It’s insane how business models and revenue streams have developed over the past 15 years.

Back in the day when direct sales where the only way to make money, businesses were so straightforward and covered only our basic needs. However now, in an era where innovation, entrepreneurship and impact are the core of most successful businesses, the idea of business models and revenue streams have branched to more than what you can imagine, supporting the initiation of social enterprises.

First things first, what is a social enterprise? Well, Wikipedia defines it as “An organization that applies commercial strategies to maximize improvements in financial, social and environmental well-being—this may include maximizing social impact alongside profits for external shareholders.” I simply define it as a profitable organisation whose services are addressing a pressing social challenge around us.

When you think of “doing good for the community”, the traditional way of thinking pushes you to create an NGO, however, NGOs are not sustainable businesses and depend on grants and charities. This will always haunt your organisation knowing that the donor can at any point in time pull back the money donated.

That’s why it’s advised to come up with revenue streams that can protect your organisation and keep it running long term.

Here are some revenue stream ideas that you should consider for your social enterprise:

1- Third-Party Payers

It’s important to know that you don’t always have to charge the user for your services. You and the user can join forces to create a product that another party would be interested in buying. Here, you’re introducing a third party payer who is your indirect customer.

2- Data

One of the things you should always keep in mind is that as long as you are working, you are collecting data. This data is worth so much for other parties who need this info for analysis and service purposes. However, you should consider the privacy policies of sharing certain data before doing any of this.

3- Double Business Model

Doubling your business model is having two target audiences whom you deliver your products or services to. The key here is that one target audience will receive your product or services for free, while the other will pay for a premium service.

4- Insurance

It’s a very big deal for insurance companies to make sure that their clients are as healthy and safe as possible. What if you can help those insurance companies achieve that goal? This would be of much-added value to them and is definitely worth a good amount of cash.

5- Leasing

In some cases, you might not be using all of your equipment and resources. In this case, you can rent out these equipment in return for cash that will help you sustain your business.

These are only 5 revenue stream ideas for social enterprises, and they definitely apply to regular businesses as well. I’m sure that with more brainstorming sessions we can come up with new innovative revenue streams. If any bright ideas pop-up, please mention them in the comments section. 🙂