🚀 How to Discover New Revenue Opportunities: 4 Key Strategies...
Hidden revenue streams in your startup with expert insights from Elvorne Palmer, exploring untapped user bases, proprietary tech, and innovative engagement strategies.
Once you’ve got a product and some growth, you’re always able to use Paul Graham’s default dead/alive exercise to see when you’ll be profitable (and whether you need more time, funding etc. to get you there).
But let’s not forget that your startup’s not static. You can diversify and hunt for more revenue if your growth is a bit slow, or you’re unsure about your market adoption rate.
Sometimes we get so caught up in building and executing the model the way we envisioned it, that we forget that just by operating for a while, we create opportunities everywhere we touch.
Here’s how to take a step back and…
Identify Your “Hidden” Revenue Streams
1. Unpack your existing model
Take a few moments to map out your existing revenue model – focusing on identifying ALL stakeholders, not just your customers.
Now do 2 things:
- Look for places where you have congregations of unconverted users/customers. They didn’t buy into your product, OK, but what will they buy?
- Also, look at ALL your stakeholders. Are there any who, just as a group (database), would offer value to some other business?
Just the other day, I sat with a founder whose product connects consumers with his database of qualified professionals. And we realised that corporates were willing to pay for access to those same professionals, too. Â
Building a quick (POPI-compliant) solution to give them visibility within the database unlocked a whole new stream of revenue.
2. Have any unique IP the industry could use?
Amazon does this quite often – AWS started as an internal hosting solution that worked so well, they could open it up to the broader market.
Ask yourself: What internal tech/methodologies/systems did we build that we could potentially roll out to the entire industry to make money off our competitors?
3. Re-engage your customers
Netflix is pretty famous for changing its business model on the fly – from DVD rental service to digital streaming to film production etc. But it's not because they’re crazy; those are their direct responses to evolving user needs, which they pick up by constantly engaging with their converted users.
You’ve already solved some problems for your customers. How about going back to them and finding out what other problems you can help them with? Chances are you’ll find some good opportunities to diversify in your existing niche.
4. Try different models on the same product
If all else fails, simply apply different revenue models to your product.
Currently selling subscriptions? Try offering it at a big once-off licensing fee.
Got a freemium-based funnel? Try selling the product outright in a different market.
Chances are you’ll learn a great deal and likely unlock some previously hidden revenue streams.
Got a startup revenue hack to share? Hit reply and let us know (and maybe you get featured here, too).
