{"id":534,"date":"2013-05-10T11:20:40","date_gmt":"2013-05-10T15:20:40","guid":{"rendered":"http:\/\/www.artsjournal.com\/state\/?p=534"},"modified":"2013-05-10T11:20:40","modified_gmt":"2013-05-10T15:20:40","slug":"earned-revenue-contributed-revenue","status":"publish","type":"post","link":"https:\/\/www.artsjournal.com\/state\/2013\/05\/earned-revenue-contributed-revenue\/","title":{"rendered":"Earned Revenue?  Contributed Revenue?"},"content":{"rendered":"<style><!--\n\/* Font Definitions *\/\n@font-face\n\t{font-family:\"\uff2d\uff33 \u660e\u671d\";\n\tmso-font-charset:78;\n\tmso-generic-font-family:auto;\n\tmso-font-pitch:variable;\n\tmso-font-signature:1 134676480 16 0 131072 0;}\n@font-face\n\t{font-family:\"\uff2d\uff33 \u660e\u671d\";\n\tmso-font-charset:78;\n\tmso-generic-font-family:auto;\n\tmso-font-pitch:variable;\n\tmso-font-signature:1 134676480 16 0 131072 0;}\n@font-face\n\t{font-family:Cambria;\n\tpanose-1:2 4 5 3 5 4 6 3 2 4;\n\tmso-font-charset:0;\n\tmso-generic-font-family:auto;\n\tmso-font-pitch:variable;\n\tmso-font-signature:-536870145 1073743103 0 0 415 0;}\n \/* Style Definitions *\/\np.MsoNormal, li.MsoNormal, div.MsoNormal\n\t{mso-style-unhide:no;\n\tmso-style-qformat:yes;\n\tmso-style-parent:\"\";\n\tmargin:0in;\n\tmargin-bottom:.0001pt;\n\tmso-pagination:widow-orphan;\n\tfont-size:12.0pt;\n\tfont-family:Cambria;\n\tmso-ascii-font-family:Cambria;\n\tmso-ascii-theme-font:minor-latin;\n\tmso-fareast-font-family:\"\uff2d\uff33 \u660e\u671d\";\n\tmso-fareast-theme-font:minor-fareast;\n\tmso-hansi-font-family:Cambria;\n\tmso-hansi-theme-font:minor-latin;\n\tmso-bidi-font-family:\"Times New Roman\";\n\tmso-bidi-theme-font:minor-bidi;}\n.MsoChpDefault\n\t{mso-style-type:export-only;\n\tmso-default-props:yes;\n\tfont-family:Cambria;\n\tmso-ascii-font-family:Cambria;\n\tmso-ascii-theme-font:minor-latin;\n\tmso-fareast-font-family:\"\uff2d\uff33 \u660e\u671d\";\n\tmso-fareast-theme-font:minor-fareast;\n\tmso-hansi-font-family:Cambria;\n\tmso-hansi-theme-font:minor-latin;\n\tmso-bidi-font-family:\"Times New Roman\";\n\tmso-bidi-theme-font:minor-bidi;}\n@page WordSection1\n\t{size:8.5in 11.0in;\n\tmargin:1.0in 1.25in 1.0in 1.25in;\n\tmso-header-margin:.5in;\n\tmso-footer-margin:.5in;\n\tmso-paper-source:0;}\ndiv.WordSection1\n\t{page:WordSection1;}\n--><\/style>\n<p class=\"MsoNormal\">I continue to be puzzled, or is it defensive about the question of whether contributed revenue can be considered sustainable, especially as opposed to earned revenue.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>Perhaps because of my not-for-profit background, I see both types of revenue the result of sales (although we cloak the contributed revenue domain in flowery language and avoid sales language).<span style=\"mso-spacerun: yes;\">\u00a0 <\/span><\/p>\n<p class=\"MsoNormal\">\n<p class=\"MsoNormal\">This puzzlement has become a problem, as I have come to know colleagues on the for-profit side of business development, who mostly discount contributed revenue as unsustainable, soft and risky.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span><\/p>\n<p class=\"MsoNormal\">\n<p class=\"MsoNormal\">It seems to me that the same number equations that drive estimates of sales can and should drive estimates of contributed revenue.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>The same can hold true on <i style=\"mso-bidi-font-style: normal;\">reasonable<\/i> year-to-year estimates.<\/p>\n<p class=\"MsoNormal\">\n<p class=\"MsoNormal\">One organization that I led relied heavily on contributed revenue, too much so.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>However, the internal discussion concerning contributed revenue was not whether we would receive any or not, but how much over our <i style=\"mso-bidi-font-style: normal;\">reasonable<\/i> estimates we could raise.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>In other words, we knew that $10 million was secure, but needed $13 million.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>The internal craziness was around how we could or should close this $3 million gap.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span><\/p>\n<p class=\"MsoNormal\">\n<p class=\"MsoNormal\">I would think the same discussion takes place in the sales offices of for-profit businesses as they make their projections for the upcoming quarters and year.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>They know that a certain number of sales is secure, but need to stretch to a higher number.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>The internal discussion is all about how to close this gap.<\/p>\n<p class=\"MsoNormal\">\n<p class=\"MsoNormal\">My defensiveness on this topic grows from having had my students enter a number of business idea and plan competitions, and having had them judged negatively because their revenue plans included contributed revenue.<span style=\"mso-spacerun: yes;\">\u00a0 <\/span>In many cases judges simply said, I\u2019m sorry, but contributed revenue is unsustainable\u2026<\/p>\n<p class=\"MsoNormal\">\n<p class=\"MsoNormal\">What am I missing?<span style=\"mso-spacerun: yes;\">\u00a0 <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I continue to be puzzled, or is it defensive about the question of whether contributed revenue can be considered sustainable, especially as opposed to earned revenue.\u00a0 Perhaps because of my not-for-profit background, I see both types of revenue the result of sales (although we cloak the contributed revenue domain in flowery language and avoid sales [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-534","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-uncategorized","7":"entry"},"_links":{"self":[{"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/posts\/534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/comments?post=534"}],"version-history":[{"count":0,"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/posts\/534\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/media?parent=534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/categories?post=534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.artsjournal.com\/state\/wp-json\/wp\/v2\/tags?post=534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}