The last couple of years have been difficult for all of us. Covid-19 was only the beginning, and we are still feeling the shockwaves that resulted from the Pandemic’s impact on the economy. Businesses need to up their game in today’s uncertain climate. It is a good idea for business owners to consider ways in which to diversify revenue streams.
But how does one go about doing so? Diversifying revenue streams is complicated for small and medium-sized businesses. However, creativity is key here. New and exciting revenue streams require business owners to imagine different directions their businesses could take. Then follow it through with thorough market research. Sometimes, a new revenue stream could be something totally unexpected. An opening into clients that you, as a business owner, didn’t know you had access to.
Why diversify revenue streams?
Mobile technology has opened floodgates to entirely new markets. The need to be constantly connected means that there are people who require data bundles to browse the internet. Or airtime to keep in touch with family and friends across borders. Mobile phones are an excellent gateway to diversify revenue streams. However, it is important first to know how to choose the best fit for your business.
A revenue stream isn’t the product or service you sell but the way your business makes money. Many large businesses have multiple revenue streams. For example, software companies may sell a branded solution to clients but a white-label solution to other businesses. They may sell software in bulk or have a subscription model available for certain types of clients. There are no limits to how many revenue streams a business can have.
Small and medium-sized businesses, however, sometimes rely on only one revenue stream. There is nothing wrong with that, but it entails running a risk. If this one stream dries up, and there isn’t a plan B, it’ll be a hard time for business owners and employees. Diversifying revenue streams is a smart way to keep basses covered instead of relying on only one channel. By doing so, small and medium-sized businesses have a guaranteed second or third flow of money if the main supply fails. And that’s just one of the main benefits.
A beginner’s strategy to diversify revenue streams
Diversifying requires strategic reflection. Why? Because you may run the risk of spreading your business thin. To develop a growth plan, you need to stop and think carefully about what else you can offer your current or future clients. What could be your new and expanded value proposition? Starts with these few tips.
- Offer a new service: If the chance is around the corner, developing a new service is the surest way to find a revenue stream. Look around, be creative, and think about a new service you have the infrastructure to provide, such as selling data bundles for mobile phones with the right tools.
- Look for alliances: Developing a new product or service needs time. Sometimes, however, you can find partnerships that will facilitate the process. For example, if you wish to sell digital gift cards as part of your small business’ value proposition, you could use Reloadly’s API (Application Programming Interface) for digital gift cards.
- Understand market opportunities: Businesses are not islands, and there are many doors to be knocked on. Look around you; what can you see? Does your business operate in a town or city with a large population of migrant workers, expats, and students? You could offer them airtime to be sent back to their home countries.
- Listen to trends: The digital age offers plenty of them. Sometimes, you need to watch carefully where you least expect. Did you know that some online businesses reward current and future customers with airtime or data bundles? By incentivizing customers to participate in a new service or product, businesses can expand their range of action. Customer loyalty programs can guarantee a steady flow of income for those who play it smart.
- Ask around: Ask your current clients. Poll potential customers. What is it that they need that you could offer them? You can set a polling system to reward polled clients with Reloadly’s API for-top ups, thus incentivizing participation.
4 ideas to diversify revenue streams through an API for top-ups
Everyone has a mobile phone these days and an internet connection. The digital realm offers many opportunities for small and medium-sized businesses to find one or two (or more!) revenue streams. As long as the right tools to deliver these goods and services are available, businesses are set to go.
APIs are powerful tools that act as in-betweeners that deliver digital goods to applications. Reloadly’s API for airtime, data top-ups, and digital gift cards is a way for businesses to secure exciting revenue streams. Business size doesn’t matter. As long as you have a web presence, you can easily integrate Reloadly’s technology into your business.
But what can you do with it? What new revenue streams can you cover with Reloadly’s API for top-ups?
You can sell airtime
But what is airtime? Simply put, mobile phone airtime is the amount of time a person can talk on the phone network. It is usually set in minutes. Airtime is popular in countries where prepaid plans reign. Especially in Africa, Asia, and Latin America. Airtime is a form of reward in some of these countries, even as payment.
Why sell airtime as a revenue stream? There are 169 million migrant workers and expats around the world, according to the WHO. Chances are that your business operates in a town or city with a large presence of migrants. They wish to remain in touch with their loved ones back home, and an airtime provider will serve their need. By integrating with Reloadly’s API for airtime top-ups, you provide a needed service while securing a steady source of income. This is a good step to diversify your revenue streams.
You can sell data bundles
What are data bundles? These are packages for accessing the internet through a mobile phone. They are usually set in gigabytes. These bundles are sold for a price that is fixed by market fluctuation and trends in technology. For example, back in 2018, in the USA, 1G of mobile data was priced at US$ 4.64. Today, it is priced at US$ 2.75.
Why sell data bundles as a revenue stream? Merchants can set the size of data bundles. Packs of 1G, 2G, etc. Reloadly’s API for data bundle top-ups offers ease of integration in your web service. They can be offered to national and international recipients. That is because Reloadly’s API allows on-the-spot delivery across different operators.
Mobile phone adoption is a trend that will not stop. That’s why data bundles are commodities that will never go out of style. By 2025, there will be 7.49 billion mobile phone users around the world. A small business that integrates an API for data bundle top-ups in its web service will play it smart by servicing a small segment of this large market.
You can sell digital gift cards
Due to the presence of digital technology in our lives, people are investing money in online products. Digital gift cards, just like airtime and data bundles, are another convenient means by which businesses with an online presence can diversify revenue streams. By easily integrating with Reloadly’s API for digital gift cards, you can start offering this lucrative product on the spot.
Why sell digital gift cards as a revenue stream? Because small to medium-sized businesses can carve a nice piece of this markets’ cake, which will be as large as US$ 393B by 2025. These days, digital gift cards are more than just a small trinket of courtesy. With Reloadly’s API for digital gift cards, businesses can offer their clients access to more than 300 brands. From Amazon to Netflix and everything in between. With little to no technical know-how, you can integrate within your business a new revenue stream that will offer clients a new source of satisfaction.
In fact, you can use digital gift cards, airtime, and data bundles not only as a new revenue stream but as part of a loyalty program. This can be useful if businesses introduce new products or services other than the ones we have talked about.
You can run a customer loyalty program
Loyalty programs are a time-tested method to retain customers. They are an effective way to guarantee the stability of a business’s revenue streams since customer loyalty accounts for most of a business’s revenue. That is because engaged customers will remain on board with a brand they love and trust. Plus, the costs of retention pay off. 67% of retained customers will spend much more by their third year of engagement with than they did during the first six months.
Businesses can design directives and run a loyalty program to reward customers with airtime, data bundles, or digital gift cards. The benefits of doing so are two-fold. On the one hand, these rewards will generate massive returns in the short-to-middle term by anchoring customers to a business’s main service. On the other hand, engaged customers will try any new products and services offered by the business. By giving incentives, a business earns a trusted customer ready to engage with new services, as well as financial security.
Diversify revenue streams with Reloadly’s APIs
These days, the surest way to raise profit and secure business stability is by diversifying services. Digital technologies give us the opportunity to reach customers we didn’t even imagine we could engage with, and the costs of doing so are little to none.
With Reloadly’s APIs, you can start diversifying your sources of income today. They are easy to integrate, have no contracts attached to them, and will be your door to new ways of conducting business. Have we picked up your curiosity? Please, get in touch with us and ask about how we can help you expand your business’ sources of income!
