When you have more revenue streams in business, there are more ways for income to flow into your organization.
Having one revenue stream means putting all your eggs in one basket. If something happens to disrupt that stream, like market fluctuations, changing customer demands, or natural disasters that affect your supply chain, your business could suddenly find itself struggling.
That’s why finding new revenue streams is crucial for success for any company. Every extra revenue stream opens up more possibilities for profits. In this article, we’ll share 9 ways to increase revenue streams and drive business growth.
Offer pricing tiers
Overhauling your pricing model can be a good way to unlock revenue enhancement. If you currently charge a single flat rate for your services, consider switching to tiered subscription-based pricing models. As well as helping increase income, subscription pricing can convert casual users into loyal customers and brand ambassadors.
This could begin with a free or very low-cost introductory plan which attracts new customers to try out your services. Once they discover the benefits of your services, they’ll be enthusiastic to upgrade to higher-priced tiers. Just make sure that each tier delivers value for money, and is clearly differentiated from the other tiers.
For example, if you provide website building services, you might offer a basic free website builder with simple tools, and restrictions on branding and user numbers. The next tier would be paid, and include more customization options and enable customers to add their own branding. The third tier would be a premium plan with higher costs, advanced capabilities like analytics, and personal customer support.
Add more services to your offering
One approach is to expand your existing offering. Look for services and products that complement your core focus and integrate naturally with your current package. However, it’s important to make sure that your extra services deliver real value for your clients. Don’t just add an unrelated service or product for the sake of increasing your offering.
This could involve introducing a product alongside your service package, like branded software or a branded app. For example, if you provide lead generation services to SMB clients, you might add a robust CRM system that simplifies lead management and creates real-time notifications about new leads or changing lead scores.
Pro tip: inTandem is a solution that lets you centralize services in a single branded platform, adding marketing services like lead delivery and lead tracking alongside business management tools like online booking, payment processing, and cash flow monitoring.
Partner with other brands
Collaboration can be an excellent method to increase revenue streams. When you connect with other brands, you can make use of their reputation, audience, and skills to ramp up your own offering and increase your customer base.
There are many ways to manage brand partnerships, from channel partnerships that help expand your reach to product development SaaS partnerships that involve you creating new or better products and services together.
For example, telecommunications companies frequently partner with SaaS companies to sell complementary solutions like AI-powered customer support chatbots, and marketing agencies often work with tech companies to provide CRM solutions.
Try a new audience
As well as finding ways to expand your offering, you can also add revenue streams by adding to your audience. Think about methods to grow your reach to attract new audiences that you hadn’t previously considered, like moving from SMBs in the home services vertical to beauty and wellness SMBs.
There are many ways to approach this. You might simply revamp your marketing by segmenting different SMB owners with personalized messaging and targeted campaigns. Alternatively, you could need to adapt some of your products and services and change the language you use in your solutions, to make them more relevant for new audiences. Gather feedback from your proposed new customers to check that you fully understand their needs.
Reach out to past clients
Your lapsed customers are a potential goldmine, so make the most of them. Invest in connecting with your previous clients to remind them about the value that you offer and encourage them to come back to your company. Perhaps they achieved their project goals and need to hear about the other ways that you can help them meet new business objectives.
Sometimes all that’s needed is an email or SMS message with a nudge about your capabilities and experience, but it can also be worth offering an incentive for them to return to your services. Craft personalized messaging that targets them specifically and makes them feel that they are missing out by not using your business.
You might include case studies and testimonials about happy customers, updates about new services and/or products that you’ve added, or even a VIP discount or special offer for returning clients.
Cross-sell & upsell to existing customers
Don’t forget about your current customers. You want to make sure that they turn into loyal, returning clients who use the full range of your services. That involves making it easy for clients to discover all your different capabilities.
With the right solution, you can even encourage customers to self-serve themselves with your other services. It could be a centralized platform that displays all your skills, services, and white-label products, inviting customers to request services and schedule meetings without needing to pick up the phone or send emails back and forth.
Pro tip: inTandem makes it easy to do just that. When you implement our business management solution, you can plug in all your services to quickly create a unique experience for SMBs to consume all your services independently and run their business under your brand.
After-sale add-ons & extensions
In a similar vein, it’s a good idea to reach out to customers with suggestions for additional services or products that they can purchase after they’ve bought your core offering. Upselling in this way can help you re-engage current customers, and it’s well-known that it delivers higher ROI than seeking out new customers.
For example, an SMB client that’s paid for your email marketing service might appreciate an AI optimization or AI-powered editor as an extra that further improves their marketing capabilities. Zoom applied this strategy by introducing an AI add-on for its core video conferencing solution.
Monetize payment processing
Payment processing presents another opportunity to increase revenue streams. Offering your customers a solution that streamlines their payments is a useful way to add to the value you deliver. Partner with a financial institution to build your own line of SMB financial products and services.
When you enable clients to accept more payment methods and remove time and friction from payment processing, they’ll rely more on your services. As well as increasing the trust in the relationship, you’ll also be able to take a cut of the fees involved in payment processing or whenever they use your business credit card, for example.
Incentivize referrals
Your existing customers can also help you to open up new revenue streams among new audiences, but you’ll need to give them some encouragement to do so. It’s a good idea to offer coupons, discounts, special offers, or premium tools and exclusive experiences for clients who recommend your services to their friends and acquaintances. You need to make it worth their while to leave you a review or to refer a friend.
Increasing revenue streams is possible
It doesn’t matter what your core offering is or the size of your main audience; every company can find the right strategies to increase revenue and grow their bottom line. Try one or more of these suggestions to increase revenue streams, enhance business resilience, and drive long-term growth for your business.
