Multi-Line Revenue Resilience
Build independent revenue levers and shift emphasis when one weakens
- Difficulty
- Advanced
- Time to result
- ~months to results
- Steps
- 5
- Confidence
- 96%
Multi-Line Revenue Resilience protects a company by developing several monetization paths around the same audience or capabilities. Instead of expecting advertising, commerce, subscriptions, licensing, or events to perform equally at all times, leaders treat them as adjustable levers. They monitor which lines are gaining traction, which are constrained, and where the company can redirect attention when conditions change. At Barstool, advertising weakness could be offset by commerce, while other periods favored ads, licensing, products, events, or subscriptions. The mechanism is not diversification for its own sake: each line must serve the brand, and every allocation decision must be tested against audience growth or economic contribution. The result is a more adaptable operating model that can absorb shocks without abandoning its core mission.
Origin
Erika Ayers Badan used multiple revenue lines to stabilize and expand Barstool Sports while operating with limited capital and frequent controversy.
Core principles
- 01No single revenue source should control the company's fate
- 02Each revenue line provides a lever during disruption
- 03Resource allocation should follow evidence rather than habit
- 04Diversification works best when every line fits the same audience
How to run it
- 1
Map the economic engine
Document current revenue sources, their customers, margins, dependencies, and volatility. Identify where the company is dangerously concentrated.
Pro tip Include dormant assets such as intellectual property, community access, or live experiences.
Watch out Do not count several products sold through the same vulnerable channel as genuine diversification.
- 2
Design adjacent revenue lines
Choose monetization options that reuse the existing audience, content, brand, or operating capabilities. Prioritize lines that behave differently under changing conditions.
Pro tip Start with one adjacent experiment rather than launching every possible model.
Watch out Unrelated diversification can dilute the brand and overload the team.
- 3
Instrument every line
Track revenue, margin, audience impact, operational load, and strategic value. Establish evidence that shows whether each line is working.
Pro tip Use a small shared scorecard so leaders can compare unlike revenue models.
Watch out Top-line revenue alone can conceal poor margins or excessive complexity.
- 4
Shift the operating emphasis
When one line weakens, intentionally move promotion, talent, and resources toward a stronger line. Preserve the weakened capability if its conditions may recover.
Pro tip Define likely shift triggers before a crisis occurs.
Watch out Do not react to every short-term fluctuation without understanding its cause.
- 5
Prune and reinforce
Retire revenue lines that repeatedly fail the scorecard and deepen those that improve resilience. Reassess concentration as the business grows.
Pro tip Review the portfolio after major platform, regulatory, or audience changes.
Watch out Keeping every experiment alive creates complexity without resilience.
In the wild
Barstool developed advertising, merchandise, licensing, product development, live events, and subscription revenue. When controversy made advertisers reluctant, the company could emphasize commerce; when commerce softened, it could return attention to advertising rather than treating either setback as existential.
→ The company gained operational flexibility while scaling from a fragile business into a large media company.
A specialist newsletter dependent on sponsors introduces a paid research tier and an annual member event. During an advertising downturn, it pauses sponsor-led expansion and concentrates on subscriptions and event renewals.
→ Revenue becomes less exposed to one budget cycle while the publication retains its core audience.
Common mistakes
Launching unrelated businesses
Revenue diversification should compound existing strengths. Unrelated products consume attention without providing a coherent resilience benefit.
Treating all lines equally
The method depends on dialing lines up or down as evidence and conditions change, not distributing resources evenly forever.
Ignoring operating complexity
A new revenue stream can harm the company if its staffing and fulfillment burden exceeds its strategic value.
Is it for you?
Best for
It is best for audience businesses and startups exposed to advertising cycles, platform changes, or reputational shocks.
Not ideal for
It is not ideal for teams that lack the capacity to operate more than one business model competently.
From the transcript
“When the advertisers were mad at barstool because somebody said something stupid, we shifted to the commerce business.”
“So I was very intentional about growing multiple lines of revenue.”
“I always knew I could dial one up and dial one down”
From the episode
Erika Ayers Badan on Digital Innovation
Erika Ayers Badan