It’s well-known that self-made millionaires have multiple revenue streams. When Thomas Corley, author of Rich Habits, “questioned self-made millionaires on their income streams, nearly two-thirds reported having at least three income streams, 45% had four streams of income, and 29% had five or more.”
But the more pressing questions by aspirational millionaires in the making is this: How can I create multiple revenue streams? The answer is both hard and simple: “Diversify your businesses and investments into various, non-correlated sources of residual income, so that you’re never reliant on any one source.”
Consider what you can offer to generate additional income, ideally passive income. Here’s a look at 4 ideas on how to create and manage multiple revenue streams.
1. Create an information marketing business.
“Today every business is an information business, everyone idea can become the big idea and even if you don’t have a business yet, you can start from scratch and earn substantial income doing internet marketing as an author, speaker, coach, seminar leader, and online information marketer.”
The crux of information marketing is translating your personal genius and wisdom into a consumable format so others can learn from your expertise. It’s an information product. You are an expert in something (likely whatever it is you are making, doing, selling, or offering).
You have followed a specific path, or a formula, to get to where you are today. And there is a market of people who would love to learn how you did it so they can replicate your success. And better yet they will pay!
For example, I own a music academy and I make online video courses available to students as part of their monthly membership fee. It’s all automated, the content is pre-recorded, and it doesn’t involve any of my time or energy (outside of what it took for me to create it).
There are courses out there that teach you how to write your own online courses. But if you’ve ever taken an online course you’ll have an idea of how to structure your own course. Udemy.com, a marketplace for online learning, is a great place to start and review the structure of successful information products if you want to keep it simple.
2. Develop multiple sources of site traffic .
Another way to increase your income is to look at the traffic channels that bring visitors to your current website. For instance, are you just advertising on Facebook or Google? Have you explored organic or paid promotion on Twitter, LinkedIn, YouTube or even affiliate options?
Are you guest blogging or submitting your top content to aggregator sites like Reddit? I use email marketing, Facebook and Instagram ads. We also have an affiliate program for our teachers so they can help promote the courses.
3. Launch another business or product/service.
The most obvious way to create additional revenue streams is to build several businesses or launch new products or services within your existing business. Consider how you can better serve current customers or what other niches you can easily expand into.
If you already have a loyal client base, consider expanding your offering for more complimentary products and services, or identify another offering for the demographic you currently serve.
4. Embrace automation .
Whilst setting up a number of companies can be very exciting be careful to make sure you’re not taking on too much. I juggle six businesses, but I do so with the wonderful power of automation. Almost every aspect of every business is taken care of by robots. I even have a virtual agent customer service bot for our out of office hours so I never miss an enquiry.
I use Acuity online appointment scheduling software to look after our bookings, Stripe, a digital payments service, to look after payments and Zapier, a web app automation service, to automatically move customers into the right workflow in my email system.
Meanwhile, Xero generates automated invoices and receipts and PayWhirl looks after our membership systems by accept recurring and one-time payments directly from your website.
All our social media activities are automated using a mixture of Hootsuite, Buffer and Onlypult (to schedule Instagram posts). I also have a team, without whom it would be impossible to manage all of the various revenue streams I’ve built. There are some things even a robot can’t do!
Management of revenue streams is just as important as the creation of them. If systems aren’t in place to manage the influx of enquiries, sales and service then you will inevitably struggle, if not fail.
Passive income is a brilliant source of income if your automation is concrete. Once you’ve created your content, set up online marketing systems, revenue collection and automated bookkeeping, you can make money in your sleep whilst never having to lift a finger for that particular revenue stream again (bot glitches aside of course).
Creating a passive income stream is also a genius way to raise the necessary funds for your next business venture, which may demand more of your time, energy and active involvement. Caution aside, the sky is the limit.
Anything is possible so go for it!
This article has been edited and condensed.
Entrepreneur, musician and business consultant, Harriette Hale graduated from City University and The Guildhall School of Music. The serial fempreneur runs The North London Music Academy, The Chocolate Box Music Agency, Academy Mews Dance Studios and Industry Inspired Artists, a growing empire which combines the worlds of music, artistry and education. As a singer songwriter and musician, Harriette recently launched her fourth album on her own record label. Connect with @harriettehale on Twitter.
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