No matter what your business, it’s all about bringing in revenue. Whether you do it with one great product, service, or a diverse set of offerings, your bottom line is what counts. Let’s take a look at the top revenue streams for agencies working in today’s demanding market.
Perhaps you have a terrific product or service that’s meeting sales expectations. That’s great, but margins on sales of goods can still prove weak, so it’s essential to diversify your revenue streams.
First, we’ll touch on the different kinds of revenue streams, and then list the top revenue streams for agencies.
Types of Revenue Streams
Primary streams of revenue come in two forms: operating and non-operating. Operating revenue is tied to sales of goods and services while non-operating revenue streams represent activities unrelated to the core business objectives. These include interest earned from bank accounts, dividends from stock transactions, or rent on a building. Depending on the industry and diversifying revenue streams, the top revenue streams for agencies are the following:
- Revenue from good sales and services: For agencies, this is the core operating revenue stream noted as sales revenue or service revenue. A forecasting model can note business fluctuations to provide insight into variances and effects on company ROI.
- Revenue from advertising: This can be a one-time or frequent campaign meant to meet the client’s goals. However, this stream is based on the search and promotion of broadcasting the campaign as well as the inclusion of paid ad returns.
- Revenue from projects: The aspect of projects can be approached with unique rules for one-off requests. These can allow the client flexibility and customization for their overall satisfaction.
- Revenue from inbound marketing: Within marketing campaigns for clients, PPC options can be arranged, as well as eBooks and whitepapers as additional content. Besides promoting the brand, more prospective clients can contact you from your team’s work generating leads.
- Revenue from partnerships: Partnering helps agencies generate revenue leads and relationships where there’s a benefit for all parties. This could be effectively executed with content creators or clients for assets that are helpful for an agency representation.
Successful companies need a mix of recurring and non-recurring types of revenue streams from different sources. If one of the revenue streams falls below the standard, another can pick up the slack. A revenue growth formula will help you calculate the progress of your current and potential growth based on production following established business goals and industry standards. The more creative agencies are with their revenue streams, the more results pay off.
The Importance of Diversified Revenue Streams
Steady revenue is a key performance indicator for any business. It helps determine the health of your business and whether you’re a good investment for loans or capital. It ensures you have working capital and can pay employees and professional dues on time. It allows you to grow your business to keep up with the market.
Steady revenue can be challenging to maintain, and that could hurt your stock price if revenue decreases even a little. It’s critical to keep revenue consistent so that you can forecast future prices.
Diversifying revenue streams makes sense from many standpoints. Deciding on streams of revenue depends on your current portfolio and the direction your business plans to take. Consider the following as you start brainstorming:
Your Customers’ Needs
The first thing you need to determine before you offer a product or service is to understand what your customers need and want. If you’re selling shoes, dig deeper to find out the specific attributes your customers value, like comfort. You can build on that concept.
As an agency, you can focus on customers’ needs by providing services that advance their business and minimize their costs. Surveys and reviews tell you what your clients consider important. Listen carefully and brainstorm solutions
Be Proactive, Not Reactive
Solving your customers’ problems before they even know they have any is a great way to add a product or service. Put yourself in their shoes and anticipate questions or issues they might have.
Check out the services your competition offers, and put your own spin on them. Say a client wants to reduce downtime. You might have just the idea for this. Develop the solution and propose it to your current client base. This may grow into different types of revenue streams based on your results.
Don’t pigeonhole yourself into thinking you provide ABC, and that’s it. XYZ might fit nicely into your mix with minimal effort. Build upon what you have; don’t be afraid to branch out.
Top 5 Revenue Streams
After doing research and listening to your customers, you are now ready to increase revenue streams. While this list isn’t exhaustive, it will get you started on a more diversified portfolio:
- Educational Materials
Develop a course, guide, training manual, or e-book to teach your client valuable new skills. These detailed guides expound on the information offered free as lead magnets.
If companies lack the budget to hire you full-time, they could still benefit from initial guidance to get started on their own. Be sure to outline other professional services an expert can offer as their companies grow. You ultimately want to be hired to help them take their business to the next level.
- Marketing Strategy Services
Many companies have no idea where to start with a marketing plan. Offering strategic planning services opens the door to endless revenue possibilities.
Recognizing marketing trends and making forecasts is your forte. You devise plans for other clients and your own company, so why not offer this as a service?
Businesses can’t overlook social media, either. Many companies could use extra help in this area, with everything from creating messages and scheduling posting to analyzing the effectiveness of social media advertising.
You can advise clients on where to post, how often, and at what time of day. Whether you teach clients how to maximize social media or take on their social media strategy from start to finish, this niche isn’t going away.
- Creative Services
If your agency has specialists who work in advertising, web page development, or marketing design, think about them as potential sources of additional revenue.
Offer services to create digital ads, banners, or brochures. This gives you the option of creating the ads and combining them with marketing strategies to execute them well.
- Reputation Management
In our diverse society, companies sometimes get in trouble for poor word selection, advertising messages that don’t come across as intended, or inappropriate management behaviors. Your agency can offer creative services that help a company navigate the tricky waters of political or societal correctness to ensure their campaigns send the right message without offending.
If the damage has already been done through bad press, your agency can still help the company repair its reputation and regain customer trust through effective crisis management. Design and execute a campaign that sends the right message.
Create case studies and testimonials for promotions. If a company doesn’t have a public relations firm or budget, offer strategic moves that slowly rebuild trust in the brand.
- Unique Solutions
During the course of doing business, your agency may have developed a great solution that could benefit others. Maybe it’s software or an app that can be revamped and marketed on the App store.
If you haven’t agreed to exclusivity for the software or app, you could tweak it for sale on the general market.
Another unique solution is to partner with a complementary business. Affiliate links have proven to be popular and profitable even on a modest scale. Using affiliate links lets you advertise another company and its solution on your website, while the other company does the same for you. Some businesses provide excellent bonuses for the opportunity to link on your site.
Effectively using affiliate links can help you reach an infinite number of potential customers. If that link results in a lucrative sale, the small percentage you share from that link is well worth it.
Creating productive affiliate links is an art form in itself. In addition to traffic, you can entice customers with well-placed leads, such as the educational material mentioned above, helpful links, and blogs that draw people to your page.
Diversify Your Revenue Streams
Take some time to review your product portfolio. Ask yourself what would happen if one of your streams of revenue were to underperform or disappear. Do you have enough additional revenue sources to adapt quickly, or would it take some scrambling to make up the difference?
Even if you aren’t too worried and think you have a good variety of resources, it doesn’t hurt to open your eyes and ears to other possibilities. Some of the revenue streams examples mentioned are easy to implement.
Perhaps there are extensions of work you already perform for a customer. If so, you can be a one-stop-shop for clients.
Additionally, if you gain a set of clients from new revenue streams, you can cross-sell them on your tried-and-true product line. Regardless, diversifying product lines and types of revenue streams is an excellent strategy.
To help you further expand on your revenue stream options, SharpSpring is a full marketing automation company that can provide your business with the tools it needs to improve for an increase in ROIs. For more information or to request a demo, visit our website today.
Frequently Asked Blog Content Questions
How do you generate revenue streams?
Doing inventory on your creative offerings will show your abilities and where you have leaky pipelines in your marketing funnels. Start with your pricing model and services to see if you can expand on a service or gain certifications to increase revenue.
How do agencies generate revenue?
Other than services and goods, agencies can have creative specialties and campaigns that make them unique in their niche. Additionally, they establish percentages of ROI on partnerships, campaigns, or advertising.
What are sources of revenue for a business?
Revenue usually comes in the form of operating and non-operating revenues. Sales and service fees are examples of operating revenues. The main source of non-operating revenue for businesses is earned through the interest of dividend earnings.