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Types of Revenue Streams for Township Entrepreneurs
Posted by Admin (JS) on 18 October 2023, 09:20 SAST
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Starting a business in the township? Before you begin, it's essential to understand how you can make money or, in business terms, your potential revenue streams. But don't worry, this won't be a complicated lecture. Instead, we'll break it down into simple terms so you can easily choose what's best for your township venture.
1. Sale of Goods or Products
What is it?
This is the most straightforward type. You sell a product, and you get money in return.
Example: If you start a spaza shop or sell crafts, every item you sell brings in money.
2. Provision of Services
What is it?
Instead of selling a product, you provide a service and get paid for it.
Example: Hair salons, car washes, or even tutoring. You offer a skill or service, and your customers pay you for it.
3. Subscription Models
What is it?
Your customers pay a regular fee to get a consistent service or product.
Example: Imagine you offer a monthly delivery of fresh vegetables. Customers can subscribe, paying you each month, and in return, they get their veggies delivered without fail.
4. Licensing and Royalties
What is it?
You have something unique, like a design or idea. Others pay you to use it.
Example: Let's say you create a trendy t-shirt design. Instead of making and selling the shirts yourself, another company might pay you a fee (royalty) for every shirt they sell with your design.
5. Advertising and Sponsorship
What is it?
Businesses pay you to advertise their products or services to your customers.
Example: If you start a community radio station or a local magazine, businesses might pay you to advertise to your audience.
6. Digital & Online Streams
What is it?
Making money online by selling products, services, or even information.
Example: You could start a local news website for your township. People might pay to advertise, or perhaps you sell local crafts through an online store.
7. Affiliate Marketing
What is it?
You promote someone else's product, and for every sale made through your recommendation, you get a commission.
Example: You review a popular cooking gadget on your YouTube channel and provide a link for people to buy it. Every time someone buys using your link, you earn a bit of money.
By understanding these revenue streams, you can choose the best fit for your idea and community. Remember, the key is to offer value – be it a product, service, or experience – and the revenue will follow.
