As expert entrepreneurs, one of the biggest decisions we make is choosing our monetization model, which I define as the mechanism by which we turn our magic into money. The reason is that our model largely determines how we spend our time, the quality of our life, how big the business can grow, and the impact it can make (not to mention the obvious – how we generate revenues!)
Watch the video below, or keep reading for the “Cliff's Notes” version.
Here are 4 things to look at when evaluating your existing model, or considering a new one:
- Suitability – How well does this model suit YOU? Does it align with who you are, what you enjoy, what you are trying to accomplish, your passions, your gifts? This is key! Are you monetizing your magic, or are you monetizing your time and effort? When you monetize your “magic” – AKA: what you're best at, what comes easily to you, and what doesn't require a ton of hustle and effort – everything flows more easily.
- Stability – Does your model provide stable recurring revenue or is it a rollercoaster of up and down revenue? This is where what I call the “Big Back End” comes in, which is what I call a model in which all roads lead to some sort of long-lasting client relationship. I recommend this model not only for the financial benefits to you financially but also for the tremendous value it creates for those you serve and lead.
- Scalability – Ask yourself, “can this model grow”? What makes a model scalable is having established internal business processes and structures. Think automations, systems and SOPs. Simplify what you can for efficiency, which makes growth easier (and less expensive!)
- Saleability – Whether you want to be in it for the long haul or you plan to one day sell your business, saleabilty is a key element to consider. Having the ability for your business to eventually be sold and run by another entity or person, means that the business has value on its own, and can be run successfully even if you take a step back.
Please check out my full video to learn a bit more about this topic!
If you are structuring your business model and would like to chat more about my monetization model techniques, Click here to find out a little about my upcoming September Business Breakthrough retreat!