Knowing how to generate multiple revenue streams can help you a lot when it comes to growing your business. Most entrepreneurs who have succeeded in running a profitable franchise have diversified their offering, so paying attention to these franchisee and franchisor tips should help you boost your income.
Putting all your eggs in one basket is extremely dangerous as a business owner, so it pays to have a few additional money-making strategies at play. Even if you rely on one income stream for your main source of revenue, having ‘back-up’ options is a sensible idea. Plus, it provides the chance to improve your skillset and develop fresh concepts, as well as add variety to your day.
Businesses are becoming more and more creative to diversify their offering, but it can be difficult to come up with new ideas if you’re used to your existing business model. Here’s how to generate multiple revenue streams - let’s start with a few simple ways to grow your income.
How to generate multiple revenue streams
1. Start a blog or become a freelance writer
You may not appreciate just how much insight you have but, as a business owner, you’ve almost certainly developed an enviable level of experience and expertise. Share your insider knowledge and earn money through blog adverts and affiliate links - or take on some paid freelance work in your free time.
[My personal finance blog] often included shout-outs to the tools I was using and found helpful, so it was a natural transition to add affiliate links as I joined those companies’ programmes. Now I’ve been [blogging] for almost four years, those links reliably bring in four figures every month as people discover my articles and get their finances in order.
—Desirae Odjick, Founder of Half Banked
2. Sell products online
Whether you’re a brick-and-mortar retail franchise or a business from another industry, you could consider launching an e-commerce store. Stick to offering products related to your business, as these will provide the most value for your customers. Often, digital items prove highly successful, as they’re convenient to download and use.
3. Sell branded merchandise
If your franchise has a recognisable logo or catchy slogan, why not give your customers the chance to promote your business for you? All you have to do is print custom graphics onto products like t-shirts, mugs, phone cases and bags.
If you go down this route, it’s usually worth creating the products yourself, as profit margins can be low when outsourcing graphic design work.
4. Create an app
Can you offer your customers a service they could benefit from while out and about? By harnessing your specialisms and channeling them into an app, you’ll create a useful product and increase your credibility as a business. You can earn money by charging people to download it or through adverts and affiliate links within the app itself.
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5. Create an online course
Another way to generate money from knowledge you already have is to develop an online learning course. People turn to the internet to study all sorts of different crafts, so it’s unlikely your programme will be unpopular. Either publish your resources on your website or on an existing learning platform.
You don’t necessarily need to start from scratch; if you’ve already created video tutorials or blog content, for example, you can include them from the get-go.
6. Run live workshops
Running group activities is great fun and it’ll allow you to build trust with potential customers while generating extra revenue. Think about how you can teach your skills in a useful and engaging way; you could organise a series of live events, each focussing on a particular specialism or activity.
Don’t forget to hand out your contact details at the end of every session and tell attendees how they could benefit from your franchise’s products and services.
The best thing you can do is get started. Don’t overthink it and don’t let your doubts get in the way.
—Good Financial Cents
7. Start a YouTube channel
If you’re handy with a camera and editing software, you could opt to create a long-running video series - why not develop tutorials or behind-the-scenes tours? You’ll need to be consistent in your content and uploading schedule, but it could help you generate recurring income through adverts and affiliate marketing opportunities.
Plus, it should boost your franchise’s credibility as an industry expert, which will improve your revenue across other income streams.
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8. Cultivate an Instagram account
While most social media platforms provide the opportunity to make money through affiliate marketing, Instagram is one of the most popular options. Choose a niche related to your franchise and regularly publish high-quality photos. Over time, you could develop a following of like-minded people and generate requests for sponsored posts.
9. Focus on affiliate marketing
Creating blog, app or social media content will give you the chance to generate revenue from affiliate marketing. But if you don’t try any of these strategies, you could find alternative ways to partner with other organisations. Promoting products and services you rate highly in your website pages, news updates or customer emails can be highly lucrative.
You’ll want to partner with and promote brands you truly trust and believe in. Remember, you’re creating value for your followers by providing them with vetted opportunities. To get started, come up with a list of products that you use every day and are passionate about. Then go to their websites and search for affiliate opportunities.
—Michelle Norris, Co-Founder and CEO of Paleo f(x)
10. Refer customers or clients to other businesses
When generating revenue through referrals, you recommend other companies to your customers. If they’re tempted to spend money with them, you get a portion of the profit. This approach can be highly rewarding, as you’ll help your following find other products and services they love, and other companies increase their sales.
How to add new revenue streams to your franchise
Not sure where to start? Here are some tips for generating new revenue streams:
- Upsell your products - Show existing customers how they could benefit from upgrading their current package or buying bonus items or add-on services.
- Create packages - Roll some of your products or services into one handy, cost-effective pack, saving customers time and effort.
- Remodel your current offering for new demographics - Save time by adapting your existing products and services to appeal to more people.
- Introduce subscriptions or retainer models - Establish ongoing relationships with customers or clients by allowing them to buy products or services you’ll deliver over an extended period of time.
- Develop your skills or hire new talent - Create opportunities for new income streams by increasing your skillset and investigating new paths to profitability.
More franchisee and franchisor tips for growing your franchise
If you’re interested in learning how to generate multiple revenue streams for your franchise, take a look at our other handy business guides, right here at Point Franchise.
Alice Tuffery, Point Franchise ©