One is a Scary Number – Developing Multiple Income Streams
Well into March, it's clear that the coronavirus crisis will have a national and global impact on how businesses operate and remain profitable. Looking around at the people and the businesses least affected by what's going on in the world right now, you’ll see people with multiple streams of income are in a better position to survive a volatile market no matter the industry.
Most people realize that having multiple streams of income provides a more solid profit foundation. But contrary to what most online marketing gurus will tell you, having multiple streams of income doesn't have to mean having numerous businesses.
Learn how I was able to layer in multiple streams of income into my business and how you can do the same with yours.
Building Multiple Income Streams in Hard Times
Having multiple income streams isn't a revolutionary idea, but the importance of diversifying your profit models becomes much apparent when your way of making money isn't working anymore. If you're looking to incorporate more income streams into your business, here's how to do it.
Multiple Income Streams Doesn't Mean Having Multiple Businesses
You don't need to start a bunch of separate businesses to have multiple streams of income. For example, when I began this career I was doing the direct mail thing. I quickly realized that I couldn't be dependent on one product or service to build my business. It was the right starter product, but I needed to start to think of ways I could expand and offer other services to the people advertising on my mailer card.
If these businesses will pay to advertise on a mailer, then it's highly likely they will pay for other services that help them market to the local community if I offered them. So, I started doing website design. I managed SEO services. I handled social media for these businesses. I created multiple streams of income for my business, so I wasn’t dependent on just the revenue from the mailers.
Things Happen so Diversify Your Customer Base
At this point, I'm thrilled because I have managed to diversify my income effectively, but what I hadn't factored in was the need to diversify my client base as well. My current set up had me dependent on one specific group of clients buying multiple services. But things happen, right? Natural disasters strike unexpectedly, industries shut down or move away and local economies fail. Policies and laws change the way we can do business. So, what do I have if those mailer clients leave? I needed a way to expand my services further to get even more income streams, so I was protected from those types of situations. But what more could I offer?
I decided to start teaching other people online on how to do direct mailers. I developed a course, put it out, and it did really well. Now I had this additional stream of revenue from selling the course, and I expanded on that. I put out different products on other subjects I knew about, such as how to get clients and how to outsource services.
The entire time I was building an email list, so it made sense to start leveraging that list, sending out emails that generated even more income. I also started a monthly paid membership program and added a paid monthly newsletter as even more income streams from different sources.
Figure Out How to Monetize More Products and Services
So, can you incorporate these examples into what you have going on?
Whether you are starting a business or looking to improve one, the first thing you need to do is to figure out how to further monetize your products, services, or expertise. This applies to every business model – services, skills businesses, physical or informational products, in-store or online – you have to figure out how to make money above and beyond your basic traditional business model.
For example, a CPA has financial services they offer directly to their clients. That is the traditional business model. But to further monetize services, they could create additional income streams by starting a monthly paid newsletter packed with useful financial advice. And they could also offer online coaching for other, smaller accountants and firms. Or add financial or business consulting to their list of services.
Ideas For Creating More Income Streams
In these times, it's crucial for businesses to find a way to adjust and find new ways to make money. No one should be dependent on one profit stream that may fail. A big part of finding multiple income streams is thinking outside the box and getting creative.
Additional income streams ideas include:
- Running a paid masterclass that offers ongoing training and resources
- Joint ventures to sell with or for complementary services
- Host online seminars and webinars
- Selling courses or books on your expertise
- Building a following on blog/podcast and selling ads
Open an online store that sells support or complementary products
It's Time to Find Additional Streams of Income
The current situation should serve as an eye-opener. Building multiple income streams into your business is more important than ever. (Check out Episode X for more on why now is a great time to start a business)
There's no need to go out and start multiple businesses when what you need to do is figure out how to monetize additional services and products your current company can provide. That means finding ways to add other streams of revenue, building off the things you are already doing.
Layering multiple streams of income is how I turned a little direct mail card into the seven-figure a year business it is now. It's why I'm blogging, podcasting, and teaching others how to find a faster and more secure path to profits.
The Scariest Number in Business is One
Talking about building multiple streams of income, I'm reminded of this: The scariest number in business is one, where you only have one of something.
Being dependent on one thing you could possibly lose puts you in a bad situation, and many people are just now realizing that. If you're one of those people, make a decision today to move forward developing multiple streams of income.
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