- Cash – obviously if you can make a sale that’s revenue for your company. One example of this would be a facility that sells monthly memberships.
- Attention and Trust – now there are lots of businesses that need this. For example: I’m going to watch channel 6 news tonight. Well, I’m not paying them cash. I’m giving them attention and trust, in which they can figure out how to make money through advertising.
- Referral – Does your service or product work better when your friends use it too? Krispy Kreme uses the revenue of referral. Every time they open up a new location, employees start giving away thousands of donuts. The people most likely show up for a free hot donut are those who have heard the legend of Krispy Kreme and are delighted that the company is finally in town. These people spread the word. They tell their friends and even bring them into a store. Our marketing firm uses the revenue of referral by refusing to only do one consultation. If any prospect engages in a paid or complimentary consultation we offer them another one to give to their colleague. Why? Because we do consultations so prospective clients will share the value and insight they received with others. So that their colleagues around them would be on the same page as them when it comes to approaching marketing as a process. Turns out if you give someone a consultation it feels totally different than if someone goes to your website and choose to fill out a form for a consultation. The gift of a consultation is a magical thing that changes the conversation so that’s part of the referability we’re trying to build into our services. And it 100% works better if your colleagues know the concept of a marketing process and can hold you accountable.
Bonus: Revenue streams – How can we create more streams of revenue? There are only three ways to grow:
- add more customers,
- increase the average transaction size,
- increase the number of purchase per customer.
It’s actually easier to sell more to existing customer than add new customers.
- What services or products could you add?
- What packaging, pricing or promotion could you realign?
- What new markets or segments could you enter?
Question: Do you know which one or two or three your business needs?
About the Author: Patrick McFadden is the marketing consultant to call when you want SALES … not just words.. He is also an advisor and featured marketing contributor to American Express Open Forum and has been named a marketing thought leader for small businesses.