6 Alternate Revenue Streams To Choose From | Savage & Palmer

Business on Hold? Maybe it’s time for you to Explore Alternate Revenue Streams

by | Jun 24, 2021 | Business Strategy | 0 comments

Business on Hold? Maybe it’s time for you to Explore Alternate Revenue Streams

by | Jun 24, 2021 | Business Strategy | 0 comments

Our Business is on hold due to Corona” 

“Please call me after the lockdown”

“We have no cash flow right now in our business to run things properly or take any decisions at all”

 

These are the most common lines spoken by entrepreneurs all over the world… A pandemic like this can turn your world upside down in a second and businesses all around the world are trying to make ends meet. The biggest hit has been faced by Startups and Small and Medium Enterprises, whose survival depends on a lot of human capital. In India, it doesn’t seem like the virus will die down soon, so the question is… Do we keep our business on hold forever till the “lockdown ends”? Or do we maybe find ways to overcome this and handle things remotely? 

 

While a few are still thinking, a lot have already started taking action and are finding ways to build their channels to get revenue to stay afloat. Gyms and Fitness Companies like Cult.fit, for example, have started Online Workout for a lot of their clients. Experts who have been studying this situation feel that reducing middlemen and changing the business model to be Direct Consumer-Driven will make things easier and faster. Involving fewer people and more tech is also a good solution to cope with this – People can get infected with viruses, but Machines can’t.

 

Making the best use of its time, Quikr has found a way to reach its consumers by launching a service called Stillopen.in, allowing users to find out which essential businesses including supermarkets, groceries, and pharmacies are operational during the lockdown. 

 

So.. should you change your entire Business Model?

A lot of organizations can pivot into Digital Marketing or act as a third party for the supply of Medical goods to others, as these sectors are doing really well in the market. Someone who is, for example, into providing manpower and HR recruitment, can now provide remote resources to other companies. Companies like Swiggy and Zomato, who were into food delivery, now are into the delivery of essential services, thus earning some kind of revenue. 

 

A lot of OTT Platforms like Netflix, Amazon, HotStar, HBO, etc. are also getting a lot of traction because of quarantined families. Specialist Marketing Companies too are doing really well as companies are relying on them to market their services to the public thus increasing their customer base.  

Moving on from the Pandemic to generate New Revenue Channels

Generation of New Revenue streams might be difficult if you have a brick and mortar business model. However, it is important to know about your surroundings, the demand and supply of goods, and how you can possibly be of any use to that.

A lot of companies try to generate more revenue by adopting a turnaround strategy and focusing all their resources on the most profitable business model. While it is a little difficult to take this call right now, there are other strategies by which companies generate more revenue through the following methods;

 

 

  • Selling Online and Globalising your Company

Selling anything online, broadens the horizons of your business, converting it from a local to a national level. With the use of high-speed internet readily available, it has become convenient to open stores and create pages to sell online, free of cost.

 

  • Video Blogging

Video blogging has taken business organizations by storm, especially when everyone is quarantined, where one can EARN revenue by training on specific courses or giving online consultation and what not.

Another way one can use this to their advantage is that if one has a particular product, that needs a little bit of skill to use, videos can be made to train the person at an additional cost. 

 

  • Fremium 

Fremium is a concept where revenue generation is done by segmenting the user base into the ‘free’ and the ‘paid’ user. A good example of this is Spotify where the user gets to use the basic elements of the product free of cost, but to get better tools or a better experience (without any pop-up ads), a fee is charged. 

 

  • Affiliate Referencing: 

Affiliate Referencing is an excellent example of generating a new revenue channel, while also helping your affiliates drive their company’s sales. Depending on the product and program, 5-10% of the product price is a good indicator of the lead or sale fee you’ll receive.

 

  • Building Consumer Dependence

Loss Aversion is making your product so efficient that it gets inconvenient for customers to shift to another product. The way to calculate this is given as the costs related to the risks of letting go of the old product/service + cost of getting familiar with the new solution

Example: iCloud where the first 5GB is free but then is later supposed to be bought and then customers just find it inconvenient to shift to another cloud storage software and hence end up purchasing the extra storage offered by iCloud.

 

  • Convenience and Shortcuts

Customers are usually the best people to receive feedback from. If consumers are facing a particular hurdle and have found a way to solve it, then try incorporating that into your product. Using your time right now, to focus on building ways to make the product better, not only retains your consumers but also attracts new ones. Everyone is looking out for products to make their life easier and the process of handling business smoother and cost-friendly. 

Example: People are conducting their business affairs through video conferencing and Skype used to be the hub of it. People found it inconvenient to use Skype because it was requisite to have a Microsoft Account and Zoom filled that gap for the users and has taken over the video conferencing industry.

 

No matter what the circumstances are, there are, and will always be resources available that can be taken advantage of, if one has the vision and the passion to keep the organization alive. At the end of this entire scenario, there can be two outcomes; 

  • Either you kept your business on hold (including your revenue), but come out of the Pandemic weaker than your competitors; or
  • Find ways and are on the lookout for opportunities to get revenue at this time, so that you come out of this, stronger than before!

 

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