Create Multiple Streams of Income In Your Online Business
You’ve very likely heard the expression, “multiple streams of income”. The phrase has been used in the titles of books. The concept is taught in some business courses.
These days, earning income from a variety of sources is pretty smart. Your business can be more stable in different economies. You can create a more secure financial future. You can have more control over your lifestyle.
Sticking to our theme of Monetization, let’s explore what these multiple streams are and some ways to be smart about the set up.
Work Smart — Leverage Your Time
There are 24 hours in a day. These are the same 24 hours that everyone else has. You can bake bread yourself, or you can hire 100 people to bake bread for you. To be smart about how you use your time, think about how you’ll develop your income in relation to the time it takes to earn it.
If you have to personally deliver all of the products or services of your business, you’ll be limited in what you can provide. One person can work so many hours in a day — somewhere between six to 18 hours, depending on your work style and preferences. Keep in mind that an 18 hour day probably isn’t sustainable long-term, so this sort of schedule should be reserved for project types of work.
When you start your business you may only offer one product or service. If you offer a service that only you can provide, you’re tying your business to the 24 hours you have in your day.
Service providers especially can feel quite stuck in this limitation. An attorney can only see so many clients in a day. A website designer can only code or design during work hours. No work, no product, no income. Even if this income stream can be lucrative, you can only raise your rates so high, and you can only work so many hours.
Once you’ve reached these limits, what can you do to increase your income, or to work fewer hours, or both?
Spin the Spin-offs
With your primary stream of income in place, what else can you offer?
Ideas that work well for nearly any kind of business include a variety of ways of teaching other people what you know.
Are you a house cleaner? Teach people tricks about the super efficient ways you’ve discovered to fit more clients into your week.
Are you a chiropractor? Teach people about the impact of nutrition on the body.
Are you an accountant? Create tutorials for people to learn how to use accounting software.
Here’s the trick: the spin off you choose can accomplish the following…
- You’re creating a product you can sell, which doesn’t require you to be present to sell it. Congratulations! You’ve just added a potentially infinite number of hours to your day. 🙂
- The product you create can take more than one form, so you can offer different types of products from the same starting point. For example, an ebook can be turned into a video with transcript, which can then be turned into an audio recording with workbook, then into a live two-day seminar. How many different versions with more and more helpful content can you think of? Here’s a tip for this idea: make each product offering bigger than the last.
- Other people can sell your product for you. You can create an affiliate program, associate with (hire or otherwise commission) salespeople, or sell a franchise — whatever makes sense for your business.
Eggs in a Basket?
Warren Buffett is famous for saying, “Put all of your eggs in one basket, and watch that basket!”
That’s exactly what we’re doing in this multiple streams of income example.
Buffett is an investor, and has used the same model over and over and over for decades to become one of the richest people on the planet. He put all of his eggs in the investing basket, bought businesses he understood, and has watched that basket grow to a value that is inconceivable to most people.
He didn’t just invest in one business. He used and refined an investing model which he didn’t originate, by the way. He learned from his professor, Benjamin Graham (who, with David Dodd wrote the book, Security Analysis, which is hailed as the book to turn to for learning principles of fundamental investing), applied and refined as he went through his career. Buffett’s eggs in the basket are all of the businesses he’s bought and sold using this method.
You can use this same approach in your business. How big can you grow it?
Are you already invested in your business? Do you like what you’re doing? Do you already have your primary stream of income meeting your daily needs? Great!
Now it’s time to scale.
I bet you can come up with at least two more ideas for making money in your business.
Here are a few more ideas to start you off in your quest…
- Whatever you do, think about what you can teach to others.
- Once you determine what you can teach, how many different platforms can you teach in?
- Once you flesh out a new product on one platform and it’s selling, plan your next product.
Build each income stream so that you maximize your time and money investments, work smart, and develop the business and lifestyle that you get excited about!
SiteSell offers help for you along your business building journey. To learn more about how to develop your ideas, contact the SiteSell Advisor Team, for a free consultation.