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Multiple Streams of Income - Why You Need Them
One of the great things about the internet is that things change so quickly. This is good as it allows new marketers to take advantage of novel trends and new developments. On the other hand of course, if you don’t respond quickly to new market conditions, your business – and income – can be adversely affected.
That’s why you need to have multiple streams of income – so that if your current top earner disappears off Google’s radar or one of your many competitors introduces a new product that wipes the floor with your best offering, you have other income streams to fall back on.
It’s just like buying stocks and shares – you want to have a diverse portfolio to avoid any sudden spikes and glitches in the market. Or put it another way – don’t put all your eggs in one basket.
That’s all well and good, but just where are you going to find these multiple streams of income? Sometimes it can be difficult to find even one business opportunity that’s worth investing your time, energy and money in. The first logical place to look is the market.
It’s not always easy to get hold of hard facts and figures when it comes to marketing and often, when you do get some, they are well out of date. However, the figures below show the UK market percentages of directly sold goods for 2000, a year when the total spend in this area was billion. These figures are sourced from the UK Direct Selling Association and make interesting reading.
SERVICES 32%
(telecoms, utilities)
PERSONAL 26%
(cosmetics, fragrances, skincare…)
FAMILY 17%
(Books, toys, games, business aids …)
HOUSEHOLD 14%
(Security, water treatment, electrical…)
WELLNESS 7%
(Nutritional, diet plans, supplements)
FOOD 4%
(Frozen & other)
The size of the market may vary, and the relative positions may change – but the top five above will probably be able to provide consistently good income streams. The obvious omission from the above list would be online gaming, which is a relatively new phenomenon.
So how do you get started? Simple, just pick one of the areas and do some background research. Remember to use a logical approach when evaluating your options – the key areas to look at are; the company; the pay plan; the product; the level of admin; the sales methods available and the cost – both start up and running.
If this is your first business then try to start off with an opportunity that will provide you with residual income. Concentrate on only one business at a time. Work this until you get it to an acceptable level where it is growing without too much time input on your part. It doesn’t need to be making thousands of dollars every month – it’s easier to arrange for 5 businesses to return 00 each than it is to arrange that a single business will return 00 a month (the law of diminishing returns).
When you are achieving consistent growth month on month, pick a business opportunity in a different sector and repeat the process. Then do it again – and again. Aim for at least 3 and preferably 5 solid businesses. Try to have at least 40% of your income as residual income – this is your baseline.
It will probably take at least 6 months, and possibly more, to get each business to the steady growth phase, but it’s well worth the effort. This will provide you with a diverse income which will be stable and highly unlikely to be severely impacted by changes in market conditions.
If an opportunity arises in one particular area you can focus on that for a period of time in order to maximise your profits. And if there is a downturn in an area you can always use the income from the other sectors to weather the storm.
And when you eventually have your multiple income streams online and they’re all working well – always be on the lookout for any new opportunities to add to your business portfolio. You can never have too much of a good thing.
About the Author: Hamish Hayward
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