Posts Tagged ‘income-diversification’
Diversifying Revenue Generation
December 12th, 2006 • 2 comments Business, Entrepreneurship + Startups, Random Musings, Technology
Tags: AdSense, Digital-Envoy, Digital-Resolve, Google, income-diversification, revenue
One classic startup problem is relying on a single small segment of the market to generate 100% of your revenue. This is fine when your target market is doing well. But your ability to function is at the mercy of the performance of your customers.
Sometimes a diversification may not seem like “real” revenue diversification. Take Digital Envoy for example (you knew that was coming, didn’t you?). For a long time, IP intelligence technology may have appeared to be the company’s only revenue stream. The technology (NetAcuity) was the main source of revenue but the revenue was driven by customers in a number of different markets – advertising, content control, fraud control, etc. At Digital Envoy, we’ve seen that if one market was doing poorly, another was keeping us so busy that we could barely keep up. Digital Envoy has continued down this path by taking advantage of a large opportunity to diversify revenue by creating a business unit focused solely on helping financial transaction companies manage their businesses (see Digital Resolve).
