With as much uncertainty as there is with job stability in the world, it blows my mind to think that everyone doesn’t see the need for a second stream of income. I actually prefer more than two streams, but at a minimum two is better than one. If you are an entrepreneur, you have no excuse at all…
One of the biggest traps that new entrepreneurs fall into is endlessly trading their time for money. At some point, you need to set up some passive income methods that share your knowledge around the clock. This can look like online courses, membership sites, ebooks, and affiliate marketing just to name a few examples. One reason that you want to do this is to increase your overall earnings, but it gives you options if one particular avenue isn’t generating much revenue. Part of the massive appeal of entrepreneurship is freedom over your time, but that will never happen without a steady stream of income. How can you enjoy yourself, if all you do is work? I am speaking more to myself than all of you with that last statement, by the way.
Besides the obvious economic impact of diversified income sources, it is just plain fun tinkering around with new things. I absolutely love trying new things in business and you never really know where you will experience the most success until you try. Regardless of your area of expertise, your experience has value to other people. Don’t you dare let your “inner critic” tell you otherwise! You are always further along than someone else and doing something better than someone else, so there is something to be gained from all of that.
I will use myself as an example for a moment. I have done voiceovers, career coaching, startup coaching, copywriting, and podcasting for income which requires my time in exchange for a fee. What happens if all of those opportunities go away at once? Although it may seem unlikely, the failure rate of new startups is staggering so it does happen to people all of the time. I have actually experienced a similar scenario and the outcome is not a favorable one at all.
Passive income sources are helpful and even additional business ventures in unrelated areas are not a bad idea either, as long as you have the time to also do them well. I am currently embracing all of the above. I have several unrelated business ventures and passive income projects in the works to keep myself entertained and to minimize my chances of going out of business. Diversification is a strong focus of mine and I feel like it should be for anyone who is serious about their entrepreneurship.
Now, let’s talk about you.
Think about the products or services that you offer right now. Can you package and sell any of your expertise or experience in a book or online course? Do you have a lot of traffic to your website or podcast that affiliates or even traditional advertisers might be interested in? Do you have unrelated experience in the corporate world that you can use to freelance in a consulting capacity? These are all things to think about when considering another few income streams for yourself. I like passive income and income coming in from unrelated sources and you should too.
Here are my big takeaways for why you need multiple income streams:
- It’s fun
- It will increase your overall revenue
- There is more stability in diversification
- Transitioning from active to passive income will give you time back
What different income sources have worked for all of you? Leave a note in the Comments section below.