Projected Revenue Streams

It's common to see cumulative revenue curves for freemium digital products fitted across groups of users to singular point estimates at various cohort days, eg., Day 90. This can be helpful for guidance, but there are a few drawbacks to approaching the aggregation in this way: - it masks variation in payer behavior and the vast differences in values across the two classes of users; - the singular point estimate is misleading and may inspire too much confidence for certain use cases (eg., setting advertising bids). Another way of approaching the analysis is to segment users by cohort in some defined time window, truncate their individual cumulative revenue curves so that they're all of the same length, and to treat each individual curve as a time series that a curve can be fitted to. Those fitted individual cumulative revenue curves can then be projected and bootstrap sampled, and confidence intervals can be constructed on the means. I published the first in a multi-part series about this concept this week. In the next part, I'll explore using fixed effects to control for hierarchical variation across cohorts or acquisition sources.

Relying solely on traditional ad revenue simply isn’t enough anymore—sustainable growth depends on diversifying income streams. Ad revenues are under pressure, with CPMs declining 18% year-on-year (Reuters Institute, 2024) and stricter privacy regulations limiting traditional advertising’s effectiveness. A case study from The Guardian demonstrates that a strategic shift to hybrid revenue models can significantly boost performance. The Guardian transformed its approach by introducing tiered memberships that offer premium analysis and live editor Q&A sessions. This strategy not only tripled revenue in 12 months but also achieved a 32% membership uptake. Similarly, Forbes tapped into NFTs, providing over 10,000 subscribers with exclusive event access and early article previews—clear evidence that audiences are ready to pay for exclusivity. Even more telling, The New York Times now derives 64% of its revenue from subscriptions, while publishers like The Information have further strengthened their community ties by launching subscriber-only apps that reduce third-party dependencies. These initiatives reflect a broader shift in audience expectations. Consumers are increasingly drawn to high-quality, exclusive content and personalised experiences rather than generic, ad-supported material. Moving beyond an ad-only strategy isn’t just about following trends—it’s a practical move to secure your business for the future by building deeper relationships and ensuring long-term financial stability. Here are the key insights: 1. Diversify Revenue Streams: Embrace innovative approaches such as tiered memberships and NFTs to reduce reliance on declining ad revenues. 2. Enhance Audience Engagement: Offer exclusive, value-driven content that fosters deeper connections and builds community trust. 3. Future-Proof Your Business: Transitioning to hybrid revenue models is essential for long-term sustainability and resilience in digital publishing. The shift towards diversified revenue models not only strengthens financial performance but also cultivates a more engaged and loyal audience. Would your audience pay for exclusive content? Why or why not? Share with me in the comment section. #DigitalPublishing #SEO #RevenueDiversification #MembershipModels #MediaInnovation

EV charging isn’t a utility play. It’s a business model. If you’re just thinking in cents per kilowatt-hour, you’re missing the big picture and the big profits. Here are 5 real revenue streams that smart EV charging operators are already cashing in on: 1. Energy Arbitrage Buy cheap, sell smart. With time-of-use rates and wholesale access, charging operators can exploit spread pricing, especially when paired with on-site battery storage and smart load shifting. 👉 In markets like California and Texas, this can mean up to 40–60% margin improvement. 2. Dynamic Pricing Surge pricing isn’t just for Ubers. With API-driven tariff engines, you can adjust pricing based on time, load, weather, or station occupancy. Some European operators using real-time pricing models have reported 25–35% increases in revenue per charger, while also reducing congestion during peak hours. 3. Retail & Amenity Revenue DC fast charging = captive audience. A typical session lasts 20–40 minutes, prime time to drive foot traffic to shops, cafes, or services. Big players like Target and Starbucks already co-locate for this reason. A well-placed charger can generate $2–5 in retail profit for every $1 in charging revenue. 4. Fleet Contracts Fleets don’t want chargers. They want uptime. Private depots and public hubs can lock in multi-year agreements with logistics, ride-share, and utility fleets. Bundling charging + service + software turns CapEx-heavy hardware into recurring revenue with 10–15% EBITDA potential. 5. Grid Services Load shedding, demand response, V2G, these are real value streams. Operators can earn $50–150 per charger per year in demand response programs alone (source: NREL, EPRI). As V2G scales, these payouts could double or triple especially for fleet and depot use cases. The real winners in EV charging won’t just move electrons. They’ll move margin, dwell time, customer data, and recurring revenue. Don’t build a charging station. Build a business. #EVCharging #EVROI #ChargingEconomics #SmartCharging #FleetElectrification #V2G #EnergyStrategy #InfrastructureMatters #ChargingBusiness

𝗦𝘁𝗲𝗽 𝗻𝘂𝗺𝗯𝗲𝗿 𝟭 in any good projection: calculate future Revenue. As accurate as possible. That's mandatory!! 𝗣𝗼𝗽𝘂𝗹𝗮𝗿 𝗠𝗲𝘁𝗵𝗼𝗱𝘀 ✔️Historical Trend Analysis - Leveraging past performance to predict future trends. ✔️Market Analysis - Understanding market segments and potential impacts on revenue. ✔️Customer Segmentation - Analyzing different customer groups to tailor marketing and sales strategies. ✔️Sales Funnel Analysis - Monitoring progression through the sales funnel to anticipate revenue generation. ✔️Product Lifecycle Analysis - Assessing the stages of a product's life to forecast sales and revenue. ✔️Econometric Models - Using statistical methods to forecast revenue based on economic and market variables. 𝗢𝘁𝗵𝗲𝗿 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗺𝗲𝘁𝗵𝗼𝗱𝘀 ➡️ Driver-Based Forecasting: Focusing on key business drivers like unit sales, market share, or operational efficiency, this method provides a granular view of forecasted revenue, allowing for more targeted strategy adjustments. ➡️ Rolling Forecasts: Instead of static annual forecasts, rolling forecasts update throughout the year to reflect real-time market conditions and business outcomes, providing a more dynamic financial outlook. Curious to know how you all manage forecasting? What methods do you find most useful?

Tired of the rollercoaster of income highs and lows? Let’s fix that. Here’s the truth: Feast-or-famine cycles aren’t just stressful—they’re unsustainable. If you’re relying solely on one-off projects or sporadic sales, you’re playing defense. The key to stability? Recurring revenue. 👉 Retainer services that keep clients coming back. 👉 Memberships that create a community and steady cash flow. 👉 Subscription-based products that deliver value month after month. These aren’t just income streams—they’re the foundation for growth. Businesses with recurring revenue models grow 5-7x faster than those without (source: McKinsey). With predictable income, you can focus less on hustling for the next deal and more on scaling what works. Actionable Advice: 👉 Brainstorm ONE way to add recurring revenue to your business. • Could you offer a monthly coaching package? • Create a subscription product? • Build a retainer model for your services? • Write down your idea and outline your first steps today. Ready to create consistent, predictable income? Download the Strategic Offer Builder and design offers that stabilize your cash flow and set you up for success. ➡️ https://lnkd.in/ewYNzEtq Predictable income isn’t a dream—it’s a decision. Let’s make it happen.

Is retail media the only alternative revenue stream retailers are developing? At Groceryshop we heard how it has become an imperative for retailers to develop other high-margin businesses. Kroger’s chairman and CEO, Rodney McMullen, noted that profits from its alternative businesses had grown to $1.2bn last year; this includes retail media, financial services, and monetising data and insight. Ahold Delhaize USA’s CEO, JJ Fleeman, highlighted that alternative revenue would be a third pillar of growth for the business going forward. Hy-Vee’s president, Donna Tweeten, which launched its retail media programme at the event and has become an important player in healthcare, stated that she wasn’t sure how a retail business would exist in the future without this type of revenue stream. I had the opportunity to share IGD's latest research. We've identified more than 15 opportunities that retailers can scale into significant businesses. These encompass both B2B and B2C operations, some integrated into core retail operations, while others occupy adjacent spaces. And this matters. High-margin alternative revenue streams enable core retail operations to operate at lower margins, significantly impacting commercial negotiations. Enhanced profitability equips retailers with resources for further business investments, potentially creating a competitive advantage and influencing supplier investment decisions.

Most agencies have a revenue model. Few have a revenue engine. Surprising stat: 67% of creative service businesses are stuck in the 'cash flow trap' - high revenue, low profitability, unpredictable months. Breaking down the modern agency revenue stack: Project Revenue (The Foundation): ✅ Milestone-based billing ✅ Value-based pricing 💡 Clear scope boundaries → Predictable project margins Retainer Revenue (The Engine) ✅ Monthly service packages ✅ Tiered engagement models 💡 Success-based components → Reliable cash flow Productized Services (The Accelerator) ✅ Standardized offerings ✅ Fixed-scope solutions 💡 Clear delivery timeline → Scalable delivery Strategic Revenue (The Multiplier) ✅ Advisory services ✅ Strategy workshops 💡 Roadmap planning → Higher margins Agencies with retainer revenue grow faster. Productized services help with margins. Mixed revenue models show less seasonal variance. Revenue model = Business model. Your pricing structure determines your growth ceiling. What's your revenue split across these categories? #AgencyGrowth #RevenueModel #BusinessStrategy

When doing revenue forecasting, I like to think in terms of 3 types of revenue: 1. Known revenue 2. Potential revenue 3. New initiatives Known revenue can be contracted or highly likely. Potential revenue is more speculative in nature and are contingent on actions taken, such as selling to a new customer. New initiatives are things that are completely new for the business, such as new line of business, new and aggressive marketing channels, etc. Each of these numbers should be identified for each revenue stream in the business to get a solid forecast. Known provides the baseline, while potential and new initiatives provide your upside scenarios. When you tie expenses to potential and new initiatives, you can exclude those from the budget and only "unlock" that budget if those are achieved. While there is no magic bullet to make revenue forecasting 100% accurate, this helps ensure the scenarios are based in reality.

🔢 Are Your SaaS Revenue Streams Structured Correctly? One of the biggest mistakes I see in SaaS financial management is poorly defined revenue streams. This leads to inaccurate SaaS metrics, misleading financials and forecasts, and, ultimately, data confusion that can lead to lower valuations. In my P&L deep dives with SaaS clients, we define six key revenue streams: 1️⃣ Subscription Revenue – The foundation of ARR and SaaS valuations. 2️⃣ Variable Revenue – Usage-based pricing models (careful, retention metrics get tricky!). 3️⃣ Services Revenue – Customer onboarding and consulting. 4️⃣ Hardware Revenue – IoT, POS, etc., and bundled software/physical products. 5️⃣ Managed Services Revenue – Recurring but people-powered (not true SaaS revenue). 6️⃣ Other Revenue – Ads, marketplace fees, partnerships, conferences, etc. Misclassifying your revenue streams can wreak havoc on CAC Payback, GRR, NRR, and gross margins—metrics investors and operators live by. Action Item: Review your revenue breakdown on your SaaS P&L. Are your revenue streams structured correctly? If not, it creates a messy downline impact on your financial analysis. Am I missing any major revenue streams? The pic below is my opinion on the order of SaaS revenue valuations. Of course, a lot of art and science with valuations. Do you see it differently? #SaaS