When you think about Building Multiple Streams of Income, you need to think about the different ways to make money. This can be a great opportunity to think about different niches and how to monetize them.
You will need to learn and start building up income streams. Focus on one income stream and then build one up before moving to another one. Increasingly, think about how you can replace yourself and make them more passive income streams.
Most millionaires have at least 7 income streams. This is a great way to diversify your income and try hitting on a couple of them to be extremely profitable. The greater you can diversify your income streams, the better you can protect yourself in times of economic downturn.
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Why Bother With Building Multiple Income Streams?
Multiple Income Streams protects your revenue. If something happens, you have another revenue source. By thinking in terms of multiple income streams, it forces you to think about building passive income streams. A side benefit is that it gives you greater chances for one of your businesses to do very well.
It pushes you to build out systems so you have time to work on other business ventures and investment opportunities.
The CashFlow Quadrant originated from Robert Kiyosaki. He talked about it in his famous book Rich Dad Poor Dad. It really helps you think about business with a greater mindset.
If you think about your own situation, most people are within the Employee or Self-Employed Category. It’s okay, if you work your way to CEO of a company or you make a lot of sales in your business as a Self-Employed Individual. In all of these, you still have a job.
You need to look into building a business. You want the business running without you. Essentially, you want to create a system.
Usually savvy people will look into getting some kind of investment. People that have some financial sense they will be in the Investor category. A lot of investors invest either in real estate or in paper investments.
Earned Income
For most people, they only have one source of income. It’s usually their job. This can be as an employee or as a self-employed individual. In either case, you exchange your time for money.
- Full-Time Job
- Part-Time Work
- Side Gig
If you have work, look into using your skills or passions into another business.
Business Income
Business Income is one of the main ways that people become very wealthy. Think about how you can leverage systems so you can profit.
- Ecommerce Store
- Digital Products
- Physical Products
- Service Oriented Business
- Local Business
- Publishing: Ad Revenue
- Affiliate Marketing
- Royalty and Licensing Income
Read: Ultimate 50 Business Niches You Can Make A Profit
Real Estate: Rental Income
The way that most people gain wealth is either through a successful business or buying real estate property. Investing in real estate as multiple benefits. There are tax benefits, rental income, and appreciation.
- Single Family Homes
- Multi-Families
- Apartments
- Commercial Property: Warehouses, Office Buildings, Restaurants, etc.
You can buy rentals. It’s a good way to rent out your properties for cash flow. This is a good way to get revenue for years.
Subcategories Related to Real Estate
- Real Estate: Appreciation
- Real Estate: Owner Financing
- Land Investing
Real estate has a lot of opportunities to gain wealth. Unless you are purely buying houses as rentals, you are engaging in speculative investing for appreciation or involved with real estate as a business.
Read: Land Investing: Land Flipping 101
Read: Is Real Estate Investing High or Low Risk
Investor: Interest Income
When more people think about investing, they are thinking about real estate investing or paper assets like stocks. Investing is a great way to have your money working for you.
- Stocks
- Dividends
- Index Funds
- Mutual Funds
- Bonds
The benefit of investments is that it’s a purely passive income stream. You don’t really have to do anything with it once you purchase your paper investment.
Focus on Building Businesses and then Getting Investments
Work on building businesses. This is where the wealthiest people operate. Initially, you will be self-employed. You will be working for yourself to make enough sales and build out your business.
Overtime, you will want to create the systems. These systems should result in increasing your sales. You want a way to consistently generate revenue.
You will want to continually increase the quality of your product or service. It’s important to build a business that lasts. Unless your business is improving, competitors will come and take your spot.
The benefit is that you will be able to leverage the time and resources of other people. As you get bigger, you will want to replace yourself in the business.
Reinvest into your business and then look for investments. My favorite is building out a rental portfolio. This is a good way to maintain your wealth and create multiple streams of income. If you prefer paper assets, it is at this time you can look into these types of investments.
My wife was able to quit her job by investing in land. We basically bought vacant land inexpensively and flipped it for cash or owner financing. The quick cash deals were nice pay days. The owner finance deals brought in passive income for us.
Read: Ultimate Guide To Investing In Land
Tax Benefits for Business Owners and Investors
Do you ever hear the statement, “The Rich Keep Getting Richer and the Poor Keep Getting Poorer?” No one is purposely trying to make the poor poorer. It’s simply that the rich have a mindset to become wealthy and systems in place to make this happen.
The tax system is set up to help people with wealth. In general, the government uses taxes to help stir up the economy and encourage specific types of behaviors.
Rich people have a tax system that benefits people that own homes and businesses. Generally, if you help people provide jobs or housing, the government will give you tax benefits.
This has to do with the fact that the government can’t force businesses or individuals to do anything. They can only encourage the behaviors through the tax system.
Building Your First Business
Do You Already Have a Business?
If you are self-employed, you already have a business. You need to look at working on your systems. Essentially, you want to work yourself out of a job. If you are continuously working in your job, you will never get out of your job.
Don’t work in your business, but on your business. If you’ve come to the place that you can start building out another income stream, do it.
Are You Working a Job?
See if you can leverage the skills you’ve learned at your job into a business. If this isn’t the case, or you simply hate your job look at getting into something else.
There are so many different niches that you can be a part of. You will want to intersect your passions with something that is profitable. If you are able to do this, you can become very wealthy.
Read: 200 Different Niches You Can Build A Business Around
Building Different Income Streams
Create an Online Course
One of the easiest ways to build a different income stream is to teach other people about your business.
If you’ve found some success with your business, you can create an online course. There are different platforms that you can put your online course.
This only requires your knowledge. Since you’ve built up your business, you can draw upon those experiences to start selling your course.
Read: How to Develop an Online Course
Making Money By Selling Shovels to the Gold Digger
There was a time when people all around the world went digging for gold. There were thousands of people that looked to strike rich.
In this industry, other physical and service oriented businesses grew. Restaurants, buckets, shovels, and housing became important to these gold diggers.
Look at selling services and products to people that are looking to achieve something. If you help people in your niche, you can make a lot of money.
Create Services and Products related to Your Business
There are people looking to be involved in your business niche. An online course can be the thing that spurs on other products and services related to your niche.
If you think about these services and products, you can make them better. This can involve coaching, a live event, software, books, membership, and side related businesses.
Examples of Creating Services and Products Related to Your Business:
My wife and I are heavily involved in the land business. We buy and sell rural vacant land. We buy it for super cheap and then sell it for wholesale.
- There are people that sell the course for thousands of dollars. A company offers live events in addition to an online course.
- Another company offers mailing services and data services. They charge a monthly fee for these services that hundreds of land investors use.
- Another company offers website design services. They use platforms like ClickFunnels and on WordPress.
- Other companies offers software for owner financing deals and CRM management software.
- There are companies that help with research and advertise your land for sale. This can be on Facebook, Craigslist, and land listing websites.
Likewise, you can create products and services that your niche can use. They need and want products and services that will get them to their goals.
Publishing is One Of The Best Business Models For Building Multiple Streams of Income
The best business model is publishing. Specifically, I recommend looking at YouTube, Blogging, and Podcasting.
The reason for this is traffic! If you don’t have traffic, you don’t have a business. If you focus on getting traffic for your business, you will be able to leverage your traffic for money.
Building a Business Around Getting Viewers or Followers:
Publishing allows you to get followers or viewers. These followers and viewer can be re-directed to purchase a product or service.
One of the hardest things for small businesses is having a consistent flow of leads. Leads lead to sales. Without a consistent flow of leads, your business will not last.
Free Traffic for Your Business
Publishing gives you the opportunity to consistently bring in potential buyers. If you have some platform, this is a great way to get free traffic for your business.
If you don’t publish regularly, you will need to pay for your traffic. The problem is that these methods will increasingly become more expensive.
Sell Your Products and Services to Your Viewers and Followers
The benefit of publishing is that you can re-direct your audience to buy a product or service that you have. This can mean huge margins and a profitable business model.
Recommend Other Products or Services for a Commission
Even if you don’t have a product or service, you can recommend a product or service that someone else has. This is a good way to get a commission.
Depending on the commission structure, this can be a one time payment or a recurring revenue stream. You can look directly at specific companies. You can also look at affiliate marketing networks.
Ad Revenue
Ad Revenue is another possibility. YouTube, Blogging, and Podcasts will pay you to let them advertise on your platform. This can lead to thousands of dollars.
When you combine all of these benefits, it makes sense to start with publishing and slowly building up your business.
Building Your Second Business
Look at building up one of your already existing revenue streams. You can look at bulking an income stream and making it a bigger part of your business.
You can look at starting a new business venture in another niche. This might require investment in your money or time.
You can also start publishing content on another platform. You can look at YouTube, Blogging, and Podcasts. There are platforms on social media that you can start building a following.
Building Other Income Streams From Your Second Business
Think about what ways to increase your audience and offer different products and services.
Look at offering physical and digital products. Maybe you can offer software or another course related to your niche.
If you enjoy talking to your followers, you can look at offering consulting services. This can be a one time payment or as a retainer.
Read: How to Start a Consulting Business
Each of these developments is a great way to build and strengthen different income streams.
Repeat the Process
Frankly, you don’t need to keep repeating the process unless you want to. You should have different businesses at this stage.
You can look at strengthening those different income streams. You can look at strengthening your relationships with your followers.
Using Your Business To Buy Rental Property
One of the best things you can do to with your money is to buy rental property. It’s a type of investment that will diversify your income and something you can pass on.
There are a lot of benefits for having real estate. You can get tax benefits for depreciation, potential appreciation, and monthly revenue for renting out your property. It’s possible to sell you land and reinvest it into a bigger property.
Using Your Business To Buy Paper Investments
I personally believe that real estate investments are better than paper investments. A real estate investment will continuously bring in cash flow.
For some people, paper investments are more attractive. They don’t require as much oversight especially if you are holding it for the long term.
Frequently Asked Questions:
Should I start with selling a product or start publishing?
It’s possible to start with a product or service. You will need to pay or work on getting leads in order to sell your product of service. If you want to build something a little bit more sustainable, look at publishing first.
What should be my first income stream?
If you have a job, this is your first income stream. You can leverage it funds you get from your job to build up your business.
Should I create a local or online business?
In general, I would recommend an online business. It gives you the opportunity to work anywhere you want to. You can move and it wouldn’t destroy your business.
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