As a Joint Venture Broker since 1987, I have always made sure I benefit from Multiple Income Streams, even though I like to focus on one or two primarily,and this is quite possible, depending on the amount of time and energy those income streams each demand, and their potential.
THE BIGGEST MISCONCEPTION about multiple income streams is that each one needs to produce enough for you to live on. That’s obviously not true. If you have seven income streams and each one only produces $1,000 per month, that’s a total of $7,000 per month and a lot of security, because diversifying your income and spreading your risk is always a wise thing to do.
My mantra has always been, “No money, no risk,” and if I do commit money to anything, it’s always an amount that I can afford to lose. So when setting up your income streams, here are some questions you should ask:
1. Does it fit my value system? (If not, don’t proceed.)
2. Does it have enough income potential?
3. What is the financial cost?
4. How soon can I make my money back? (If I have to invest any money.)
5. What is the time required to maintain and build this income producer?
6. Does it require recruiting others?
7. How fast can it grow, and what are the limits?
8. Do I need to attend any meetings or travel to do this?
9. How will I be paid?
10. How passive / residual is the income? Do have to continually recruit new people in order to make money, or will it naturally leverage the efforts and resources and money of others? (If it is dependent on others recruiting at a high entry level cost, beware: most people are poor recruiters unless the entry barrier is very low.)
These are the criteria I use.
Passive or residual income always requires some ongoing work / attention, so be aware of that. And if the income is based on individuals paying you ongoing commissions for income generated just because you have an agreement or contract with them, know that many of them will stop paying you after a while for no good reason. So look for automated, proven, existing systems that you just feed. Setting up your own seldom works in the medium / long term.
Leverage and collaboration through multiple diverse income producing systems is what most millionaires use – with an average of seven different income streams. And when one ceases to be beneficial or the ROI is no longer feasible, they simply replace it without getting hysterical and wringing their hands. Objectivity and balance is important in business.
Robin Elliott LeverageAdvantage.com