If you have an online business and you’re starting to generate revenue – it’s important to focus on multiple revenue sources.
The reason is that you want to diversify your income source in case something happens. It’s a contingency plan to make sure you’re in a better position to take a hit if something happens.
- Model #1 -Single income $1k/month from Google Adsense
- Model #2 – $1k split in two: $500 from Google Adsense and $500 from an ebook or product
- Model #3 – $1k split in four: $250 from Google Adsense, $250 from consultations, $250 from ebooks, and $250 from services
The issue with Model #1 is that if something happens with Google Adsense – you’re single income stream is gone. You’ll be scrambling to find another revenue stream. In Model #2, if the same scenario happened – you’ll only be out half of your income. Of course, in Model #3, if the same scenario happened – you’re only out $250 to have to replace.
As you can see, it’s much riskier to rely on one source of income rather than multiple sources. Diversity is your friend and will help keep you in a safety net in case something were to happen to one of your income sources.