Why most revenue models fail (and how to make yours better)

The Proof Point

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