Multiple Income Streams - 5 Reasons Why You Need Them
By Michele Pariza Wacek ©
This article focuses on
multiple streams of income - meaning that your
business has more than one way to make money. For instance, you sell products
and you sell services. Those are multiple streams of incomes. Why do you need
them? Below are five reasons:
1. Make money while you sleep.
This is a
big one for those of us who sell our time (also known as providing services).
The biggest drawback to selling time is when you aren't working, you aren't
making money. So when you're on vacation, relaxing over the weekend or (gasp)
sleeping, no money is coming into the business. But let's say you create a
product or two to sell in addition to your services. Now you've just created
a passive income stream (passive meaning it doesn't require yours or anyone
time). So if you are taking a nap or out walking the dogs, money can still be
coming into your business. (What a concept!)
2. Leverage your time.
is especially true with income streams that are passive. Basically you're making
money without it taking any of your time. Therefore, you can spend your time
doing something else and still enjoy money coming in from a passive income
stream. This is a good way to use your time wisely. (Rather than work for an
hour, get paid for an hour, you can be paid several times in several different
ways during that same hour.)
3. Fill your pipeline.
If all you sell is
high-priced services, it can be difficult getting clients to hire you. After
all, clients need to trust you and trust they're getting a good deal for their
money. If you offer products or lower-priced services, you're giving those
customers a chance to "try you out" before plunking down several thousand
dollars for a major project or consulting work. Because your clients' initial
investment is lower, you have a chance to lower their resistance to hiring
4. Catch a variety of clients.
No matter what you offer, a part
of your target market is not going to be interested in hiring you. Why? Because
they'd rather do it themselves. Or maybe they don't have the money to hire you.
Or maybe they do the same thing you do and would rather learn from you to better
their own skills. By offering a product or a class or a group option, you're
widening your net. Not only are you able to help more people, but you'll also
making more money doing it.
The more income streams you
have, the less devastating it will be to lose one. Not to be negative, but
things happen. Industries change. Economies change. People want different
things. If all you offer is services, and those services suddenly become
obsolete, what happens to your business? Or, a more likely scenario, what if
you lose your biggest client? Or a couple big clients at the same time? Sure,
eventually you'll find other clients to make up the difference, but what happens
in the meantime? What if it takes a month or two or six? Your bills certainly
won't wait that long. But if you have other income streams, a dip in your
services (or a dip in product income) is no longer so scary because you'll still
have money coming in.
Creativity Exercise -- Find time to create multiple
Probably the hardest part of creating multiple income
streams is a lack of time, especially when your primary business is service
based. So, now that you know how important it is, how are you going to find the
time to start doing it?
Here are a few ideas to get you
- Hire a virtual assistant
(VA) or bookkeeper to take care of some tasks you have no business
- Create systems in your
business so you can complete business tasks faster and more efficiently.
your prices so you can take on fewer clients and make more money.
a Saturday or Sunday to working on your business. (Be careful
with this one as you could very quickly end up burning yourself
a pen and paper and do some brainstorming to see how you can find
to start creating more income streams.
About the Author:
|Michele PW (Michele
Pariza Wacek) owns Creative Concepts and Copywriting LLC, a copywriting,
marketing communications and creativity agency. She helps people become more
successful at attracting new clients, selling products and services and boosting
business. To find out how she can help you take your business to the next level,
visit her site at http://www.writingusa.com.