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Monetizing Your Business

So every business needs some form of capital, and a way to earn income. There’s so many different ways to achieve this, but I want to talk about my new business and the ways in which I am monetizing it creatively.

Creative monetization to me means exploring ways to earn additional revenue on top of just selling a product or service. It means going beyond just your primary income source and finding additional revenue opportunities. This can include up-selling / cross-selling, partnering with industry-adjacent companies, affiliate sales, and more. It really depends on the particulars of your business. Hence the “creative” bit…

Start-up capital

A quick note on this before we get into monetization. The initial money for a business has to come from somewhere, usually your own savings. That’s also the case for me with this new business – I’m basically fronting the capital in hopes of bootstrapping something that makes more money.

This is how most businesses start. Some start with an initial “seed round” raise, but in most cases it’s just “some person” with a bit of money, time, and an idea.

My Income Sources

Alright time for the meat of this – how am I gonna make money with my kooky reselling business?

Obviously direct sales is the primary revenue generator, and likely will be for a good while. Because of existing competition I’ll be boosting revenue from a few sources.

Recurring Income

Paid membership to a site, store, or service has been a culturally accepted way to do business for a while now. Costco and BJ’s wholesalers are a prime retail example, while the various “box-o-stuff” companies offer an insight into the online way to do it. Do I even need to say SAAS? That whole model is recurring subscription revenue.

As I mentioned in my previous post, I will be making use of Patreon to manage these subscriptions for me. With Patreon, patrons can donate as little as $1 or as much as you want – you can set the tiers and rewards.

In my case, I’ll be offering Patrons discounts on the goods and services I’m selling and a few other unique perks related to my industry. This will act as a gateway to both recurring revenue and the ability to generate revenue-on-demand via sales, etc.

Income-on-demand

With a base of Patrons established, I’ll be able to take advantage of having contact information and a communication channel established to generate additional income.

Perhaps a related company is offering an affiliate opportunity that I can present to my customers (assuming it adds value to them, of course!). Or I can close out old or less valuable inventory with flash sales to lower my carrying cost and put some cash in my pocket when needed.

The point is, having an already loyal customer base can generate additional opportunities, but be careful.

You don’t want to alienate customers with over-offering or spammy sales pitches. At some point they’re going to realize you are treating them like a cash cow. If you are, not only will they never come back, but they may actively work to discredit you.

Like in the real world, at the end of the day all you have is your word. Don’t abuse it!

Ad Revenue

I also mentioned previously that I’d be creating Youtube videos as a part of this business. When you reach a certain viewership, Youtube allows you to earn around $3-5 per 1000 video views.

First, I have to even get to the point where I can offer ads. And even after that, it will likely translate to $3 or $5 per video for me to start. With enough viewership, content itself could eventually produce several hundred dollars or more daily.

Wrapping it up

So for this business, the plan is to generate revenue from:

  • Product Sales
  • Recurring monthly subscribers / supporters
  • Youtube Ads
  • On-demand sales, promotions, etc

Just as with your personal life, if you want to increase your chances of getting rich with a business, you need to have multiple sources of income. Hopefully this should get you thinking about creative ways to monetize your business.