When we begin our businesses, we often get caught in the cycle of trading time for money, especially when it comes to service-based businesses. In this new series, we’re chatting all about growing your business beyond services so that you can break this cycle and mindset. Today, we’re discussing how you can build diverse revenue streams as an entrepreneur.
Called to Both is brought to you by Joy Michelle, mom of two and multi-passionate entrepreneur who’s on a mission to help others find balance between the worlds of motherhood and business. Called to Both is the podcast for women who have big business ambitions and also want to be intentional and present moms. At Called to Both, we truly don’t believe you have to choose between these two worlds tugging at your heart You can be Called to Both.
Today’s episode is brought to you by my Affiliate Marketing Jumpstart Guide. I’ve developed an affiliate marketing strategy that has brought me freedom in my business and I’m sharing this strategy in my free guide!
Growing Beyond Services: Building Diverse Revenue Streams
When my business was simply service-based and I was trading time for money, I felt trapped. Like many entrepreneurs, I wanted another way to earn an income that didn’t rely on my time. So I build diverse revenue streams to alleviate some of that stress.
What It Means to Diversify Your Income
I think a lot of us are familiar with active income, which refers to money earned through direct, active efforts or services provided by an individual or business. It involves trading time, skills, or expertise for money. The characteristics of active income include:
- Requires active participation or work to earn money.
- Stops flowing when the person stops working or providing services.
- Tends to be predictable and stable as long as the individual continues working.
On the other hand, passive income streams may require significant upfront work or investment, but once established, they can continue generating revenue with relatively little ongoing effort.
Three Reasons to Diversify
Before we dive too far in, let’s talk about why you should diversify your revenue streams.
- Increase your income potential.
- Allows for more confidence in shifts in life and economy.
- Reduces overall risk in changes.
Potential Revenue Streams for Entrepreneurs
There are a few types of potential revenue streams for entrepreneurs outside of active income, including passive income, content monetization, and intellectual property. These three revenue streams include so many options within themselves as well:
- Passive income: Dividends from investments, rental income from real estate, affiliate marketing, digital shop sales, and courses
- Content monetization: Youtube Channel, Monetizing a podcast, ads on blog posts, sponsored collaborations, etc.
- Intellectual property: Licensing, book royalties, music, etc.
In my own business, I’ve really explored and expanded my own diversification of revenue streams. I wanted to find a way to make an income while I took maternity leave or a sabbatical. Here is how I’ve diversified my revenue streams in my own business:
- Affiliate marketing
- Google Adsense
- Sponsorships and brand deals (within the youtube channel, Photoboss Facebook group, and the Called to Both podcast)
- Coaching programs
If you’ve been testing out new revenue streams, but aren’t finding success, I want to meet you where you are. Everyone has a different experience, therefore, it is okay to go at your own pace. There are two major drawbacks to diversifying, which may be impacting your success:
- You are splitting your focus from the things that are actively bringing in money.
- You should be aware of overcomplicating your revenue streams and bookkeeping.
If you’re enjoying the content we’re creating on the podcast and want to connect with others who are called to both, make sure you come join us in the Called to Both Facebook Group!
Mentioned in This Episode:
Connect with Joy:
Coach with Joy: joymichelle.co/coaching
If you decide to use any of the links above and buy through them, I’ll receive a small commission back. All of those affiliate income commissions really add up over time and help generate revenue to help support this podcast.
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