Friday, January 29, 2010

Diversifying Income Flow

Sometimes there‘s just so much I can do. I mean I’m just one person, and when a bunch of clients need projects done within the same deadline period, I panic a little. Sure it means more money coming in, but it can also mean less sleep, less time with the family and possibly putting some clients on hold (if they are willing to wait); or passing them along to another freelance writer while I struggle to get caught back up.

Now all of this could also be a sign of not charging enough for your services, but that’s a post for another day…

So what happens if you get really sick, or get in an accident, and can’t work for a few days/weeks? That could really affect your income – especially if you’re the breadwinner. Unless you’re fortunate enough to have a significant savings stashed away to cushion you through life’s unexpected hurdles, you need a plan.

Is Creating Residual Income the Answer?

I’ve talked about my plans to create residual income here, which is just another way of saying “multiple streams of income.” I‘ve done a couple of small things that have brought in some additional income, but mostly this plan’s been placed on the back burner. Clients always come first. Right?

This economy has kicked the idea of security many of us have had for years to the curb. As I’ve said before, I feel much more secure freelancing for several clients as opposed to relying on one job right now, but I don’t think it’s enough. Even if I were lucky enough to get 20 clients a week seeking my services, the truth of the matter is there’s only so much of me to go around.


Which brings me back to the idea of creating other streams of income. I was reading a recent post over at Itty Biz where a guest post written by Dave Navarro discusses how many service providers find themselves stuck on a treadmill of sorts – unable to say no to the money coming in, and unable to find time to relax and enjoy life. Yeah, I’ve been there...

His answer is to create some sort of information product as another income stream. Ebooks, teleseminars, webinars, ecourses and membership sites are all examples of how you might productize an idea. I know of some freelance writers who are doing quite well pulling in an income from their writing services and info products.

It seems to me the key is filling a need within a specific niche. I’m seriously thinking about it. I wouldn’t create products to sell to new or aspiring freelance writers because (1) there are plenty of good writers out there who are already successfully offering products in this area. That means (2) it’s probably an oversaturated niche. I’m happy to go on sharing what I know and learn with you for free.:~) If I create a product, it would be something targeted to my clients that could for sure make their lives easier.

More Ways of Creating Income

Keep in mind info products are only one way to go about creating additional income. There’s also affiliate marketing, creating niche sites and probably a lot more ideas I haven’t mentioned.

Have you considered creating a product to sell? Does your business model involve residual income? If so, please share.


Lori said...

Doing this myself next month. Right now I'm developing a writing business course, which will be up on Craving Balance by March.

It's a way to work on something you love, provide help to those who need it, and get additional revenue and expertise.

Kimberly Ben said...

Oh, Lori, that's great! I especially love that you're partnering with someone to who can help promote the course.

I'm working on an idea for a niche site I'm developing. The challenge for me is always finding time for my personal projects, but I promised to set aside time each evening to work on it. In the end the time spent could prove to be a smart investment.

Devon Ellington said...

ROYALTLIES are much better than simple residual income. The percentages tend to be higher, and, as long as something stays in print or keeps getting viewed, you receive income.

In fact, something I wrote three years ago just earned out its advance and I'm starting to get unexpected royalties.

Kimberly Ben said...

I have to admit that I know very little about royalties and the book publishing industry in general. It sounds like writing a book (that people are interested in reading)is definitely worth the effort beyond any initial earning potential.

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