How to Create Multiple Income Streams
Even with the challenges, the benefits outweigh the potential problems, especially if you build additional income related to your existing home business. Here are tips for adding more income streams to your home business.
Take out a Piece of Paper and Write Your Main Business Product or Service in the Middle to Start a Mindmap
If you’re a virtual assistant, you’d write VA in the middle of the paper.
Create Four Spokes Titled “Products,” “Services,” “Advertising/Affiliate,” and “Other” off of Your Main Product or Service
These are categories of types of income you can potentially generate off of your existing business.
Create Spokes off of Each of These Categories With Ideas on How You Can Make Money at Them
Earning sources include books, courses, merchandise, coaching, freelancing, speaking, training, selling advertising, and affiliate marketing. For example, a virtual assistant can create tangible or digital products, such as books, courses, and videos that teach others how to be a virtual assistant in the “products” spoke. For services, she can offer additional services, coaching or speaking (i.e., How a Virtual Assistant Can Save Businesses Time and Money). Under other, she can expand her business by bringing on contract virtual assistants and become a manager of a VA company. Not all businesses will be able to come up with ideas for each spoke, but every business should be able to develop extra income streams from their home business idea.
Focus First on Passive Income Streams That You Create Once, but They Continue to Generate Income
For example, writing a book is a passive income stream. You write it once and sell it over and over. The word passive is a little deceptive because you need to market the book. Nevertheless, compared to non-passive sources of income, which you need to do over and over to make money, such as providing a service, passive income streams require less time once they’re created. Other forms of passive income include other written works (i.e., courses), audio or video creations, affiliate marketing, licensing your idea, franchising, or continuity programs (i.e., memberships).
Next, Focus on Income Streams That Can Expand Your Business
For example, public speaking or teaching can create additional income, as well as generate new clients. Another option is freelance writing, in which you'd get paid for an article that would also promote you and your business.
Choose and Set-Up One Income Stream at a Time
The planning and launching of a new stream is the most time-consuming. Avoid the temptation of jumping into several ideas at one time, as putting your focus into many areas at once will dilute your efforts and slow you down.
Wait Until One Income Stream Is up and Running Before Starting the Next
If you have several additional income ideas, wait until you've got one up and running before starting the next one. Work to have systems, schedules, and tools in place to help you manage existing income streams, so you don't become overwhelmed.
Drop an Income Stream If It Isn’t Working
You want to give your additional income streams the time and effort needed to get them running, but if they don’t start generating income or if you hate it, drop it.
Although adding income streams takes time, creating them within your current business is faster and easier than starting completely new income streams from scratch. This method of generating extra sources of income works well for any size business in any industry. For example, Amazon.com started by selling books. Today it sells thousands of other products including its own product, the Kindle, is a print and digital publisher, and now produces television shows. Many service-based business owners add coaching and books to their income streams.
Bloggers who start with affiliate marketing, often create their own books and courses to add to their income stream. You can create additional sources of income for your business, as well. Learn about the rule of 78 for revenue streams.