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Diversifying your home business can create multiple income streams.
It’s not only a good idea, it’s essential for your survival as an entrepreneur.
Why Diversify?
Many Americans were raised with the idea of “becoming something.” Doctor, lawyer, teacher, nurse, have all been top choices for a long time.
In the U.S., commonly you are what you do. While cultural heritage is important, that which we choose to do in our lives often becomes central
to how people see us and to a large extent, how we see ourselves.
My older brother is a prime example of singular focus. From the time he was a little boy, he wanted to be an astronomer. He has always been looking up. Many years and lots of study later, PhD in hand, he fulfilled
his dream. He has happily worked as an astronomer
for nearly three decades.
While he has other interests, my brother has maintained one primary source of income and one identity in the working world.
I’m not knocking it. It has worked for him. And it has worked for a lot of us, for a very long time. But times have changed. When you become an entrepreneur, in many ways you need to think outside the box. While you will have a primary niche for your home business,
you will also do well to find additional sources of revenue.
Ones that are complimentary to what you offer and help you create multiple income streams. Why? Things move fast in today’s world. Very fast. Think of all the changes you have already seen in your lifetime. The twenty-first century will blow the lid off all that. It’s best to be prepared. Diversifying your business and creating those multiple income streams primarily gives you two things: 1. Several sources of revenue. Hence, higher income.
2. A fail-safe business. If one source collapses, you have backup.
Diversify and survive. Diversify and thrive. That’s the bottom line.
Lets just say it's another way of looking up at the stars.
This page is intended to offer an overview of three ways you can create multiple income streams for yourself and your business:• Affiliates
• Your Own Products
• Joint Ventures These are the big three, in the most likely order that a new entrepreneur would proceed. Lets take a look at each in turn.
Affiliate Sales
Affiliate marketing goes on all over the web. First pioneered by Amazon.com, this is a relatively easy way for the internet entrepreneur to bring in some extra cash. Sometimes a lot
of extra cash.
Many companies offer affiliate programs as a means of advertising their products to consumers. After joining a company's affiliate program, you place a description
of their product or service on your website, along with a link to the company website. When someone clicks on that link, and then purchases the product, a commission is paid to you. As multiple income streams go, this is easy peasy. You have probably purchased products online through affiliates, and may not have even realized it. The process for the consumer is fairly easy and seamless. As an internet entrepreneur, you will be using various products yourself to support your online business. Each time you try a new product, if it works well for you, decide if you would feel good about recommending this item
or service to others. If so, check out the company to see if they offer an affiliate program. There is no cost to you to participate. The commission and agreements for affiliate programs vary from company to company. Commissions range from very small to as high as 50% of the market price. Be sure and read through the agreement, and get a handle on how and when commissions are paid. Affiliate marketing can be a fast and easy way to begin to build multiple income streams.
Create Your Own Products
Creating your own products lends credibility to your business. Before your eyes glaze over with thoughts of assembly lines and rows
and rows of bottles and jars, let me clarify what I mean by “product.” I’m referring to what could be known as an “e-product.” In other words, anything that could easily be created with software and your computer,
marketed and delivered via the internet. Remember that the World Wide Web is the Information Highway. Products that are fairly easy to create, and also in big demand,
are information products. These products are excellent choices
for the internet entrepreneur who is looking for ways to create those multiple income streams. Lets look at three varieties. Ebook
This is a very popular product, with both marketers and consumers.
It is amazing how much we know, that someone else wants to learn. You do not need to be a trained writer to create an ebook. These little books are written in everyday language. Add a few graphics and a nice cover and you're good to go. Always include a link to your website in the book itself. Graphics and even ebook covers are readily available, as are instructions on how to create an ebook!
Ebooks are delivered as PDF (portable document format) files, so they can be opened and read on any computer.
PDFs can be read by Adobe Acrobat Reader, available as a free download. As an advertising tool, you may want to offer a free ebook. Use a double opt-in request for the download.
You avoid spam, and now have that person on your email subscriber list. If they like what they read, they’ll be back to purchase that longer ebook you have for sale. Webinar
Simply put, this is a web-based seminar. There are service providers on the internet who host webinars. Once you have created the content, you sign up for this service and schedule your webinar. Many webinars are created as powerpoint slideshows. Through the webinar service provider, the viewer is able to see the computer screen
of the host. Webinars are interactive, many using the computer for visuals and the telephone for dialog. In some cases the telephone option is not available, although participants are able to type in their questions and receive a real time answer. And guess what? Once you’ve created that webinar and hosted it, you can take the very same material, graphics and all, and create an ebook version. This is known as repackaging content and is an excellent use of your time and resources. As with an ebook, you may want to offer a free webinar as an enticement for someone to sign up for your longer version. Podcast
If what you offer works well in an audio version, then a podcast might be just the ticket. For example, hypnotic trance journeys are often offered as downloadable podcasts. Just don’t listen while driving! Depending on the quality needs of the project, podcasts do require some simple audio recording equipment. This could be the microphone that came with your computer. There are also very inexpensive microphones available. Once recorded, you will have an mp3 file. You can create a playable version or a downloadable version using Audio Acrobat, and upload that to your website. Again, use a double opt-in request for the email address of the person downloading your podcast.
As you work to build those multiple income streams, you really cannot go wrong with an information product.They are in high demand and easy and inexpensive to create. People searching the internet are often looking for information. Be the first to provide it. Write about what you know, related to your business. Offer it in any or all of the three formats above. Start with some simple free versions and build from there.
Joint Ventures
When planning to diversify, sometimes the possibility of a partnership emerges as a powerful way of expanding your multiple income streams. Joint ventures are formed by two parties forming a separate business entity. Some internet entrepreneurs form an LLC (Limited Liability Corporation) when entering into a partnership. Always check with an attorney when joining forces with another business owner. Both the purpose and the advantages to joint ventures will vary.
You may want to:
• Team up with another entrepreneur for a specific project.
• Form a partnership
to expand your current business.
• Create a second business with a partner.
This is something that you may want to consider as your business blossoms. Through the course of doing business you will develop relationships with others of like mind.
Look for opportunities to expand and grow your business.
This is intended only as an overview of ways of creating multiple income streams. There are no doubt others. Put on your thinking cap, be creative and have fun!
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