HALO Academy 2 Minute Financial Drills-Revenue

Today we’re going to talk about revenue. Revenue is the lifeblood of your business. The word revenue comes from the Latin word renovir. What does remevir mean? Remevir means to come back to you, to return. So whatever service or product that you are putting into the market, you give that value and you get it back in revenue. Revenue could be cash that goes in your pocket. Revenue could be EFT or credit card processes that go through your electronic funds transfer.

It could be ach. Revenue is generated from everything that comes into your business to return to you for the value that you’ve created and that you’re providing to your members, to your customers, to your partners. So what does that mean? Cash that’s given to you over the cash register. Money that goes into your account through credit cards. Credit cards could be collected two ways. They could be collected through electronic funds transfer, which is eft, that’ll go directly into your account, and also automated clearinghouse, which is known as ach. If you get ACH from one of your members, the benefit is that you’re not going through their credit card, which may or not still be turned on, and you’re going directly into their bank account. These are the ways that you collect money.

You could get initial fees from your members, initiation fees, join fees. You can get monthly payments. You could get annual payments, which are paid in full. You can also get something that we love called annual maintenance fees. That’s all revenue.

Pete Moore is the Founder and Managing Partner of Integrity Square, and teaches all classes live in ISQ’s Executive Education division, The HALO Academy.