Looking for new revenue streams? Start charging for services you’ve been giving away.
If you’re looking for new sources of profitability and growth, don’t overlook opportunities for generating sales from services you’re already giving customers for free. Though it sometimes makes sense to stick with a free model, companies too often make that the default option. That’s a costly mistake, say Wolfgang Ulaga and Stefan Michel, writing for MIT Sloan Management Review.
The solution is easy to say but hard to do: determine which services you can stop giving away – then start charging for them. When evaluating any particular service, this can be boiled down to the question: should you bill it, kill it, or keep it free?