When we go into a business, we often think of only one way of making money – directly from the supply of goods or services. We hardly think of generating multiple streams of income as spin-offs from our primary product.
One product or service can spin off other income streams from the sale of related products. A printed book, for example, can spin off revenues from ebooks, audiobooks, blog, seminars, speaking engagements, movie etc, all deriving from the same content.
A filling station can generate revenues from selling stuff to people who come to buy fuel – eatery, supermarket, car accessories shop, repair shop, ATM gallery, financial services etc. I can go on and on.
In one of the books of the Rich Dad series, Robert Kiyosaki explained the rationale behind writing the book Rich Dad, Poor Dad. The team condensed a business and finance seminar into a board game – the Cashflow Board Game. The game was priced $199 due to the value delivered and cost of production. The challenge was, other board games are in the range of $49.99. If they sold it for $49.99, buyers will think it’s just another board game and return it when they can’t figure out how the game works. To reach the right audience, he wrote the book Rich Dad, Poor Dad. The book became a bestseller and helped sell the board game.
If you don’t develop your revenue model properly, you will be stuck with one stream of income which may determine whether you float or sink.
Usiere Uko is a certified business & finance coach and is reachable on twitter @usiere, firstname.lastname@example.org, www. apexcoachingltd.com.com