The word multiple income streams seems to have become one of these new marketing “buzz words”, where some people assume that if they know this word they know a great deal about business (often from people who have never had their own business). I’ve seen it several times recently.
So what does it mean to have multiple income streams?
It is the basic premise of not relying too much on one income, because if something negatively affects that income, you’re screwed! Increasing your sources of income will normally reduce risk.
I think that most people are advocates of having multiple income streams. It’s smart. It’s an intuitive and sensible approach. I suppose it’s derived from the old saying: “don’t put all your eggs in one basket.”
Here’s my problem: Many people trying to start a business immediately focus on multiple income streams.
Here’s how it works in reality: Trying to focus on too many different things means that nothing gets completed. There are open loops everywhere. Several things are started, but none are finished.
This happened to me when I first started (trying) to build an online business. First I looked at affiliate marketing, then CPA (Cost Per Action) then CPL (Cost Per Lead), and a number of other different ways to start a business.
If I could go back now, I’d research different things, choose what I thought was best, and stick to it until completion. At least that way, even if I didn’t make any money, I knew I’d given it my best shot.
So what is my advice? (From experience) Focus on one thing and do it well. Build to completion, and then move on.
Part of my business involves making affiliate websites in niches. What’s the point in buying 20 domains, and only completing five or ten of the sites? There is no point, but it can easily happen. It’s better to buy five domains and do all the necessary work on each site before moving onto the next. Obviously it’s a continual process, but any (affiliate) site needs to be initially set up (adding content and privacy pages, on and off-page SEO etc) if it is going to have any chance of producing revenue in the future.
My advice: Of course everyone aims to have several different income streams, and rightly so. The problem is, if you initially concentrate on having several sources, you’ll continue to have none. Concentrate on the first to begin with. When that is successfully set up, move onto the next.
The people with successful businesses who have multiple income streams know what they are doing. Most of them won’t buy or start a new business until they are satisfied with the growth and progress of their existing business. A good sign of knowing when to move onto the next income stream is deciding what would happen if you stopped working on your current income stream. Would it continue to produce revenue at the same (or a higher) rate? If not, maybe it’s not yet time to move on.
Your turn: What do you think about multiple income streams? What’s your experience with multiple income streams? I’d love to hear from you.
Please note: I’m talking solely about revenue streams in this post, not about diversifying in other aspects of a business. But feel free to talk about other areas if you want 
10 comments
Ryan Critchett@Computer Repair Service, Lehigh Valley Pa
October 11, 2011 at 8:38 pm (UTC 0)
Nice image for the post. Makes sense! There is a lot to be said about this, but ultimately, as you’re saying, (and it’s been my experience) that focus on one income generating thing is the best.
THE THING IS, then, once you’ve mastered that and deliberated made it so that money is coming in from it, and you can manage it without it killing all of your time and happiness, move onto other things, and have them make you money too!
My computer repair company is going to be a “platform support” company of sorts, to free up time and create resources to do other things. Ya know?
DUDE, lots going on, we’ll chat soon. This weekend maybe?
Ryan Critchett@Computer Repair Service, Lehigh Valley Pa recently posted..Thank You – John Thomas Ballow
Robert
October 11, 2011 at 11:22 pm (UTC 0)
Thanks man yeah a nice photo to put on the post lol. Even better when it fits the theme!
Exactly man, glad you align. Spreading focus too much means that several potential income streams remain as NONE in reality.
Yeah I get you that sounds awesome! I know you’re going to be on other stuff when rmctech is fully up and running.
Yeah dude, this weekend sounds good. Busy but always time for you. It’s been far too long.
Speak soon.
Hit me up on Twitter or email and we’ll organise something.
Robert recently posted..Multiple income streams: The reality
Bill Dorman
October 12, 2011 at 1:44 pm (UTC 0)
I think it’s a good idea to try and have at least the opportunity for multiple revenue streams, but you do have to be careful in not paying enough attention to your main revenue source.
In my business of commercial insurance sales, I find the ‘specialists’ (one primary revenue stream) are usually the most successful in terms of revenues. The generalists seem to get too scattered and don’t become great at any one thing .
You make some good points in this post and my closing thought would be is to at least make sure you are really, really good at least with one of your streams.
Bill Dorman recently posted..Do ‘best of’ posts really have value?
Robert
October 12, 2011 at 3:02 pm (UTC 0)
Great input there Bill. That’s what it’s all about. Waiting until you have one solid income stream before moving onto the next.
Although specialisation can be limiting in some ways, in terms of income streams it can be extremely advantageous, as long as the person realises that eventually they’ll have to branch out and start something else (just to spread their risk).
Flip side of the coin, that’s the problem with being too generalist, too much skipping between different stuff can mean that not one solid stream gets created.
Thanks for passing by Bill.
Speak soon
Robert recently posted..Multiple income streams: The reality
Brian Kinkade@Denver MLS
October 14, 2011 at 4:26 pm (UTC 0)
The image is captivating! and I completely agree that we should focus on one thing and do it well. Doing it well is more important but sometimes being only humans we tend to get lured to various streams aiming to earn more.
Robert
October 14, 2011 at 9:38 pm (UTC 0)
Thanks, yeah I like the image!
Focussing on one thing makes it much more probable that we’ll do it well and finish it. Although yes, as humans this can be difficult sometimes. Multiple streams are good when the time is right and we’ve properly established our main ‘stream’.
Robert recently posted..Multiple income streams: The reality
Jk Allen
October 17, 2011 at 7:32 pm (UTC 0)
What I have found is that the most successful people become absolute specialist in what they do. They become “of the best”. Following mastery, they will then move on to another area where they become a master in that area. Fast forward a few years ahead and they have multiple streams of income – but what can’t be seen is the level of focus dedicated to each stream, one thing at a time.
Jk Allen recently posted..Taking Action to Improve the Hustle: One Thing at a Time
Robert
October 17, 2011 at 9:52 pm (UTC 0)
Wow man how do you always say it better than almost anyone else could? lol. You hit the nail on the head. Specialise and become an expert, and move onto something else when you’re at the peak. Rinse and repeat. The most successful people are the most driven AND focussed. But, they know when to move to something else.
Thanks for stopping by.
Speak soon man
Robert recently posted..Multiple income streams: The reality
Ryan
November 8, 2011 at 5:31 am (UTC 0)
Even though I am just starting out, I have found that getting multiple income streams is not easy. It takes a lot of hard work, dedication, research to keywords and niches to pursue. Currently I am working on my foundation, my blog and looking to diverge my attention to a niche site which I have put in a lot of time researching about the topic, how large of an audience it can provide information to.
I like your point of focusing on one thing, because when I first started my internet presence, I had no idea of where to go!
Ryan
The Biz Blogger
November 8, 2011 at 12:52 pm (UTC 0)
That’s right Ryan, it’s not easy. Look at how your blog fits into your overall online strategy. Remember that a blog is NOT a business, so I recommend starting to work on your niche sites as well.
Thanks for stopping by bro, hope to see you again.
Robert
The Biz Blogger recently posted..Seven Essential Marketing Lessons