The ‘Multiple Streams of Income’ mistake
I’m sure you have heard people, including me, say that the way to ensure a stable income is to have multiple streams of income all running sending money into your bank account. This idea was first explained by Robert G Allen in his best selling book, ‘Multiple Streams of Income’. When you have multiple streams of income you’re not reliant on one source. If one of your sites is de-listed by Google, for example, you still have several other income sources bringing in money so the impact of losing that site is reduced. On that basis then it is sensible to have as many sources of income as possible because each source you put in place reduces the contribution that each one makes to your entire earnings. So why am I saying that multiple streams of income can be in some way a mistake? Let me explain. What I see all the time is people taking that piece of advice, creating multiple streams, and implementing them in the wrong way. How do they do it wrong? Let’s look at the process for creating a niche income. The first stage in the process is research. We look for possible profitable niches by brainstorming ideas. There are many ways to do this, including checking through the magazine rack for hobby ideas that can provide niches, research on Amazon for popular book/product titles, check out Google trends, Ebay pulse, prompt AI for ideas - there are lots of ways that I don’t have space to go into here. If you would like more help in this area post me a comment below and we can start a discussion about it. As we do our research we compile a list of interesting niche topics in a notepad file or similar ready to start creating our niche sites. What lots of people do then is pick several of these topics, generate a bunch of keywords for each using the Google keyword tool or AI now and start creating a niche site for each one. More often than not these days that means putting together a WordPress site, adding all of the plugins needed, sorting out the right widgets, optimising the site for the search engines possibly using all-in-one-seo or Yoast, writing or getting written some content for them, adding an email capture form etc.