Why have multiple income streams? What are the advantages of multiple sources of income?
These are questions you should be asking yourself, and you should definitely try to establish a number of sources of income for your online business portfolio.
Not only do they add up collectively, but they also serve as security; a safeguard against something happening to one income stream and potentially putting you out of business.
The Job Mentality
Obviously many of us have jobs, or have had jobs in the past, because we simply need to earn money and put food on the table. Employment often serves as a sense of financial security as well, knowing we have a payday we can literally bank on week in and week out.
We know how much money we are getting and can budget accordingly. There is nothing wrong with this. People need to work and the world needs people to work so the wheels of industry keep on turning. However, there is an inherent danger in this single pay check mindset.
If you lose your job for whatever reason, suddenly your income plummets to zero!
Some people are so caught up in the working paradigm that they can’t think beyond that. They believe their entire financial future hinges on being employed, having a steady job. For many this is the reality.
No job = No money
If they lose one job, then the only answer as to how to get money is another job. Like I said, there’s nothing wrong with this, except that it’s not very secure financially. If you have employment, but also maybe have some investments such as real estate, or shares on the stock market, then at least there are other possible sources of income should something happen to your employment.
The Business Mentality
I believe there are at least three, probably more, different types of business mindset.
- Those who create a job for themselves and become self-employed.
- Those who involve themself in one business and hire staff to do the work.
- Then there are those who diversify and don’t use the old cliché of putting all their eggs in one basket. These people know the value of setting up multiple sources of income. It is the not-so-secret method of the wealthy.
Diversification Is True Financial Security
Whether you are looking to do business online or off, or even a combination of both, diversifying your business assets is the only true way to attain financial security. If one income stream dries up, then you have others to keep yourself afloat. It’s common sense, really.
Anyone is capable of setting up multiple sources of income. It doesn’t have to be stressful or take up all your time. Outsourcing and employing staff to do many of the mundane tasks will ensure you have enough time and resources to cover the jobs involved in running several different enterprises. Some of these sources might even be passive income streams once set up (an example being book royalties).
Not everything takes a lot of money to set up. Internet businesses are some of the cheapest to do. Whether it’s running an ecommerce website, affiliate marketing, selling on eBay, writing eBooks or drop shipping, internet businesses are cheap compared to their physical counterparts. Often it’s more a matter of being able to put the time into things to get them going, rather than bucket loads of cash.
The other advantage of working online is it can be done in your spare time. If you have a regular job, there’s no need to quit your job to be able to set up online income streams. You can work on your online projects when it suits you. Eventually you may be making enough money where you decide you want to devote yourself fulltime to your internet enterprises. That choice is entirely up to you.
Once you start making money online and learn what works for you and what doesn’t, it’s merely a matter of scaling things up then to increase your income level.
If you don’t have the time to do all the tasks yourself, that’s when it’s a good idea to outsource some of the work. Sites such as Fiverr.com offer a whole variety of services at extremely affordable prices.
It’s very popular among internet marketers especially. People there will write content, design logos, write emails; all sorts of stuff, all done at a price you can afford.
After all, you can’t physically do everything if you have businesses experiencing growth that you want to take to the next level.
To Wrap Up
My whole point of this post is just to state that it’s wise to have a few different sources of income, as that really is more financially secure than just having one. Whether those income streams are online, offline or both, it’s just smarter and less stressful to know you have money coming in from a variety of sources.
One of my main income streams is from affiliate marketing. I learnt what I know about this business from being a member of Wealthy Affiliate. If you would like to learn more about what Wealthy Affiliate has to offer, you can access my review of the company by clicking on the banner below.
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