If you’re looking to get ahead financially and diversify your income there are a lot of options out there. It can be daunting trying to decide which direction to take. Do you invest heavily in a franchising opportunity? Do you try and turn a creative hobby into a business? Do you launch a You Tube channel and hope it gains traction? Or do you start freelancing on the side? Some options include more capital outlay and a much higher level of risk. While others are simpler, less stressful and potentially more lucrative. It’s important to think of the support you will have access to and how many hours you will need to invest to reach your goals.
When it comes to different streams of income, you need to keep an open mind because there are a lot of misconceptions about earning potential. One of my mentors, Tim Sales, recently shared an eye-opening statistic – for every five You Tubers that earn $50,000 annually, there are 350 real estate agents and 750 network marketers who earn the same. As a network marketer, that definitely drives home that I made the right choice. After trying many things in my lifetime, the rewards I have experienced and seen many others experience is the reason I am a huge advocate and ambassador for network marketing.
The global pandemic has shown us just how important it is to have more than one stream of income with people all over Australia, and the world losing their jobs and being forced into looking for new opportunities to survive.
There is a lot of noise out there and often people are overwhelmed with where to start and how to do it. Let’s look at the pros and cons of eight different streams of income to help you make a more informed choice.
You can start earning another stream of income by freelancing ‘on the side’. Once you develop a solid client base, it may develop into a fully-fledged business. I know a lot of writers, photographers, graphic designers, nannies and coaches who love the freedom of freelancing. Many of them started freelancing after the birth of their kids because it allows them to have more flexible working hours and more control over their workload.
If you have a decent amount of capital, buying into a franchise opportunity might seem very appealing. A lot of the heavy lifting is done for you in terms of brand recognition, marketing, products/services, systems and processes. When you launch your own brand, there is no guarantee that you’ll get traction in the market. But if you buy into an already well-loved brand, you’re getting a head start…at a cost. Keep in mind that franchises come with a lot of limitations which may inhibit your ability to grow your business. Read the fine print so you don’t get burned.
Upcycling involves using the materials from old or disposable products to make a different and new product (e.g. using plastic bottles to make art). Refurbishing involves taking an old or broken product and fixing it up for resale (e.g. furniture flipping). If you’re handy and creative, it’s an opportunity to make a modest side income that could develop into a profitable business IF you have the time, patience and ability. You also need to stick to the mantra of ‘buy low, sell high’ to avoid working for $10 an hour.
It’s the great Australian dream to own property and it remains a popular choice for investors. If you choose the right growth area and play the long game, it can certainly pay off. And we all love a tax benefit. On the less positive side, it involves a lot of money and a fair bit of risk. Just ask someone who’s dealt with a dodgy, tenant or a market crash.
Sharing economy or gig economy is about sharing your assets or time with others. You might consider becoming an Uber driver, listing a space on Airbnb, offering to help with odd-jobs on Airtasker or selling unwanted stuff on eBay. There are a lot of sharing economy options out there but for the purpose of this blog let’s focus on Ubering or Airbnbing (if those aren’t words, they are now). Both are fairly easy to get started on but come with a few headaches too.
A lot of people think being a social media influencer is an easy and lucrative way to earn cash but unless you have hundreds of thousands of followers, you’ll probably only earn a modest income which is usually up and down. It also takes a lot of time and effort to do it properly. You need to establish clear influencer agreements that outline your terms and conditions, and provide analytics to companies to prove they’re getting ‘bang for their buck’.
Affiliate marketing or referral marketing is the process of promoting someone’s product or service, usually via an affiliate link, in exchange for commission. When people click on your link and make a purchase, you get paid an agreed percentage. It’s a relatively easy way to start earning passive income online but there are a few drawbacks including the inability to benefit from repeat customers or build ongoing relationships with clients.
Network marketing is a business model that empowers and engages all the people, like you and I, to sell products they love directly to the community. It provides access to world class mentorship and systems which means, like me, you can succeed with no prior business experience. As someone who has built a very successful business through network marketing, I know it is the smartest, simplest and most rewarding way for average people to get ahead financially. You just have to have the right mindset and be willing to put in the work and stay the course. It’s not perfect, but the pros far outweigh the cons with low start-up costs, access to a community and the ability to earn ongoing, residual income. The key is finding a reputable company and products you love. Products you would buy regardless if there was a business attached to it.
If the global pandemic has made you realise just how vital it is to have a diverse income stream, I hope this article helps you make an informed decision about which option to pursue. I hope, like me, you find something that enables you to thrive. Something that gives you financial security, maybe even freedom, and brings you massive fulfilment. You deserve it.
Please head to the network marketing page on my website or read my latest blog that debunks networking marketing myths.
And if you’ve got a story to tell about establishing multiple streams of income, please comment below. I’d love to hear about how you’re building your financial future.
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