What does it mean when we have employees who generate sales and revenue, vs what does it mean when we have employees who stabilize sales and revenue? Do they mean the same thing?

In this episode of Know the Difference, we are going to explore the key differences between two vital roles in a company that are essential for growth and success.

We all know that different employees have different roles which all influence productivity. However, sometimes we misunderstand the importance of various positions and undervalue how they impact profitability.
Let’s start by defining both Revenue Generating and Revenue Stabilizing. Stabilization

Revenue Generating refers to positions that create and facilitate sales and profits for a company. These are positions such as Sales, marketing, account managers, product development, and more. These are positions where it is easy to see the direct, obvious ways that they generate revenue. Whether that is through product sales, billable hours, maintaining subscriptions, or direct service.

These positions are often favored by owners and leaders because there is a clear connection between their direct actions and the company's bottom line.
Now, Revenue Stabilizing refers to positions that provide structure, support, and efficiencies for the organization and the positions that generate revenue. These are positions like HR, administration, IT, accounting, and more. These are positions that are essential to stabilizing the revenue being generated, even though their impact on profitability is more indirect and less obvious. They ensure processes, resources, and sustainable practices are created to keep the revenue flowing, both in the short term and long term.

These positions are often undervalued in organizations because of the more nuanced connection between their direct actions and the company’s bottom line.