How Many Cash Streams Are Flowing For You?

[Connor Neal]

Many people have been taught to focus on one business if they are
going to work from home but the developing of many income streams may
be the smarter approach in these uncertain economic times.
Specializing in one area may have it's benefits, but home based
entrepreneurs who derive all of their profit from a single market or
service are dangerously more susceptible to economic fluctuations and
market changes and less profitable in the long term.
Just like a river with different streams supplying the main water flow
so is a business with many streams of income. If one gets dammed up by
the recession or change in the market you still have quite a
sufficient flow from the other sources. Generating multiple streams of
income can have a major impact on your finances. Even an extra income
of $500 each month could go a long way to paying down debt or
increasing your investments.
We often hear about the importance of diversifying our investment
portfolio, but diversifying our income streams is just as important,
particularly in a difficult economy.
But how does a person create multiple streams of income? The main
thing to remember is to promote businesses and services that are hand
in glove complimentary to each other. For instance, do not market two
make up products lines, or 2 telecom services. Your programs should
not overlap or compete.
Another safeguard in this slow economy is to offer programs with
different price points. Someone who does not have the capital for a
$1000 entry fee for a business may jump at your business that is at a
395.00 investment.
Another way to establish almost passive income streams is also to
offer marketing tools to your own group that they will purchase from
you as well as help to develop their business. An example of this is
to offer a good auto responder, or website creation tool that has an
affiliate program that you belong to. Once your group begins to grow
this can be a tidy supplemental check for you.
So the key is to "monetize" your tools and support services. Always
ask if there is an affiliate program to anything you will promote. Do
not leave cash on the table for someone else to pocket. A home-based
business person joined many affiliate programs offered by retailers
and earned cash by incorporating them into her heavily trafficked web
site.
Another often ignored income stream is selling banner advertising.
Your website can be a source of income for you from 3rd party
advertisers similar to a newspaper selling ad space. You do not want
your website so clouded with other offers that your customer gets side
tracked and forgets why they are there in the first place. The idea is
balancing these other ways of earning you money without detracting
from the lucrative income stream you already have.
As these examples show, multiple streams of income can be derived in a
number of ways if you think creatively. The key is to look for ways
that complement your existing business without clouding your marketing
identity. If you sell travel you could also sell an ebook on best
places to vacation with children, or if you sell weight loss products
you could also sell make up.
The possibilities for establishing multiple streams of income are
endless. But you must always remember that the key to successfully
managing multiple streams of income is not to lose focus on your
primary revenue generating business. The ideal extra income source
will continue to generate cash even when you're not working at it. The
idea is to build something that can eventually function without you so
you can passively earn.
Once you have your multiple income streams chosen and learn how to
maintain this balance, your cash will flow and keep your home-based
business steadily producing through all kinds of fluctuations.