because this is one of the most important things right so of course for different businesses, it's a very different kind of thing you'd write because if you let's say you have a restaurant well your revenue streams are known and they're simple and you don't have to say a lot, for example, you sell food in your restaurant right you might also sell alcohol you maybe do catering maybe you have an outside food cart or truck but typically this is it there are no other ways you make money right but on the other hand if you have a technology business or an innovative startup or anything like that there is much more discussion that you know you should have in your business plan.

When you talk about revenue because it's often not that clear again if you saw something on Amazon it's clear because you're say duh you're selling something on Amazon your revenues coming from those sales but if you have some kind of a tech startup and it's not certain are you making money with ads or is it like is it affiliate or you selling your own product or services or do you upsell other higher-end services it's not clear or you really have to spell it out because people want to understand how your bid how you envision your business working out and how you really envision making money or already making money and here's the big question should you have one revenue stream or many okay so let's talk about some differences people will tell you you should have as many revenue streams as possible why well of course you'll take more money if you have another revenue stream you can take more money sure good point they'll also give you the reason all they'll say well you also want to diversify your revenue stream streams like what happens if some you know what if something goes wrong with one of the revenue streams you're still set you're still okay great point also but there's a counterpoint to all these good points and that is that in reality for most businesses but typically starts to happen is once a business started to find growth it's usually around one great revenue stream right so you might have like 10 revenue streams in my business I have probably 10 revenue streams I make money but perhaps I have money would I make money on youtube.

I make money with you know I said apps I also make money with ads I also make affiliate products I have books have online courses like I have like a lot I do coaching so I have a lot of revenue streams from from my own business right but at the same time there is one revenue stream I won't tell you which one but there is one that makes like 10 times more than most of the rest of them okay and like literally 10 times more month ok and what happens is which one do you think I'm going to focus on growing right of course it's gonna be that big one because if it has it's already that big I want to grow it into more and more potential this is the winner so I kind of focus 80% of my effort on growing that great winner and making it even more of a winner and then usually focusing like about 20% of the rest of my effort on all the other revenue streams and trying to see if any of them would start to have extra signs of growth which would give me a sign hey I should invest more effort and time into that ok but usually even though most businesses end up like having a lot of small or mediocre revenue streams there is one revenue stream that you should focus on making your winner your clear winner and shape a lot of the elements around your business around that like a lot of your marketing should funnel into people into that focus on that that focus will get you extra growth to that extra good revenue stream that's what I reckon not just in your business plan but in your business right because ultimately you don't want a business plan ultimately you hope you want to have a successful business right that's why you're writing the business plan that's what you want to think about these things.

So I want to quickly also tell you a few points about common revenue streams most people when they start a business the first thing they ask about is ads advertisements these things almost never make good money except in some cases some exceptions where either you have a very lucrative niche or you have a lot of traffic but then again if you have a lot of traffic you should be doing other things that monetize your traffic better for example selling products or reselling products which makes you an affiliate when you sell products you just make more money right I mean you know what serving an ad might you know a good revenue is like ten dollars for a thousand page web page impressions right but you know what if you sell a hundred dollar product then all of a sudden you just have to sell one to make ten times more or if you sell a couple you make hundreds of percent more right so you can make a lot more money selling product and if you don't have product you main you can resell products made by others for a commission which is called being an affiliate and of course you want to amplify your revenue streams and the best way to do that is to get people to become long-term customers not just to buy from you one time but to buy from you many times right so for example you know there's a very popular like razor blade example right you can buy you know you need to buy razor blades if you're if you're man if you shave you need to buy razor blades all the time right it makes you a lifetime customer almost right so of course you spew end up spending a lot like a lot more money over your lifespan than if you just bought it once so what you want to do is make sure I figure out a way for your business to get people to buy regularly or come back regularly and for that reason things like subscription models or email marketing because you can get in touch with people again and again really tend to be people's favorites those are like some of the great things to focus on because that just makes you a lot more money per customer that you already have and it's easier to sell to existing customers tend to sell to new ones because the existing ones already trust you if you gave them a good product or service so that's kind of what I wanted to say about revenue streams for your business I gave you some practical advice and I give you some advice of what's right in your business plan so you should be set for that part of your business plan.

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