Friday, January 31, 2014

Be Smart…Some Revenue Is 10x Better than Others

Revenue is revenue is revenue, right? Not really. Solution selling training programs maintain that some revenue is better than others because it holds more promise and security for the future. Here is the revenue you should aim for…

  • Go for diverse revenue. Don’t rely too much on revenue from just a few clients or from customers that represent just one industry. Spread your bets. A rule of thumb is that no more than 15% of your revenue should come from your top five clients.
  • Go for recurring revenue. Repeat revenue streams and longer-term contracts that create more certainty and visibility are of greater value than one-time sales.
  • Go for high margin revenue. Of course, margins vary from industry to industry but strike for business from clients with the highest margin of profit. This is where revenue brings the biggest bang for the buck…greater profit for less investment of time.
  • Go for revenue from existing customers. New customers keep your pipeline filled as your customer base changes but old customers allow for better revenue predictability. Your past record of sales help make sound future business decisions. 
  • Go for an aligned portfolio mix.  Customer purchases that represent solutions that are aligned with your business and sales strategy are strategically more valuable than transaction or commodity-based purchases because they represent revenue and profit for where you want to go and how you want to be perceived and positioned compared to where you used to be

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