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.
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.
Experimental Bets (Unstable, High Growth). These are high-risk, high-reward opportunities. You’re experimenting and don’t yet know the outcome, but the potential for growth is huge. Examples: New platforms, editorial initiatives, or partnerships that could take off.
Growth Engines (Stable, High Growth). These streams are both growing and reliable. They’re already working well—so invest more here to scale. Examples: Digital products like online courses, scalable memberships, or niche paid content.
Sustainers (Stable, Low Growth). These streams provide consistent, stable income but aren’t growing significantly. Your goal is to maintain them while exploring other high-growth options. Examples: Membership models, subscription services, or steady foundation grants.
Sunset Streams (Unstable, Low Growth). Revenue sources that no longer deliver and are in decline. It’s time to phase them out or redirect those resources. Examples: Declining print ads or old subscription models that aren’t keeping up.
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. Look specifically for:
Too many or not enough streams in “Experimental Bets.” In my experience, you need at least one.
Opportunities to move streams from Experimental Bets to Growth Engines (or the inverse: a consistent failure to do so).
Innovation that can return Sustainers to Growth Engines.
Existential threats that will turn Sustainers into Sunset Streams.
Zombie products. These are Sunset Streams that offer nothing, but refuse to die.
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.
Please share with friends. Purpose & Profit Matrix has a Creative Commons license: CC BY-NC-SA 4.0