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.
[BMOI]
Robin Longacre is a qualified home based business expert with over 12 years training and mentoring other like minded entrepreneurs throughout 6 countries. She can be reached at longacrebiz@sbcglobal.net or called at (530) 798-4384.
Her website is [http://www.whoisrobinlongacre.com]
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