Ep 150: The Curse of Lumpy Revenue
In this episode I’m talking about a problem a lot of entrepreneurs face: lumpy revenue. So many of my friends are using the launch method and they end up with very “lumpy” periods of revenue. That is, they’ll generate a lot of revenue at launch and then have no revenue for a long period of time. Let’s dig into this problem and how it can be solved.
I want to start by talking about why it’s a problem. Let’s be clear: part of the problem is that we humans tend not to be as disciplined as we need to be. Most people get a big hit of revenue and want to spend that money, and you’ll see that I’m no different when I tell you about my first month of big revenue.
There are three different ways to address lumpy revenue, and the first is payment plans. It’s a very simple idea that everyone gets, but many people don’t offer them correctly. I’m still getting people to sign up during the current pandemic by having diverse payment plans.
The second is coming up with lower-priced product offers. I’m all for focusing on one or two big offers, but in addition to those, you can have little products for people to buy. The third way is having a membership site, which is something I’m focusing more on lately.
Until we get huge and are making so much money that we don’t know how to spend it, we all need to figure out ways to make our revenue less lumpy. Lumpy revenue, unless you are super disciplined, leads to cash flow problems in your business.
What You'll Learn in Today's Episode
- Why entrepreneurs go through lumpy periods of revenue
- My own examples of learning lessons in obtaining greater cash flow
- The three ways I’ve set up within my own business to keep my revenue less lumpy
- How to put processes in place so your business comes to expect ongoing revenue