I am often asked by my clients, "Sophie, how can I work smart vs. working hard and how can I stop going through the feast and famine cycle?" The answer is to structure a lucrative revenue model that doesn't exchange dollar for hours.
When you exchange dollars for hours you will also go through periods of famine. This is because you have a limited stream, that relies on you booking a client, fulfilling the service and then looking for another client.
However, there is a way that you can always be generating revenue. A way that allow you to work smart vs. working hard. A way that allows you to stop exchanging dollars for hours and a way that provides continuous streams of income and regular bulk income.
The way to achieve all of the above is by implementing six basic revenue pillars which are:
1. Residual income
2. High ticket income
3. Leveraged Income
4. Joint Venture income
5. Access income
6. Signature product income
Residual income can be done by offering a membership service to your clients/customers. It doesn't matter if you are a photographer or a salon owner there are ways that you can re-package your products or service to allow you customers/clients to commit to a monthly payment.
I was talking with a spa owner the other week who was confused as to how she could generate residual income from her business. I suggested that she sent out monthly spa products that were used during the spa treatments. This way not only does she get a monthly income, she will also be ''top of mind'' to her customers as they will be using her products on a regular basis.
High ticket income are products or services that roll out the red carpet for your VIP clients. How can you repackage your product and services to make your clients feel special? If you are a coach a high ticket item would be one-on-one access to you, if you are a photographer a high ticket item would be a special finish that you could offer to your clients.
Leveraged income is when you make 2, 3, 5 or 10 times your normally hourly rate. I wrote an article a few months ago in The Huffington Post where I explained how you can make five streams of income from one event. The five are: ticket sales, live stream sales, sales of the manual, creating a home study and selling the audio on iTunes. Events are great to provide leveraged income. Cinemas achieve this every day, they play a movie once and get 100 people at a time to watch this movie.
Joint venture income is achieved when you look within your industry and identify how you can use your strengths to complement another business weakness. A few years ago I was contacted by an author who saw me on Bloomberg who wanted to send he readers to my seminars, because he did not have the capability and know-how to put on his own seminars. This provide thousands of dollars in revenue that I didn't have to do an extra work for. Joint ventures are a must.
Access income are low priced products and services that introduce your ideal customers and clients to your company. Free is great but I see too many business owners offer too much for free. If you give your clients an inch they will take a mile and before you know it you will be out of business. Remember profit is sanity and exposure is vanity. Don't fall in the trap of thinking that if you offer something for free that it is guaranteed that they will buy from you.
Signature product income is a product or service that doesn't change. I see a lot of business owners just launching product after product, service after product. The problem is that between the launch there is nothing that your clients and customers can purchase from you. Having a signature product anchors your business and makes your business know for something. Even though I offer lots of different products and services at different times of the year I am know for my White Space Business Coaching Sessions that provide clarity and creativity in business and revenue models.
By implementing these six pillars your cash flow will also be flowing, you will be able to pay yourself what you are worth, your business will grow faster and you will be much happier.
Until next time remember its your business, your life and your worth so own it!