Revenue streams for my business: how do I create them?

For some time now, I have made sure that I am not dependent on one income stream. If for any reason I now have temporarily less income, I can make up for it with my other income streams. As a result, I experience more financial peace and freedom within my business and life. I often get questions about revenue streams, revenue models and business models. That's why I like to explain it for you. 

What are revenue streams?

Revenue streams (revenu streams) are the ways in which money comes to you. A revenue stream is one of the fundamental building blocks of your business. You simply need money to live. The way you create and deliver value to your customer that he or she is willing to pay for (your revenue model) is crucial. But there are other ways to generate revenue streams, such as by investing in assets. By doing so, you make your money work for you. Think here of a investment in property, gold or crypto example. There are a number of ways to make money "fast" in different ways.

What is a revenue model?

The revenue model is about the strategy you choose for your business. It is an important foundation of your business plan. It is the way you generate revenue with your business. 

These are the most well-known revenue models:

• Commodity sales or transaction model 
• Hourly billing
• Freemium: your basic product is free, does your customer want more? Then he/she can upgrade
• Service model: you get your revenue from service, maintenance or repair
• Subscription model: for example, a weekly meal box, magazine or box of razor blades
• Advertising model: on your website you offer advertising space for a fee
• Online platform: for example, Marketplace or Vinted
• User designed model: your customer composes his or her own product on your website, such as a photo album
• Consumption model: the more the customer uses your service, the more he or she pays. For example, for cloud services
• Dropshipping: you sell products whose manufacturer delivers directly to your customers
• Rental model
• License model: you lease the ownership rights to that which you license. Think of your logo on mugs or T-shirts
• Affiliate marketing: you promote another company's products or services on your social media or website, and when your customers purchase something from the other company, you receive an amount of money for it

Production model: you make custom products

This is how you discover the revenue model for your services or products

Ask yourself the question: what is my revenue model? Is the answer clear and fits your conditions for living and working? And is your business model sustainable for the future? 

You build in extra security when you ensure multiple streams of income and multiple revenue models. That way you won't be faced with unexpected surprises. This allows you, like me, to live and do business with unlimited freedom, experiencing financial peace, freedom and satisfaction. 

With the help of the Business Model Canvas, you will arrive at and name all aspects of your revenue model. These are the 9 key building blocks of the Business Model Canvas:

1. Who is your target audience, who is your top customer and why?
2. What is your value proposition, what is the added value of your services or products to your top customers?
3. How do you maintain the relationship with your top client?
4. What sales channels do you use to contact your top clients and potential customers?
5. How big is your market and how do you realize your sales?
6. What assets and resources do you need to achieve this turnover?
7. What activities are most important to be successful?
8. What partners do you need for your business to succeed?
9. What are the costs for the first 8 building blocks? 

What is a pricing strategy?

The other day I was asked, "what is the difference between a pricing strategy and an earnings model?" I already explained the revenue model, so now more about a pricing strategy. 

A pricing strategy shows how you price your revenue model. What should your product or service cost? There are different pricing strategies, such as:

• Prices based on your competition's prices
• Premium prices
• Package Prices
• Discount pricing: you underprice your competitors 
• Cost-plus strategy: you start from the purchase price and add a fixed percentage to it
• Stay-out pricing: you opt for the lowest possible price, giving new market entrants no chance
• Price lining: all your models or your entire range you offer at the same price
• Value-based pricing (my favorite)

When you have chosen a pricing strategy, it does not mean that your prices are fixed forever. Certainly not. I am an advocate of value-based pricing where you raise your prices because the value of your products or services has increased. By basing your prices on your value and raising them, you get more appreciation over time. This makes you opMarkably Profitable. Read more about how to raise your prices here. 

What business models are there?

A revenue model shows how you generate revenue as a company. With a business model, you look at how you create value as a company. Value creation is the seamless alignment of your offerings with your top customers' needs. 

The four main categories of business models: 

• Business-to-consumer (B2C)
• Business-to-business (B2B)
• Consumer-to-consumer (C2C)
• Consumer-to-business (C2B)

B2C involves trade between your business and a consumer, B2B involves trade between two businesses, C2C involves trade between a consumer and a consumer (through Marketplace, for example) and C2B involves trade between a consumer and a business (an influencer offering his or her services to a business). And then there are an awful lot of business models within those categories. Some examples: circular business models, curation, pay for experience and a customer-driven business model. 

Circular business model

A circular business model is all about organizing value retention by and between companies. In order to make smarter use of raw materials. For example, you don't sell stuff, you rent it out. Think of the share bikes on the street.

Curate

This business model is also called the curated subscription. Your customers pay a fixed amount per month for getting some surprise products in a box, for example.

Paying for an experience

This business model is not about the product itself, but the experience around it. Like a game cafe where the drinks and games are free, but you pay for the time you spend there.

Customer-driven business model

This business model focuses on your customer's need. Your customer places an ad with what and when something is needed, to which several companies can send their offers. Your customer can choose the best offer based on his/her own needs. 

I will introduce this business model in 2023 for my Premium clients, those top clients who have participated in my Unlimited Freedom Premium Program. My exclusive offer to offer them my most value based on their need.