When I first started to study online marketing and wealthy business people, one of the first things that I learned from them was that their wealth was very often grown by having multiple income streams.
This is one of the biggest differences between a wealthy successful person and the average Joe & Jo Bloggs on the street. When a person has a job which pays them for their time in the form of a wage they have only one income stream.
If that person has a second job or creates something which earns them some more money then they have a second income stream. What wealthy people generally try and do is to create as many income streams as possible and there are good reasons for this.
Not only does it increase your monthly income but it is also actsas a safety valve in case anything should go wrong with one or two of their other income streams. If a person working one job for an employer was told that they were to lose their job because work had slowed down or the company could no longer afford to keep them on then they would be up the proverbial ‘shit creek without a paddle’.
Their income would come to a crashing halt meaning that they would probably not be able to pay their rent or their mortgage and many if not all of their utility bills.This is a very scary position to be in, I have been in that position myself and it is no fun I can tell you.
There are many different styles of multiple income streams, some people own different business in different fields such as a cleaning company, a building contractors company and a haulage company. (This is an example)
Take Richard Branson for example, at one point he had Virgin Records and Virgin Airways, two completely different businesses in completely different industries. He sold Virgin Records but he now runs Virgin Airways, Virgin Trains, Virgin TV and Broadband, as well as many others.
He even once had a ‘pop’ at the soft drinks market selling Virgin Cola trying to take on rivals Coke and Pepsi. I don’t think that one was that successful, but it didn’t matter as he was still earning from his other businesses and so he did not hit rock bottom.
There are those who have multiple income streams in the same industry coming from different products such as laptops, mobile phones, tablets and other technology. Some may not think of them as multiple income streams but they are, if a tablet sells brilliantly one day but then suddenly stops selling, the company will lose profits but it will still keep earning thanks to the other products they sell.
You and I may not be able to join such big and expensive markets like aviation and computer technology and we may not have the funds or interest to start up several ‘real world’ businesses like cleaning companies and building contractors but there are other styles of multiple income streams we can build.
I love the ‘creative’ world, the creative world can create many multiple income streams especially now that we live in the digital age. But even before the internet became part of everyone’s daily life the creative world has created millions for people who have been creative.
I will use Stephen King, J.K Rowling, The Beatles and one of my favourite bands of all time Orbital as examples.
Stephen King has written many great books, many of which have been turned into films and TV shows. Each one of his books is a separate income stream. They can generate money for years to come.
Yes they will have a peak when they are first released and end up in the bestsellers charts as will the songs by pop artists like the Beatles and Orbital but books were often reprinted and re-released meaning that they could be bought by new readers years later.
J.K. Rowling is another author who has written several books as part of the Harry Potter series which have also been turned into big box office films. There is also a lot of merchandise with the Harry Potter franchise.
I cannot say whether she gets a percentage of sales from the DVD sales, merchandise sales or box office ticket sales for the films or if she gets an annual license fee for the rights to use the names and brands but what I do know is that she has earned a lot of money from those different products.
Each book is an income stream, each DVD is an income stream as are the merchandise products which are sold. She also writes other books in other genres under a pen name which yet again is another income stream.
The Beatles are a band that have not performed together since the early seventies and will never perform again due to two of them sadly not being with us anymore yet they still generate sales from their songs and albums.
I am not sure who gets the money though as Michael Jackson bought the rights to the Beatles back catalogue but Paul McCartney still has numerous albums and songs that still sell today.
Orbital are a UK based techno band that were performing and recording before the internet was readily available as it is today. They generated sales from singles and albums as well as doing gigs just like the Beatles did.
They also generated money from merchandise like T-shirt sales and DVDs (I have had both over the years). They even did live recordings of their Twentieth Anniversary gigs which they sold on a memory stick at the end of those gigs creating a unique income stream.
I bought the recording of the Sheffield gig which I was fortunate to have gone to.
What I want you to think about is that before the digital age, books, singles, albums and films needed to be republished and made for them to be restocked in shops and sold. Today however, it is a different game altogether. With the invention of digital music files and digital eBooks we can buy these products anytime we want from a multitude of stores online.
This has given birth to many online entrepreneurs that you won’t know about who generate a fantastic living by creating many income streams such as books, music and clothing that they can sell online from various stores. Each track, book or T-Shirt is an individual income stream.
Let’s think about T-Shirts, if you are good at design or can pay someone to create unique and individual designs then you could sell T-Shirts online using all of the social media platforms and you own website via companies like SunFrogShirts.com without ever having to do any of the printing, packing and posting.
Every T-shirt that you design is essentially a new income stream. Now I am not going to say that everyone is going to be able to design 20 unique T-shirts and then sell 3 or 4 of each design each day but some people do.
As for Stephen King and J.K Rowling, they were introduced to the public by passionate and well funded book publishing companies, you may decide to be a writer and you may not become as popular as those two but you could still make a great living just as Nick Spalding has. Read more about Nick’s story click on his name or the image below.
And let’s not forget, J.K. Rowling was turned down by 8-9 publishing houses who didn’t think Harry Potter was any good and didn’t think it would sell. How wrong were they? Incidentally, the Beatles were also famously turned down by a record company saying that they would not amount to anything… yes that is right, the Beatles… the biggest band known to man!
Multiple income streams are the best way to grow your wealth, there are many different ways to create different income streams, some require a lot of money, equipment, contacts and staff whereas others require a laptop, a desk, some spare time and a good idea. Is it time that you considered creating another income stream or two before it’s too late?