In a recent client call, the subject of multiple streams of income and passive revenue came up.
My goal for every business owner is that you have both. After all, having all eggs in one basket is never a sound business strategy and nothing beats opening your email to find your business has generated revenue while you slept.
My client asked about my income streams and how they’re broken out.
As of the time I’m writing this, here’s the breakout:
- Consulting/Advisory = 54%
- Team Services = 27%
- Leveraged/Passive (membership programs, e-books (not all business related!), on demand workshops, etc.) = 19%
There are, of course, several things involved in achieving the above:
- You must have information which people are willing to pay for.
- You must have back-end systems to collect monies, automatically provide the digital product purchased and follow-up with your new clients whether you’re in the office or not.
- You must know how and where to market your PPS (program, product or service) and your business, so people find you and know what you’re offering.
- You have to be able to put it all together seamlessly and profitably.
And the best parts:
- As so many businesses learned in 2020, the above is totally doable for any industry – you simply need the right steps to make it happen consistently.
- Continuity/Membership/Subscription programs allow you to leverage your time and energy while creating predictable cash flow (no more revenue roller coaster!).
- E-books and on demand workshops are, by their very nature, highly profitable once you’ve covered your time in creating them.
- Once you have the systems in place for consistent product sales, you truly have a lifestyle business. Whether you’re on vacation, home-schooling children, making dinner or yes, even sleeping, you’re earning revenue AND profits!
Many business owners focus exclusively on their “high ticket” items, often relegating info products and continuity to the back burner as they live in launch mode.
There’s a place for both in any business – whether you’re selling coaching, widgets, or services.
As you plan for 2021, take 30 minutes to look at your business objectively:
- Do you have TRUE multiple streams of revenue or is all your income in one basket?
- Are all revenue streams/programs/products profitable?
- Are you earning revenue no matter where you are or what you’re doing or only when you’re launching a program?
- At the end of a program, do you enjoy some downtime knowing the revenue will continue to come in or are you scrambling wondering where your next deposit will come from (and when)?
- Is your business paying you or are you putting in all the time, effort and energy without anything coming back?
It’s more important than ever to know what you’re doing in your business, not only today, but next week and next month to create “profitable revenue”.