Introducing UserEvidence Research Content: Turn market research into original content that builds authority.

EPISODE 5

Why Most Revenue Models Fail (and How To Make Yours Better)

The TL;DR

What’s the secret sauce for a killer revenue game plan?

Join Mark and the squad—Emily Kramer (MKT1), Adam Goyette (Growth Union), and Jeff Ignacio (Regrow Ag)—as they spill the tea on crafting killer strategic revenue blueprints. They’re not just talking shop; they’re revolutionizing how we think about growth.

What’s working in revenue models

ALIGNMENT IS KEY

Clear team goals aligned with company objectives create ownership. Big takeaway for revenue growth models – alignment is key.

What’s not working in revenue models

POOR PLANNING PROCESSES

Planning meetings? More like blame games and snoozefests, where real strategy talk gets swapped for box-ticking. They’re the reason solid plans and forecasts are MIA—everyone’s too busy fighting over credit. It’s a team effort, not a solo show.

The key takeaways

  • Align goals with team ownership: B2B marketers should set clear goals and ensure that each team member feels a sense of ownership toward those goals. Doing so aligns projects with the business’s overall objectives and drives team members to work effectively towards common targets.
  • Embrace full-funnel reporting: Marketers must adopt comprehensive planning and reporting practices, looking at the full marketing funnel rather than just top-level metrics. This full-funnel approach enables a better understanding of campaign effectiveness and customer journey, ultimately driving smarter investment decisions and growth.
  • Practice realistic, detailed revenue forecasting: Instead of relying on optimistic assumptions or linear growth models, B2B marketers need to create detailed revenue models. These should include specific forecasts for various marketing channels and account for seasonality, market changes, and potential diminishing returns to set realistic growth expectations.
  • Foster cross-functional collaboration: B2B marketing teams should work closely with sales, finance, product, and customer service teams to ensure alignment and consistent messaging. This collaboration is critical for setting honest and mutually beneficial goals, ensuring foundational reporting, and executing strategic plans successfully.
  • Adapt to change with flexible planning: High turnover rates, unexpected market trends, and other challenges affect business operations. Marketers need to maintain flexibility in their revenue models and business plans, including ranges that allow for unexpected changes and continuous monitoring with feedback loops to make adjustments as necessary.

The things to listen for

00:00 Focusing on driving revenue

03:17 Frustration with unproductive and contentious work meetings

07:40 The high-stakes game of hiring and budgets

10:56 Revenue models require detailed channel forecasts and planning

17:41 Plan early with the top-down and bottom-up approach

21:13 Honesty & reporting are key for planning success

31:04 Organized planning processes are vital for successful businesses

34:49 Team ownership of goals, accountability, and responsibility

36:44 Tying the project list back to your goal

39:56 Grateful for learning and open to follow-up

The recap

We peeled back the curtain on the real deal behind building revenue models, and trust me, it’s like a blockbuster where strategy faces off against the harsh light of day. Emily Kramer hit us with the raw truth about those “oh s**t” moments in planning. Picture this: Your meticulously arranged domino cityscape collapsing with a single sneeze. It’s a maze of red tape crying out for a strategic revolution.

Adam Goyette steps in with the finesse of a chess master, posing the million-dollar question: What’s a revenue model in the absence of a solid game plan? His verdict? An unmitigated fiasco. He doesn’t shy away from critiquing the overly optimistic forecasts that gamble on everything falling perfectly into place.

Enter Jeff Ignacio, the finance sage, who weaves together insights from marketing, sales, and operations into a harmonious revenue masterpiece, pleasing to any stakeholder’s ears.

MARKETING MAYHEM: A REAL-LIFE ‘SQUID GAME’

Picture “Squid Game” meets “Settlers of Catan,” except with the teamwork skills of kindergarteners. Emily and Adam lay it out straight: the battlefield of team alignment is no child’s play. It’s an all-out war with biases ablaze, and not everyone makes it out unscathed.

Jeff’s secret weapon? Adaptability. With data reigning supreme and feedback loops as its scepter, neglect them and watch your kingdom crumble. It’s a world where marketing and sales are practically speaking different dialects.

UNFILTERED TRUTHS OVER DRINKS

This discussion is akin to those candid, after-hours bar conversations where the facade falls away. It’s the raw, unfiltered insights from our guests that keep you coming back for more. So, let’s scrap those paper-perfect blueprints that can’t withstand the first storm.

And hey, before you get lost in the endless scroll of LinkedIn, hit subscribe. Bring your bold opinions (and perhaps a cold brew) to our next session, where we pull back the curtain on the strategies that truly make a difference. Let’s make our next chat filled with actionable insights, not just buzzwords.

Get Evidently in your inbox

Get a bi-weekly email with my hits (and misses) as a first-time VP of Marketing, new examples that inspire my thinking, and our best content.

Mark from UserEvidence

Subscribe to Evidently