Turning One Income Stream Into Multiple Income Streams

August 17, 2019 0 Comments

We hear about athletes, musicians and actors that go broke, but realize that many people that have some success online suffer the same fate.

I remember reading a blog a few years ago. It was called jayknowscash.com, he was a super affiliate. This guy came out of nowhere started blogging and his blog took off. From there he launched a private forum that charge a monthly fee, he launched a spy tool that charged a monthly fee and he launched an affiliate network.

He posted photos of the amazing views from his condo. He posted pictures of his supercars. He posted case 5 and 6 figure case studies on his blog. After sometime passed he made a post about how he trusted the wrong people, he was broke and had to sell his cars and everything he owned. He even posted a picture of his empty condo. Eventually his blog and those three websites he started disappeared.

When the money starts rolling it it can be easy to think it will last forever. Especially if you are in a niche that will always have customers. I killed it in the dating niche for years. I made over a 1 million in revenue promoting CPA and rev share dating offers. Today, those dating offers that converted years ago don’t convert as well.

Those dating offers that paid $5.50 years ago only pay $3 nowadays. Just because a niche will always be in demand doesn’t mean you will always be able to make money in it.

When you first start making money online you have to put a plan in place to keep that money and turn it into more money. Below are some tips for turning your initial online success into massive wealth.

Keep working

Most people hate their jobs. The first thing they do once they make a little money online is quit their job. I suggest you keep working for several reasons.

One income stream is not enough, if you have one blog or just a YouTube channel making you some money you are not in a stable position. If your blog gets hacked or you YouTube channel get removed or demonetized you will have to go crawling back to your old job.

Wait until you have at least five consistent streams of full-time income. So if you need $2,000 to cover all of your expenses, wait until you have at least $2,000 coming in from five different sources before ditching your job.

Have a budget

You have to control your spending, especially when your income increases. It is very easy to start spending more when you start making more. Your have to act like the money does not exist. Focus only on your needs not your wants. Keep your spending where it was before you started making money or lower it if you can, but do not increase it.

You have to focus on stability, consistency and variety first. By that I mean you should have multiple consistent income streams before you decide to spend any money on your wants.

Write down your worst fears

When you taste success online it is easy to get caught up thinking about the life you want to live. You start thinking about the places you want to go and the cars you want to drive. That is a mistake.

Instead you need to think about the type of life you don’t want. Why? Because poor decisions with your money will give you the life you don’t want. Write down your worst fears, is it being poor, working a job you hate for 30 or 40 years, living places you don’t want to live and driving cars you don’t want to drive, not being able to give your kids a good life.

Having these things on your mind can do a lot to keep your spending and investing on the right track.

Learn through reading, audiobooks or Youtube videos

Start reading finance books, real estate books, investment books and personal development books. If you don’t like to read, listen to audiobooks. You could also find some YouTubers and follow them.

Spend a lot of time learning, it will get you further in life than TV, video games and social media will.

Have an investment plan

This is the most important part of taking your initial online success to another level. You have to invest your time and money in the right ventures. Below you will see your many options.

Real Estate– Real estate makes the most millionaires because it provides cashflow as well as appreciation. Many people that make money online want to travel the world. Even as a world traveler you could make real estate investing work by using a property management company.

Stocks– You can make dividends with stocks, but only if you own tons of shares. The appreciation from stock is what can bring you money. You have to be willing to invest long-term to benefit from a 5 or 6 figure gain of your stock portfolio.

YouTube– YouTube is competitive, so if you start a channel, don’t expect it to take off immediately. One thing about YouTube versus the other opportunities on this list is that really requires no money. All you need is time to make videos and upload them.

Once you get a few thousand subscribers you can make money from your channel. Even if you stop uploading, your old videos can still bring you money each month.

Blogging– Much like YouTube blogging is long term and requires time rather than money. If might take months or years for your blog to get some traction, but once it does you have the potential to make 5 or 6 figures each month.

Music Royalties– This website royaltyexchange.com allows you to bid on music royalties from your favorite artists. Obviously, music royalties won’t stay consistent, but if you can acquire royalties from some of the top artists in the world you should get a nice return on investment (ROI) over time.

Ecommerce– You can use Amazon FBA or you can launch your own store. People are making millions via both avenues.

If you want to take this path I suggest learning tons from Youtube, forums, blogs and if you need to do so purchase a good ecommerce course. I know what it is like to be stuck with thousands of inventory that is not selling, I don’t want you to experience the same thing.

I think the 6 options listed about have the highest income potential. However, you have other options like buying a franchise, kindle books, mobile and desktop apps, or you could acquire a business that is already making money.

Weigh the pros and cons for all of your options. Once you decide on one, you have to determine what your financial commitment will be. You also have to map out what type of income you are expecting your new investment to bring in.

I said above you should look for income streams that match or exceed what you need to live on in one month. Don’t waste time on projects that bring in pennies, sometimes those project require the same effort as projects that bring in thousands a month.

Patience and planning is the key. Every failed investment is lost money and wasted time. Every time you lose a chunk of money you are a little closer to going broke, which is not good.

Pay the least amount of taxes possible

To pay the least amount of taxes possible you have to prepay on your business expenses. If you spend a lot of money on online advertising, load up thousands into your advertising accounts before the end of the year.

If you have an online store, load up on inventory and shipping supplies at the end of the year. It is a terrible feeling to have to pay the IRS 5 or 6 figures, especially when your business is new. Increasing your expenses will allow you to reinvest much of your initial earnings back into your business.

Conclusion

Discipline and planning are a common denominator with many of the things on this list. Controlling your appetite to spend and carefully investing it in the right opportunities over time will increase your income and eventually allow you to live a life most people can only dream of living.

Filed in: Goals

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