The digital age is upon us. Many companies have transformed into digital platforms. Even those that are traditionally non-digital rely more upon technology than they have in the past.

CEOs must embrace digitization in more ways than one. They must recognize how it boosts organizational efficiency. They may also see the potential to create digital streams that bring in extra income.

What are Examples of Profitable Digital Streams?

Subscription Services

Subscriptions are an increasingly popular business model. Businesses like them because they save on customer acquisition costs and increase loyalty. Provide reliable services and customers are less likely to consider getting a similar product from a competitor.

Companies have several options in the subscription space. The most obvious is to sell retail products on a subscription basis. Although the products are tangible, the purchasing and delivery process is automated.

The process becomes completely digitized when companies offer virtual services such as streaming services, software subscriptions, learning and educational services, gaming subscriptions, and online newspapers and magazines. Leaders can further take advantage of subscription services by thinking outside the box. They can offer subscriptions to downloadable informative content, templates, e-learning products… and the list goes on.

With some creative thinking, you can determine which subscription services are suited to your business. The right service and marketing approach will lower costs, increase customer retention, and build loyalty.

Affiliate Marketing

Affiliate marketing is an excellent way to increase income, and thanks to modern technology, the process can be completely digitized.

At the most basic level, companies can use affiliate marketing by including content in their blogs and videos mentioning and linking to complementary brands and services. They get paid when their content drives customers to buy an affiliate’s products.

CPM and CPC advertising are more direct forms of affiliate marketing. Here’s how they work.

• Cost per thousand (CPM): With this strategy, the advertiser pays a set price for every 1000 times an ad appears, or for each impression. The ad may appear through social media, search engines, and other marketing platforms- but in this instance, it will appear on the providing company’s website. It typically involves a bidding system that ensures companies only pay when their ads are seen.
• Cost per click (CPC): Cost per click requires a company to pay each time their ad is clicked. Like CPM, a bidding system is in place. Rates vary by region, industry, and season.

Sponsorships

Sponsorships are similar to affiliate marketing, but the approach is more straightforward. The sponsor company pays your company to advertise on their website. In addition to increasing revenue, it can also help companies connect to larger audiences.

Your sponsor should be a good match for your business. They should overlap with your industry without directly competing against it. Companies can attract sponsors by preparing a proposal and building a relationship that continues throughout the sponsorship.

Sponsor relationships are valuable to the sponsor and the company offering the service. You may consider either position when growing your business.

Subscriber Data Through Email Marketing

Organizations may consider charging other companies for email contact subscriber data. However, this can be tricky. You must get customers to agree to let you share their data with another company.

A lack of consent can lead to fines and penalties, and it can seriously damage your organization’s reputation.

A less risky approach involves including other company’s ads in your emails. This strategy allows you to work on a CPM or CPC basis.

Lead Conversions

Companies can save money and increase revenue with a digital lead conversion system. The organization attempts to covert customers through online means which may include emails, free digital information, and social media posts. In time, they may set up a meeting with interested customers which can take place in person or via video conferencing.

Digital advertising tends to have a higher ROI than non-digital advertising because it typically requires less cost and time investment. For example, businesses can create social media posts for free. Other low-cost methods are available. With so many people online, they boost their chances of connecting with their target audience.

While digital marketing is effective, it should be combined with non-digital means for a well-rounded approach.

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Additional Marketing Resources

Top 10 Marketing Priorities for CEOs and Presidents

Creating a Future-Ready Business: How CEOs Can Anticipate and Act on Emerging Trends