In previous articles, we have explored some of the tools you can use to analyze how well your website is doing. Page views, clicks, and search engine rankings are ways to measure the success of your online business, but what other ways can we look at? One way to see how well your business is doing is to take a closer look at your incoming revenue.
The fact that your business’ income reflects its success is an obvious statement. However, dividing your income into different groups can help tell a more detailed story about your success. Let’s take a look at three different types of business income.
Operating Income
Operating Income is any revenue made from your business’ core activities. Sales of products and services make up the majority of this category. This category of income is the best representation of how well your company is doing. It illustrates the efficiency of your operation, and thus may be used by shareholders and potential investors to assess how profitable your business is.
Non-Operating Income
Non-Operating Income is income gained outside of the core activities of your business. Rather than sales, this income stream tends to be from passive sources. Rent, interest on an investment, royalties, and other forms of passive income fall into this category. While your business makes non-operating income, the indirect nature of this income stream makes it inaccurate when depicting the success of your core business.
Exceptional Income
Exceptional Income is income that you only earn once. Income from situations such as legal action or selling company assets fall into this category since they are not scheduled. Since these flows of income are random, it is best to not include this kind of gain in your total revenue when evaluating the success of your business.
The Bigger Picture
While there are a variety of incomes your business can earn, a gain is a gain! Interested in earning more income passively? One way you can gain more from your business is sharing your knowledge with others via a digital course. Check out Amy Porterfield’s “Course Confident,” a live 5-day bootcamp that teaches you how to start your own course and earn additional revenue!
