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A service based business and professional has three simple revenue models. They are direct revenue, leveraged revenue, and passive revenue. Direct revenue is where a business is providing a direct service to a client. You are delivering a one on one service to the client and can not service another client at the same time. Someone else that is your business is able to service other clients. If your business is in the start up phase or does not have many clients than this model would apply to you. It would also apply to you if you can not forecast what the next 6 to 12 months cash flow will be. This revenue model is fundamental and critical to the business without starting here a business can not achieve the next two models.
Once the direct model approach has been achieved then the leverage model can be approached. With this model in place it will add more value for your clients, increase in revenue will be seen, new products will be created faster, and new revenue streams will be created. Leverage revenue means that you create additional revenue by using the knowledge or programs that already exists and taking it and repackaging and repurposing it. The creation of new products may also be passive revenue.
A distributor or reseller that sells your product for you can bring you passive revenue. To be able to move into this model you will need to have a team, a reliable process and system. Before you begin to make money at the passive model you may experience many sleepless nights.
