Is having a job is dangerous to your personal finances? On the news recently, there was an announcement that a company was laying off 250 people soon. Those people have the option of moving to another area for a job if they want it, otherwise, they can start looking for another job now.
Growing up, I hadn’t really thought about having a job as a negative. Everyone was taught to do good in school so you could get a job that would take care of you. It wasn’t until I was much older that I started reading about some of the dangers.
If you have one job, with one income, what happens if something happens to that job? What if something happens and you are no longer able to physically do that job?
Entrepreneurship is an avenue that can help with that but it is not necessarily the only answer. As an entrepreneur, you don’t have one income. You have the potential to have thousands of clients instead. If something happens to one of those clients, it doesn’t affect things quite like having one income. You can look at clients as individual income streams.
There is still the potential that something could happen to you which would prevent you from continuing in your role as the entrepreneur. So what can you do?
Multiple Streams of Income
Multiple streams of income is the alternative. It’s also referred to as passive income.
What is it and how do you do it?
First, it doesn’t mean that you stop doing the work you are currently doing. Keep your job, run your business. It’s all good.
It means starting to think beyond what you are doing day to day. When I worked in corporate America, I had one job and one income. Accidentally, because I had gotten bored, I created a course and began teaching at a Junior College part-time. That doesn’t technically equate to passive income. After all, I had to go to the college and teach each class for a fee. I was spending a lot of my “time” doing that work. A better way might have been to create a course on the subject and sell it online. That way, I could create the course one time, and sell the same course multiple times.
I wrote a book and published it in 2014 called The Little Debt-Free Book. It’s available on Amazon and Kindle. That is actually passive income for me. I wrote it once, published it and now I collect a royalty from each sale. Can I live on it? No way. But it does make a little money.
Building on that idea, what else can I do with that book?
- Create a video based course based on the book
- Create a study that others can teach based on the book
- Offer my services as a speaker at conferences (not quite as passive)
- Create products that go with the book or course
- Create an audio version of the book
Have you ever heard of Dave Ramsey? He teaches personal finance courses too. However, if you search, you can find the following products outside the courses:
- Deluxe Envelope System
- Starter Envelope System
- Board Games
- His & Hers Envelope Systems
- Smart Saver Banks for Kids
- Envelope System Replacement/Refill Sheets
- Cash Envelope System
- Framed motivational Quotes
- Budget Stickers
My sister-in-law is an artist who sells prints of her paintings online. She paints the designs one time and then sells them on products for a royalty. Here is how her products are being delivered;
- Wall Tapestry
- Art Print
- Framed Art Print
- Canvas Print
- iPhone Covers
Other ways her products could be provided would be:
- Pillow cases
- Sticky Notes
- Flash Drives
- Greeting Cards
That doesn’t even cover everything. There are thousands of ways you can provide your products in various formats for people.
Just think about it. With my sister-in-law, she could provide these prints to companies that will do all the work for her. They will take the orders, create the products, ship the products to those who order them. She receives a royalty for each product sold. Even if she only makes 50 cents per product sold, she could make quite a bit. What’s really cool is that currently she has eight different designs. That brings up the next idea.
One product is good, eight products are better. What if you had 100 products out there? Going back to Dave Ramsey. He currently has 88 product for sale on his website. The prices range from $7 – $159. With his reach, I believe he is either publishing the stuff himself or getting a substantial royalty. He also goes to conferences.
Recently, I went to a three-day conference by a well-known speaker. Three days. The cost of the conference was discounted through my work to $149 per person from my office. I honestly don’t know what the regular cost was. For this argument, let’s just say that the cost per person was $149. There were between 600-700 people at the conference. Even if we use 600 as the number of attendees, the total income for the conference was $89,400. There were costs involved with the convention center but they only offered coffee and tea as refreshments. Everyone needed to get their own lunch and there was no breakfast or dinner provided. If you signed up for their basic coaching system during the event for $600 per month for a minimum of one year, they bought dinner. There were 135 people that signed up for the coaching. That’s an additional $972,000 for the year. YIKES!
We were there for three days and the main speaker was there for 75 minutes total. Total!
He flew in that morning, got driven over from the airport which was 30 minutes away, and spoke, and drove back to the airport for a 1pm flight. Wow!
Ok. This guy is very well known in the circles the conference focused on and not everyone gets there overnight but DAMN! No wonder he paid for dinner for those that signed up for coaching.
For $1M over a three-day event, I’d pay for dinner for 135 people. No problem.
Doesn’t that make a whole lot more sense than working one job for one income for 45 years in the hopes that you will have enough to retire?
What can you capitalize on today? What knowledge do you have that you have been doing for years that you could turn into products and services that could bring in a different form of income for you and your family?
If you need help with the purchase or sale of a home, reach out to me for more information about how I can help you get where you want to be.
I’m never too busy for your referrals.
Patrick O’Connor – CHMS, GRI, Realtor®
Ebby Halliday, REALTORS®