Do you want to learn how to diversify your revenue streams so you can take your business to the next level? If so, you’ve made it to the right place!
When you consider the ups and downs of the global economy, it’s clear that finding new ways to improve profits is more important than ever before. It’s also one of the best ways to improve long-term stability and growth.
Spreading your income across multiple sources not only cushions you against market fluctuations but also opens up exciting new avenues for yourself and your team.
Today, we’ll explore actionable strategies you can use to build multiple income streams and build a more resilient, profitable business.
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Create New Versions of Your Existing Product
One of the easiest ways to diversify your revenue is to create variations of your existing products. This strategy is effective because you don’t have to reinvent the wheel for it to work.
Simply look at the products you’re already selling and think about ways you can cater to different types of customers.
So, a software company with only one version of their product might consider creating a “lite” and “elite” version. This means they can pull in customers who might be looking for affordable options and fewer features.
Here’s an example of a brand that broke one product up into different tools so people can get exactly what they want:
On the other hand, they’re also appealing to big spenders who want to get the very best version of their software.
The best way to figure out what people want is to listen to what they have to say. You can do this by asking for feedback, social listening, and researching what matters most to your audience.
Explore New Markets
Exploring new markets is a very powerful way to start diversifying your revenue streams. When you expand beyond your reach, you go beyond your customer base and find people who otherwise might not consider buying from your business.
One of the best examples of this strategy is Amazon. They started as an online bookstore, but because they were willing to expand their market, they’ve become the biggest online seller in the world. You can find electronics, clothes, music, and so much more. They even have their own food and healthcare line!
While there’s no doubt Amazon is a large-scale example, the underlying principles apply to businesses of all sizes. If you’re willing to look beyond what you’re already doing, you can find countless opportunities to diversify your revenue.
If you want to give this strategy a try, be sure to look at your options. You don’t want to invest unless you know for sure if there’s a market gap that your team can fill.
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Partner with Other Businesses
Teaming up with other businesses is another excellent way to diversify your revenue stream. When two brands work together, they can reach each others’ audiences, which means both teams end up benefiting.
In most cases, someone who visits one brand might not know the other company exists, and vice versa. Partnerships help spread awareness and get people to check out products that could add value to their lives.
There are a few different ways your teams could partner up. The most common strategy is cross-promoting on each others’ sites. So, you might include a relevant blog post about one of their products, and their content team can do the same for your business.
Not only is this a great way to boost profits and awareness, but the new people visiting your site will come with built-in trust. Think about it this way: if a brand you’ve used for years suggested a product, you’d probably trust them more than you would if you had just stumbled across them one day.
If you want to find brands to partner with, consider looking for companies in your industry that are not direct competitors.
For example, the company behind a WordPress theme plugin might partner with a hosting company. Here’s what that could look like:
Add a Membership Option
Memberships have become the norm for many different sites. When you consider that it’s an excellent source of recurring revenue, it’s no wonder this is the case.
I’ve found that including the option to join a member’s only part of your site is one of the best ways to gain a new, predictable, and stable income stream.
The thing is, you need to provide extra value to people who decide to join. If they don’t have anything to gain, they won’t sign up.
The good news is you have a ton of benefits to choose from when setting up a membership program. You could offer exclusive content, special discounts, beta test access, and even a loyalty program. These seemingly simple perks will drive people who like your site and products to join.
If you’re not sure where to start, ask your audience! Since they are the ones who will be investing in this, they’ll know what they want. It just makes sense to offer them something that is worth their time and hard-earned money. Also, consider automating membership management with SaaS platforms to manage subscriptions and record revenue as per the rules and guidelines.
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Sell in New Ways
One of the biggest mistakes businesses make is they limit themselves to a single sales channel. This means they’re missing out on opportunities to connect with your audience across many different platforms.
Social media, for example, has become one of the best places to sell. Research shows that nearly 60% of people turn to social sites when they’re thinking about buying a type of product but don’t know where to start.
Here are a few more statistics about social selling that really highlight the benefits:
Similarly, if you’re selling physical products, you could consider getting your product into retail stores or even selling wholesale. These are all viable options that can help you sell outside of your website.
Your best bet when experimenting with this strategy is to talk to people who have already done it and found success. Similarly, you could reach out to people who help with distribution to find out if your product would be a good fit. If so, you may have just found a new way to diversify your revenue!
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Invest in Other Businesses
If your business is doing particularly well, you might want to consider partnering with other brands. Startups and smaller companies are a great place to start because, more often than not, they could benefit from a boost in sales.
In exchange for your support, you could ask for either a percentage of their business or a specific commission on sales. Both of these benefits will result in a new revenue stream.
The thing with investing is it comes with risks. A business might not be successful, which means you could actually lose money. With that in mind, it’s important to invest carefully. Choose brands that you believe in and work with them to find success.
In exchange for your research, you can drastically improve the odds that your investment pays out.
Final Thoughts
By diversifying your revenue streams, you open yourself up to tons of new possibilities. If you’re wondering where to get started, review these strategies and figure out what would work best for your business.
Start by choosing one and get the ball rolling. Before you know it, you may find business and revenue growing faster than you ever could have anticipated.
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The post How to Diversify Revenue Streams for Your Business appeared first on StartupNation.
