How can creators like us, who are new to building online businesses, who have high-value skillsets, how do we scale our monthly recurring revenue (MRR) to get us the freedom we desire? That is the question, and this newsletter will give you the answers. Be sure to subscribe if these are the type of answers you seek.
My name is Boysie Gordon, and welcome to Boysie Talks Business.
And welcome to episode 14!
In the last episode, I broke down the foundation of my content strategy for those looking to build their business. It was an enhanced content strategy from my previous one that netted me a 4-figure deal this month!
Definitely check it out if you want to have a solid content process.
Today, we will discuss a major factor in differentiation… a business model, but going even more specifically, a revenue model. Yes, your revenue model will make you stand out and help you close more business.
Business Model Basics
A business model is simply your company’s process for making a profit.
Most businesses would normally differentiate this way. Whether changing net payment terms or outsourcing work, the business model is centered around profits.
I like to think of it as an internal approach to differentiation since the client wouldn’t have any clue about the change.
A revenue model does something to the external.
The Power of a Differentiated Revenue Model
A revenue model is a company’s process for making revenue.
As a creator business, costs are fairly low. Most creators only pay for the internet and a handful of software to help maintain organization. The biggest thing that creators are concerned with is revenue! This just so happens to be on the opposite end of what most customers use to compare services… cost.
This is where a differentiated revenue model can have crazy amounts of impact.
Most prospects see similar services as the same
Most prospects make decisions based on the short-term
Most prospects won’t understand the non-monetary value
So this is how you play it…
Make a revenue model that breaks their pattern and forces them to objectively evaluate your offer.
This is literally the revenue model that closed my first client from X:
Money Paid Up Front + 50% Conditional Revenue Share
People only care about the money upfront… even my client.
My deal not only lets us share the risk, but it forced my client to evaluate the value of my offer without bias.
Different revenue models pull different levers, here’s a few for you:
A la carte (pay per item) - great if you offer things with a fast turnaround.
Monthly Subscription - the most common form of revenue model
100% Result-based - removes risk from your customer
Paid-In-Full (PIF) - removes risk from your business
Retainer - great if you outsource work to others
Hybrid - gives you the best of any world
When selecting your revenue model, you want to identify your leverage first, then pick the one that is most lucrative to your situation.
Tip: Use a differentiated (from industry) revenue model for the most impact.
Okay, and that’s all I got!
Thanks so much for stopping by!
P.S.
I just covered the last slot for this month (and next). So, I will start a waitlist for those interested in getting dibs the next time I open my slots.
Again, if I can open more next month, I will, but not until I am confident I can facilitate the needs of my current clients. All in the name of quality!
If you are interested, reply “scale,” and we’ll hop on a free strategy call to see if we are a good fit, then I can add you to the waitlist if you like.
EP. 14 This One Part of Your Business is Sure to Make You Stand Out