Stop Cutting Costs! Increase Your Income Instead

When profit margins are slim, most businesses decide the best course of action is to cut costs. They limit their expenditure, trim their budget, and try to spend less and less. However, this isn’t always the best option. Instead, you should focus on increasing your income instead. How can you do this? Just look at these three ideas for inspiration:

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Make As Much Money From Advertising As Possible

Advertising revenue is one of the best secondary sources of income for business. It helps keep your income ticking over, and can present huge profits come to the end of the year. The key is ensuring you make as much money from adverts as possible. How? By monetizing as much as you can. Get ads on your website, ads on your mobile app, you should even have a separate blog site and get ads on that too! One brilliant idea is to start a YouTube channel and monetize it. You can earn some serious revenue through YouTube, and it will dramatically increase your income. Plus, there’s the added benefit of helping reel in new customers and broaden your appeal with a YouTube channel too. The bottom line is that you must take advantage of ad revenue and use it to boost your income in any way possible.

Sell Gift Cards

Gift cards are a brilliant way you can boost your income without having to come up with a crazy new product idea. With a gift card, someone can spend money and get a car that they can only use with your business. Most people buy these for friends and family as a present on birthday or Christmas. They’re convenient, and benefit you in that you have one extra thing to sell and gain money from. It’s easy to get gift cards printing done and have some cards that look great and follow your business design ethos. Also, gift cards are brilliant for bringing new customers to your store too. A loyal customer might buy their friend a gift card, meaning they have to buy things to spend the money, a real win-win for you.

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Start Selling ‘Add-Ons.’

A great way to boost your income is by selling add-ons along with your main products. What this refers to are any additional things that can be sold to go with your main products. For example, phone companies sell smartphones, then they have loads of accessories like cases, headphones, chargers, etc. Look at your product and figure out what things you can sell to compliment them and provide something more for the customer. That’s the key with these items, they need to enhance someone’s purchase. A customer needs to feel like their main purchase is made better by getting an add-on as well. The good thing is, these items are usually much cheaper than your main products, which helps entice customers while keeping your income ticking over.

Focus on improving your income, and you’ll see larger profit margins without having to make sacrifices and cutting your budget.

If you’re looking for advice on how you can boost your personal income, then we’ve written a guide on that for you to enjoy too!

Practical Ways to Monetise a Blog

Owning a blog is like having a dream. You might have a lot of ideas and a lot of content, and you might even be telling people about it—but what good are those ideas and readers if you aren’t making much money from it? Upgrade from just having a dream and turn your blog into something that you can be proud of that makes money, draws in fans and gets you noticed.

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Method 1: Affiliates

Affiliate linking is essentially telling your customers to go buy something from a specific website. For example, https://www.amazon.com/ has an affiliate program that lets bloggers put Amazon links into their posts and if the readers click on those links to buy a product, the blogger gets a cut of the money. This is great for bloggers that do a lot of reviews on products such as beauty items, electronics and appliances. This method is recommended for bloggers of all sizes because if even a single person makes a purchase, you benefit from that purchase and it’s not based on your traffic.

The best type of posts to write for a blog that uses affiliate linking should involve lots of lists. For example, the top 10 budget keyboards you can buy or the top 5 microwaves of 2017. These lists are overused and not very original, but it’s the best way for consumers to look up different products to make a decision on what to buy. Plus, you also expose your readers to a lot of different products links in a single post.

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Method 2: Ad Revenue

Ad revenue is very slow but depending on the number of impressions you get, you could make a considerable amount of money from just advertisements alone. However, many people hate advertisements and with the popularity of easy-to-use ad blockers, you might not get very much money until you have thousands of viewers.

Adverts work on every type of blog but it’s best if you have a lot of content on your website for people to browse. Making several posts a day is recommended if your revenue solely relies on advertisements. If you think you have high-quality content, then you can install scripts to your website that kindly ask for the viewer to disable their ad blockers. If you rely on ad revenue, then it’s a good idea to get involved with social media in order to draw in as many viewers as possible.

Method 3: Patreon and Paid Blogging Sites

There are websites such as the ones listed on https://www.guestposttracker.com/blog/get-paid-to-blog that will actually pay you for writing on guest posts on their blogs. These bloggers typically ask you to write something very high-quality that relates to their subjects, but this is a great way to get some extra income and build up blogging experience.

How Patreon works is simple. People can browse Patreon or click your Patreon link to read more about what it is you do. If they want to support you, then they will donate a set amount of money that you can choose on a monthly basis. Most Patreons offer a “thanks” tier of $1 per month, and it scales up depending on what you want to offer. For instance, if your Patreons pay you $5 a month, you could give them access to an ad-free website. If they offer you $10 per month, then you could add them to a special mailing list where you keep them updated with your future plans.

Are You Collecting Lost Revenue?

revenueAs a business owner, it is important that you understand the importance of maintaining strong cash flow. This does not only mean generating more sales, but also making sure that your customers pay on time.

It is not uncommon for businesses in the United States to experience difficulty collecting payments.

According to a study conducted by the Urban Institute, more than 35 percent of Americans had unpaid bills and debts that were reported to collection agencies in 2014.

Unpaid bills can eat into your profits significantly, and therefore, it is essential that you have an effective payment collection strategy in place.

Here are some helpful tips for improving your company’s collections process.

Develop a More Effective Collections Process

Be Clear

It is important that you state your payment terms clearly on your invoices. If the payment terms are the same for all your customers, you should list them on your online order form.

Also, you have to state the due date for payment on your invoices.

If your invoices are sent electronically, you can use a billing system to remind your customers when their invoices are about to be due, already due or overdue. If you want to cut services to certain customers because they fail to make payments, let them know exactly when you are going to do so and stick to it.

You should not be afraid of making them unhappy, because they are the ones who are at fault if they fail to pay.

Impose Penalties and Offer Incentives

One of the most effective ways to minimize late payments is to impose penalties on customers who pay late.

Likewise, you can encourage your customers to pay early by rewarding early payers. If they are required to pay a monthly recurring fee, you can offer discounts to customers who pay early for a longer time.

If you are charging a one-time fee, you can give a coupon to those who pay on time.

Make It Easy to Pay

Making it easier for your customers to make payments can significantly increase your payment collection rate.

As such, you should allow your customers to pay in as many ways as possible, such as in-person, online and via mobile, email and mail, and accept all kinds of payment, including cash, check, credit cards, debit cards and PayPal.

Also, try to minimize the number of steps that your customers need to take to make payments.

Ask Your Frontline Staff for Suggestions

According to an article entitled “4 Ways to Improve Collection Efficiency and Reduce AR Days“, you should also find out from your frontline staff if there are any problems that may be reducing collection efficiency. Ask them for suggestions on how to resolve those problems.

Some of your customers may be facing financial problems that prevent them from making payments on time, and it is important that you understand their situations.

However, you cannot be lenient with them, or you may face financial difficulties yourself.

About the Author: John McMalcolm is a freelance writer who writes on a wide range of subjects, from social media marketing to finance.

Are Your Accounts Receivables Coming Up Short?

When you run a small business, you have a lot to think about and a lot to stay on top of. Between your product, your employees, your clients and your finances, it’s easy to fall behind in one area or another.

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Though it’s easy, it’s also harmful, and you don’t want to come up short in any of these facets.

If you’re noticing that your finances are not where you’d like them to be, check your accounts receivables.

This could be an area where you need to pay some extra attention. Accounts receivables are critical to your business as that’s where you keep records of what clients own you what money. If you lose track here, you could be missing out on your income.

Dependency on Your Incoming Revenue

The rest of your company’s financial state is often dependent on your accounts receivable as that’s where the majority of your income comes from.

Some businesses have an easier time getting these bills paid, while others typically have a longer wait time before seeing this income.

For instance, hospitals often notice that patients wait longer than with other businesses to pay bills.

In the article, “Measuring the Performance of Hospital Accounts Receivables”, we see the effect of accounts receivables on all other aspects of finances in a business, including payroll, investments, expansion and expenses.

Follow these steps for productive accounts receivable records:

  • Good records are imperative in this area, and a good accounting program is necessary.

Whether it’s a program like Microsoft Excel or Intuit’s QuickBooks, you need a solid accounting program.

Set up an account for every customer, even if it’s a one-time interaction. Many business owners still like to keep a manual filing system as a backup; that is up to you.

  • Keep on top of outstanding balances.

Use professional communication, whether it’s electronic or paper, and include your business logo, company name and contact information on all communication.

Send out consistent bills in a regular cycle to those customers who owe; you don’t need to send out bills to customers with zero balances.

  • Decide when you will turn past due accounts into a collection agency.

Make sure you notify your clients when you are doing this and how to rectify when they pay.

Also, by maintaining good records, you can allow your clients to pay at a slower rate as opposed to all up front.

This can build loyalty and earn you more business, as some people need to pay this way. Do what is best for your clients and yourself.

Again, it’s hard staying on top of it all as a small business owner, but if you’ve made the commitment and investment in your business, you need to maintain solid records and communication.

You don’t want money that is owed to you slipping by because you didn’t send out bills or follow up when needed.

It’s all part of the business.

As a business owner, how do you go about making sure you get paid on time?

About the Author: Heather Legg covers topics pertaining to small business, marketing, and social media.