A large amount of people who have a lot of wealth are wealthy mainly because they have more than one income stream. Multiple income streams or multiple streams of income, MSIs, whatever you want to call them…
Is the real secret to wealth.
The purpose of multiple streams of income is that a person has money coming in from several different sources where they do not necessarily have to work hard for. So should there ever be any problems, they’ve always got money coming in.
The difference between a wealthy person and an average person, is that the average person has a day job. They go to work and get paid for the work they do for the company and the time they spend there.
On average, a person spends between 4 to 8 hours a day at work, depending on whether it’s a part time or full time job.
They are exchanging their precious time for money. They have a job.
There is a saying that the word job, spelled J-O-B, means…
Just Over Broke.
Because if you work a day job, you will never be wealthy, you will always be just over broke.
There are very few jobs in this world where you will earn more money than you will need.
There are some high paying jobs, but on the whole, while working a job for an employer, you’re basically just earning enough money. And if that job was to suddenly end, if you were to become ill, or laid off for some reason, your income would stop. And that is a very scary place to be.
Wealthy people create multiple income streams so that should one income stream dry up, they are still earning money from the other income streams they have. It is a safety net as well as a proven wealth builder.
As an example, a person who owns a lot of property, which they rent out will have income streams coming in from those properties. 50 houses would be 50 different income streams.
Now property isn’t always the best business to get in because there’s always a large outlay at the beginning. And a lot of the rental income will be paying off any loans or mortgages that are taken out to buy the property. But on the whole there’s 50 income streams, which will eventually bring in a lot of money each month once any loans and mortgages are paid off.
So if one house became empty, the other 49 houses will still be bringing in money. If 5 houses became unoccupied, there would still be 45 houses bringing in money and 5 houses which are not. They are multiple income streams.
Think about J.K. Rowling, Stephen King, James Patterson, all these authors, who’ve written books. Those books are always selling. If you think of Roald Dahl, who is no longer with us, his estate is still earning money from his back catalogue of books. Every book becomes an income stream.
So for example, with J.K. Rowling, she has nine Harry Potter books. Those nine Harry Potter books are each selling copies each month. Should one book for some unknown reason not sell any copies in a month, there’s money coming in from the other eight. She has a lot of book sales.
She has published other books too and has roughly 12, possibly 14 books in total. They are different income streams. She has multiple income streams, which have helped her to become a billionaire.
There are many different businesses where you can set up different individual income streams and this is what wealthy people do. They set up a business and once that business is earning money they then move on to the next business. They set up multiple (semi) passive income streams.
I won’t use the phrase passive income because passive income is not necessarily correct.
You have to do the work upfront, and then there is a certain amount of work which will be needed to manage the income stream. So most income streams are semi-passive income.
Unless of course, you take on staff to manage those income streams. This is something else which most wealthy people do, they hire people to run and manage their businesses for them. Then and only then does a business or income stream become a fully passive income stream.
Once an income stream is set up and making money without much maintenance required, the wealthy person will move on to another business/product/income stream, set it up and get it earning then start on another.
It doesn’t need to be a completely new business. It could even just be one business where they have multiple contracts, premises or products. As an example, Bob Proctor became very wealthy cleaning offices. He started out cleaning offices on his own but when new contracts presented themselves, he hired people to do the work for him. He would leverage their time and he would pay them for it. That way he could take on more offices to clean.
When the number of contracts grew he would hire more stuff.
Every member of staff, and every office that his company cleaned became an income stream.
He had his office cleaning businesses in the USA, in Canada and in the UK. There were staff cleaning offices for him while he was back at home in Canada. The money filtered its way up to him, through all those different income streams.
The problem with office cleaning is that there is a large amount of expenditure. You have wages to pay, there are offices and stores to hire or buy, and cleaning equipment to buy.
With J.K. Rowling and Stephen King, for example, they only had to write the book once and then the book was printed. J.K. Rowling, Stephen King, and a lot of other great authors go through publishing houses. The writer writes the book and the publishing house publishes the book. They basically do all the printing, the distribution and the marketing. The writers get paid a commission from the sales of the books. So in many ways it becomes a very passive income for them.
James Patterson, he had a more hands on approach, being in the marketing industry, the publishing company who took on his first book would not run any television advertisement for the book. So he decided to fund it himself and ran a TV advert. This launched his book into the stratosphere and kicked off his first bestseller. Since then, he’s not looked back. He has loads of books out there including many children’s books and each book is an income stream.
Books are great if you are able to sell a lot, otherwise they are not huge income streams. A book can generate just a few pounds. Self-published authors make a lot more as there is no publishing company taking a large cut of the profits.
Compare the selling of one book, which could be a couple of pounds in income with that of rental income. Rent can bring in anything between a few hundred to a few thousand pounds per month per property. But there are larger costs with buying property.
Writing books can be a lot cheaper business to get started with. A book can be published for a few pounds with Amazon, spend a couple of thousand to give it a better chance of selling and you could be earning a lot more than what property can give you for a lot less outgoings.
There are many types of businesses that will give you multiple income streams. One such business is information publishing.
Download your own copy of How To Run A 6 Figure Information Publishing Business From Home for free HERE:
Information publishing is very similar to being an author, you write and publish books, you can also create video tutorials and online courses. However, you are creating information that people need or want. This gives it a higher profit margin.
So for example here at Streetwise Publications, we have created several courses that teach people how to make money in different niches or different businesses. And we can sell them for more than you can buy a book or a DVD on Amazon. Because our products are not about mere enjoyment and titillation. It’s about learning.
For example, we have a product called One Letter From Retirement.
This product is to do with writing sales letters. Sales letters can bring in a lot of money.
For example, one sales letter, which John Harrison wrote in 1989 has since gone on to make £5 million for him and the business. And it was a sales letter, which he wrote in one afternoon.
It’s not actually that hard to write sales letters. Anybody can write that particular style of sales letters. You do not need to be that great at English, you certainly do not need to be an English professor, lecturer or graduate. It just requires a little learning.
But once a person has learned the art of writing sales letters, they can build a portfolio of profitable sales letters generating them millions of pounds.
And so the value of the information in that One Letter From Retirement product is far greater than that of a Harry Potter book because Harry Potter is just an enjoyable fiction book, you can read it over and over again and enjoy the story.
But it won’t make you any money.
Whereas that One Letter From Retirement product has a higher price tag because if you study the information and write a sales letter such as John did in 1989, which goes on to make you £5 million over several years, then it is worth more than the actual ink and paper it’s printed on… making it’s worth far more than any Harry Potter book.
Publishing information books can be a very profitable industry to get into. A very profitable business indeed. And once you’ve created one information product and its accompanying sales letter, you can move on to the next one. And then move on to another one after that.
You build a portfolio of products which you can sell. Once those products are online you create multiple income streams in the same way that J.K. Rowling and James Patterson have created multiple income streams with their books.
Once they’re online and ready to sell, you use advertising to get them out in front of people on a regular basis. You maintain your income streams, making them semi-passive income streams.
Multiple streams of income is the secret tool of most multi-millionaires. Every wealthy business person that you know will have more than one business. They will have multiple sources of income coming in, so should one business dry up, they are still earning money from other sources.
They have freed themselves of the panic and worry most employed wage slaves face regularly.
Should their boiler break down, they have more than enough income to cover it as well as their living costs or if one business fails, there is nothing to fear because they still have money coming in and they are not relying on that one job, that one source of income.
They are not exchanging their time for money. They create systems and automate those systems so that they are constantly bringing in money from other sources without much effort on their part.
So if you need to find other ways to bring in extra income, then you need to begin to build multiple sources of income. It really is the only way.
There are 5 criteria which a person should think about when looking at creating multiple income streams…
- The income stream requires very little upfront or ongoing expenditure unless you are leveraging money itself.
- It doesn’t require too much upfront training and learning.
- It requires very little work once the initial work is complete.
- It needs to be automated and requires very little of your time after the income stream is established.
- The returns are the highest possible.
Make it easy on yourself. You want to find a way to build a profitable income stream as fast as possible, with as little outlay and ongoing work as possible.
Think of those 5 things when building an income stream and you shouldn’t go wrong.