How To Create Multiple Streams of Income
You’ve probably heard many times that you need to develop multiple streams of income to ensure stability in life. This is true whether you work for yourself or you have a job.
The main reason is that history shows that some forms of income dry up. As you know, there are plenty of things that were once popular that aren’t now. Items and even processes become obsolete eventually, so having the other streams provides stability.
Pros and Cons of Having Multiple Streams of Income
There are some pros and cons of having multiple streams of income, but most of the cons simply have to do with choosing the wrong way to develop these income streams. It’s always better to develop one at a time, while focusing on your goals and objectives in life and in business.
Why You Need Multiple Streams of Income
Think about what happens to a person who goes to a job every day and then loses the job. Most of the time, this means that they’ve lost their only source of income. Then they’re in trouble because they need to pay bills. Even if they have savings, it can take a while to find another job.
As a business owner, developing more than one stream of income can also help deflect against slow times in business or during changing products or services.FREE Checklist: 12 Ways To Make More Money In Your Business
Design Your Income Streams Based on the Life You Want
In general, there are 7 streams of income most millionaires swear by. These include:
- Earned Income: This is obtained by participating in a business or trade. Earned income typically includes salaries and bonuses, wages, commissions and tips.
- Profit Income: If you’re running any type of business, your profit is the amount that is left over after the expenses have been paid (including your earned income).
- Investment Income: Your investments make money through a combination of interest income, dividend income and by selling an investment for more than you paid for it.
- Dividend Income: A dividend is a distribution of profits by a corporation to its shareholders, usually paid on a fixed schedule.
- Rental Income: Money collected by a landlord from a tenant or group of tenants for using a particular space.
- Capital Gains: This is a rise in the value of a capital asset (such as an investment or real estate) that gives it a higher worth than the purchase price. However, the gain is not realized until the asset is sold.
- Royalty Income: If others use your work (eg your music, photos, writing, art) to make money, you get money
However, when you choose the income streams, always think about the life you want to live – not just today but in the future too.
How to Decide Which Streams Will Work for You
When you’re developing your streams of income, it’s important to create active and passive sources of income. You only have 24 hours in a day, so you need to ensure that some of the income is put on automatic – such as investing in your retirement, buying annuities, or selling products that someone else makes, such as via affiliate marketing.
All of us are programmed to work 7 to 8 hours a day for a wage or fee. One of the oldest passive income ideas is rental income for real-estate, but today you can earn passive income online right from home. Here are some ideas that work well.
- Busy Niche Website / Blog
A busy website or blog is a great way to earn passive income. At first you’ll have to work hard getting up the right content, and finding the right products to promote. You won’t be able to join an ad network other than AdSense until you are more popular, but it won’t take long if you work at on a regular basis.
- Kindle EBooks
You can write and publish Kindle eBooks for extra income. It’s easy and free to publish on Kindle. You can write the books yourself, or you can truly make it passive by outsourcing it to someone else to do.
- Develop an App
You don’t need about coding, because you can find a freelancer on a site like Upwork.com to do it for you. Then you will promote the app to your audience. The app will earn money for a long time if you create the right kind.
- Create an ECourse
With all the simple software that is available now, you can take your idea and create a course in no time. You create the course once and you can sell it over and over again. If you have something to teach the world and you have a website on which you can showcase it, then developing online training modules is definitely something that’s worth doing.
- Develop Information Products
You can write or use digital video to create information products to promote to your audience. In fact you can put them on ClickBank.com, JVZoo.com, and other affiliate networks to allow others to sell the product for you.
- Membership Website
If you have knowledge that others want, you can put it behind a membership wall and collect a monthly fee for those who want to join. Any idea that you have can work as a membership community.
- Affiliate Marketing
There are many products already created that you can start to promote now. You can go the affiliate networks to find products that have affiliate programs that are ready for you to promote. Simply use proven systems to promote their products, and you can be generating extra income in no time.
- YouTube Channel
Around 75% of people who go to YouTube are searching for how-to content, so if you have written an ebook or launched courses and information products, create a quick video and link to an item it makes sense to sell in this context. Another YouTube opportunity is to earn ad revenue. Note that you will only be eligible for ad income once you have 1,000 followers. Once you do, Google will show niche-related ads wherever you allow on your video, before, during and after.
Free Checklist: How To Make More Money In Your Business
When you choose your income streams, it’s important to ensure they fit in with your goals and objectives, as well as your principles and values. Also, the more you can create income sources that are repeatable and reliable, the more stable you’ll become in your life in every way. At first, it will seem like extra work, but if you’re careful and consistent, you’ll soon build a lifestyle that won’t be ruined by losing one source of income
For more information about creating multiple streams of income, download my free checklist, How To Make More Money In Your Business to see how you can generate more income with little upfront work.