Do only have a single goose laying you eggs? A treacherous path lies ahead for those who continue to rely on a single source of income. Let me convince you to change your ways…
What are single sources of income?
Single sources of income are just that, they come from a single source. For example, if you owned a service station and worked there full time, you’d have a single source of income even though it’s derived from many customers. If something dreadful were to happen to the service station, it’s gone.
The majority of the population only has a single source of income – their job. Lose their job, lose their income. What a freakishly scary situation to be in. If you’re in that position now, be glad you’re taking the steps to rectify it by reading this.
For the active website investors amongst us, if you are relying on a single website for all your revenue, I truly hope it’s not through a single source. For example only organic traffic or a single Facebook page.
What would happen if the traffic source were to disappear overnight? Google penalty? Facebook page shut down? Twitter account hacked? And don’t bloody say “It’ll never happen to me, though, Mike”. That’s what everyone says…until it does.
What about your monetization method? Does a single manufacturer supply all your products? Are you only running a single CPA offer? Do all your affiliate links point to the same company? You better start diversifying your monetization methods.
Take a look at this guy, this guy, this guy, and this guy. Amazon Accounts all banned overnight, with little to no explanation. What would you do if you were in their situation? Do you have a backup plan? Diversify.
Not only the source of traffic but if you have multiple sites, try and host them on different servers, even different domain registrars. What would happen to your earnings if the server all of your sites were hosted, crashed overnight? The company’s turned non-responsive, their social media pages are blowing up with complaints, and their phone lines aren’t connected.
Truly imagine what it would be like to lose your only source of income. Panic sets in. You don’t know panic until your monthly income ceases to exist. Especially if you don’t have an emergency fund in your back pocket.
Anger may soon follow. But is it anger at the reason the source is gone? Or anger at yourself for not diversifying?
You’ll eventually come to accept the situation and find a way to push through.
But why not save yourself the pain and multiply your sources of income today? DO IT. List me one negative to multiple sources of income, I dare you.
Switch over for a second. Imagine yourself in a position with multiple sources of income streaming into your accounts, an unfortunate event unfolds and one suddenly disappears. The range of emotions you’ll feel will be vastly different to if it was your only one.
Get expanding. Get diversifying. One of the fundamentals of any type of investing is reducing your risk by diversifying your assets.
Diversified source of income = less risk, less worry. That’s a bloody fact, mate.
Warren Buffet once said
Never depend on single income. Make investment to create a second source.
Truer words have never been spoken. If not me, listen to the words of the man I used to think was the inventor of the buffet food menu.
So use your single source of income, and either diversify it or create more using it. Those are your options.
The choice is, and always will be, yours.