What is it? The Purpose & Profit Matrix is a very, very simple strategic tool that maps out your revenue streams across four categories based on their stability and growth potential.
Why use it? It helps you pinpoint where to focus your energy, whether that’s doubling down on success, exploring new opportunities, or moving away from declining models.
Why download? You get the full version of the matrix, breakdowns and examples for each quadrant, expert tips, and a bunch of actionable advice on how to spot anti-patterns and things wring with your current strategy.
When should I use it? Regularly. Use it to evaluate when to invest in a new revenue product and when to kill it. Use it to interrogate whether your “steady” revenue streams are still reliable. Use it to understand whether you are experimenting too much, or too little.
But what is it, exactly? The Purpose & Profit Matrix breaks down into four quadrants. On the X-axis is stability; on the Y-axis is growth.
How to use it. Get the core members of your team into one room. Together, write down all your revenue streams (potential and current) on post-it notes. Collectively discuss which revenue stream goes into which of the four quadrants and place them there. Analyse potential threats and improvements to your revenue plan.
Why it works. This matrix gives you a clear framework to manage complexity and make tough choices. When considering new revenue, most people focus on evaluating different revenue types (like books, digital ads, or memberships), which is important.
But even more crucial is understanding the risk and longevity of each stream and ensuring you have a steady pipeline of experiments to futureproof your revenue. The matrix helps you do that quickly and cheaply. By constantly evaluating and adjusting where your streams fall in the matrix, you stay ahead of market changes and make sure your revenue model evolves with your audience.