If you were investing in the stock market, you would diversify your portfolio. It makes sense; that way, if a stock falls, you don’t lose everything. Well, the same logic applies to online businesses. You don’t want to keep all of your eggs in one basket. What happens if people stop visiting your blog for a week, which happens to be your only source of income? You don’t make any money that week. But if you had other business ventures in place, the money would keep rolling in. Having multiple streams of income can help you make a consistent living. And that’s true whether you’re an employee or an entrepreneur!
You should establish multiple streams of income early in your business and career. When you’re first starting out, don’t just register for one opportunity. Register for three or four, and dedicate time every day to each one. Your objective during the beginning of your career should be to build up these three of four opportunities so that they flourish at the same time and establish your multiple streams of income and form a solid income base. Once you have three or four streams of income up and running, you can begin to branch out and explore new options, increasing the number of streams you have. Think of it this way – you start a new business. Usually that takes a while to get profitable, but let’s say you get it to the point that you’re making $50k a year from it.
Now let’s assume that you build a small email list for your business – let’s say you work hard and get it to 5000 people in your first year. You send email updates about your business, product and service options, news, etc… you know, all the good stuff. What if you also included just one banner ad for an affiliate in each email? If you email an average of 9 times per month, and your affiliate programs average just $10 commissions per sale, and you have a 0.0001% conversion rate, then by the end of the month you earned an extra $450… just for adding one extra link and graphic at the bottom of each email.Over the course of a year that’s an extra $5,400 or an extra 10% pay raise to your annual income.
Now let’s say you hosted a monthly webinar on something you know for $20 per person. Let’s say you paid $200/month to advertise on Facebook and managed to get targeted traffic to 3500 people for every $10 you spent. That means each month you’d reach 70,000 people with your $200 ad spend. again, applying the 0.001% conversion rate idea, that should leave you with 70 webinar customers at $20, or $1400 per month. Less the original $200 spent on advertising, you just added an extra $14,400 to your income per month.
And now let’s say once a year you held a special event that cost $5000 to put on. Tickets for the event are $97 each, and you advertise all year at $200/month to fill the 200 seats available for your event. You spend a total of $7400. You sell all 200 of your tickets though as you spent all year promoting it. Your revenue for the year for the event is: $19,400 and your costs are $7,400, meaning your gross profit is $12,000. If you lost your $50,000 a year income from your business tomorrow, you’d still have $5,400 from your email, $14,400 from your webinars, and $12,000 from your event, for a total of $31,800. Now swap the word ‘business’ in the above example for the word ‘job’ and you’ll see the point remains the same.
The more streams of income you have, the better. That way, if one of them goes out of business or fails for whatever reason, you have plenty of other ventures to pick up the slack. At the same time, don’t take on more streams than you can handle. You shouldn’t be forced to sacrifice an established venture for a new one. If you make a conscious decision to do so for a larger income potential, that’s great, but don’t put yourself in a position where you are forced to make sacrifices.
Instead, find ways to make your multiple streams of income work together. They do need to remain separate, so if one of them fails, it won’t drag the others down with it. But as long as you make sure they do not rely on one another, they can be used to enhance each other. For example, if you are in charge of a site that sells nature photography, you can and should include your affiliate marketing links on the site. Just make sure that the photographs are the way the site makes most of its money, not the affiliate marketing. Likewise, make sure that your affiliate marketing is making money for you on other sites. Having multiple streams of income can protect you and allow you to make more money with each venture.
If you’re not careful, having multiple streams of income can get out of control and leave you struggling to keep up with all of your ventures. To avoid this business catastrophe, make sure that you follow a schedule. Spend one hour each day writing in your blog, then an hour finding new affiliate marketing links, then two hours writing articles for an online site, and finish up the day with two hours of filling photograph orders. You have to be able to keep track of your multiple streams of income and devote the appropriate amount of time to each. If they get out of control, then you’ll stop making money and may as well just go back to the office. If that happens, not only will you drop from multiple streams of income to one, but you won’t be able to work at home, which is every online entrepreneur’s dream.