Tag Archives: Return On Investment

Multiple Income Streams – How The Rich Get Richer

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.

richard branson

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.

authors and artists

I will use Stephen King, J.K Rowling, The Beatles and one of my favourite bands of all time Orbital as examples.

stephen king

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.

jk rowling

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

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

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.

orbital live in sheffield 2009 wristband

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.

tshirts

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.

building a profitable business using amazon and google

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?

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The Return On Investment Principle: Are You Getting It Wrong?

There are many ways to look at a business and the most talked about is the principle of Return On Investment better known as the ROI.

The ROI is a measure of what a business gives back to you after you have invested into it. This is often a very important figure but it is also open to a lot of different interpretation. For example, Investment is often seen as a monetary investment which is a very important factor when running a business but it is not the only investment people can give to a business.

Time is another major investment which is also very important and something that many people forget about.

The idea of ‘Return’ is also open to interpretation, as many people see money as the only real return when they try to figure out the ROI and for most people this is true. In fact for everyone it is true but it is not the only ‘Return’ which is important. Again time or as many business people prefer to call it ‘time freedom’ is a very important ‘Return’ from their business.

The return for some is not in a monetary value or a value measured in time, at least not yet, the return for them is measured as a form of education. The return is the new set of skills they have developed or information they now possess which further down the line could generate them more money or free up time.

These factors combined can make a far better return but it doesn’t stop there, sometimes measuring the ROI is not always straightforward, the ideal results or ‘Return’ will not be seen today, or next week or may not be seen for quite some time.

For example I recently heard about a guy who spent around £30,000 investing in a franchise where he went around the country writing people’s wills for them. He offered a service that ensured his clients affairs and estates were properly dealt with when they die so that there are very few issues for their loved ones.

He is expected to make roughly £12,000 a year which means he will not see his investment paid back until he had worked at least two and a half years.

The return is not always determined on the amount of money that you have invested, what you do is a HUGE factor. Obviously, the £30,000 that was invested in the will writing business is a huge investment and it needs to have some return but that money itself will not bring back any returns as it only bought the franchise name and tools. It is the actually doing the work which will bring the money in.

So if the guy worked 40 hours a week and wrote 20 wills it would bring in ‘X’ amount per week but if he worked 60 hours and wrote 25 wills then it would bring in more money. If he only wrote 5 wills a week then he would earn less meaning that it would take a lot longer to earn back the £30,000 he invested.

Money can be ‘seen’ to have a direct return if it is used in the form of online CPC adverts as seen on Facebook.

People have ran a series of ads sending people to websites where they were either selling something, promoting a product or just relying on 3rd party advertising click revenue.

For every pound or dollar these advertisers spend they would generate two or more back and they would set out to improve the ROI for every pound/dollar they would spend.

Online businesses monitor everything they do or spend to get a complete ROI, in this article  Using SunFrogShirts To Generate Extra Revenue From Your Website I show you how to generate money promoting T-Shirts in posts and that it only takes a few minutes to do. The return on TIME investment can be huge especially if a post does well.

The ROI can be measured in many ways and I have already touched upon the fact that the education and skills you get from something is a return which has dividends later on in life. Over the years I have personally paid out a couple of thousand pounds for DVD courses and access to several online membership courses.

the digital academy online course 3

Inside The Digital Academy

the digital academy

For the first few years there were no monetary or time returns that I can say were beneficial and at times it caused some heated discussions with my better half but now, six years after I started I am now in an excellent position.

The list of the skills and ways I know how to make money online include…

  • I can work from home and from most places around the world,
  • I know how to create websites,
  • I know how to write articles and eBooks,
  • I know how to publish eBooks on Amazon Kindle, Free-ebooks.net and others
  • I know how to create YouTube accounts
  • I know how to create videos
  • I know how to create and use social media platforms
  • I know how to promote affiliate products like T-Shirts
  • I know how to build squeeze pages and op-tin boxes
  • I know how to run email newsletters
  • I know how to run membership sites
  • I know how to generate money from Google AdSense
  • I know how to run CPC & CPM adverts on Facebook and Google AdWords
  • I know rudimentary SEO practices
  • I know how to manage overseas workers

Not bad for a guy who spent twenty or so years working as a carpenter and joiner from the age of sixteen. I am sure there are many other things that I have missed off that list but it isn’t until now that I appreciate what the returns are from those initial investments of those thousands of pounds and the time I spent at weekends and evenings learning those new skills.

Even though it seemed costly, one course was costing me roughly £69 a month, I kept at it because I knew…

  1. I was learning a whole lot of new skills which I could take anywhere and change my life.
  2. I was ‘wasting’ more than £70 a month on food and drink using coffee shops, bars and restaurants including take away food.

Certainly none of the food and drink that I was buying was going to benefit my life or change it so if I was willing to spend money on things which basically were a waste then I could afford to keep investing in my future and education. I also decided to cut down on a few ‘nights out’ and ‘take away nights in’ to save some money.

beer and pizza

After all, if I wanted to change my life situation then I needed to do something and investing time and money into learning WAS THE THING I needed to do and spending on ‘non essential treats’ was not changing my life but keeping me stuck in the life I wanted to escape.

I would most certainly say that investing that time and money in myself has paid off now and that the return is a better life and a complete new skill set that I can take anywhere.

So when you are starting something new and you want to look at the ROI remember that it is not always about what you get back that same day or that it is solely reliant on the monetary investment, there is so much more to consider.

The one thing I think people need to consider is that ROI is a meaningless measurement if you invest money but do very little work.

Many people invest money on programmes, do very little then give up saying that the method ‘does not work’ or that they were ‘taught wrong’ when in fact their lack of focused constant action is to blame.

Actually doing work and doing that work constantly over a period of time is the most valuable investment a business needs. If one man can invest only time and no money but works hard for weeks at a project he can make it work whereas another man who can invest thousands of pounds/dollars into a project but does nothing will have nothing to show and no success.

It would be good if we could write just one eBook and have huge success from it or create just one video that goes crazy on YouTube that brings in a lot of money meaning that the ROI was into the thousands of percent but the truth is that is not always going to happen.

On Free-ebooks.net I see the name Mike Bozart everywhere, he is publishing a lot and I do mean a lot of short stories. It would appear that either he is doing a lot of writing and has 44 books on Free-ebooks.net as we speak.

books by mike bozart

He could be using the site as a traffic generator sending people to bigger and better books for sale on Kindle or to a website where there are audio books or adverts. I am not sure what his business model is, but I can say that it must be working. It is working because he writes plenty of books and the fact that he writes plenty of books shows that it is working, he has not written one or two and then given up.

He has invested quite some time into writing these short stories and they will bring in results, those better results will be dependant on the more time he invests in creating books.

Obviously if you invest a lot of your time and money in a project and the results are pointing to a complete failure then you should stop but it is often very hard to predict a failure or a success until a set time has passed but it is easy to give up too early and prevent that success from happening.

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