9 Income Streams You Can Build While STILL an Employee

Summary

The speaker shares insights on building multiple income streams to achieve wealth with less risk. They recount personal experiences with nine different income streams, emphasizing the importance of leveraging time, expertise, brand, and money. From starting a service business to investing in real estate, each income stream illustrates a strategic approach to diversifying earnings. The talk also uncovers lesser-known challenges and tips for aspiring entrepreneurs looking to secure their financial future.

Takeaways

• 💼 To become wealthy and reduce risk, it's important to have multiple income streams.
• 🛠 The key to finding additional income streams is leveraging your time and expertise effectively.
• 👨‍💼 Service businesses are a good starting point but may not be sustainable long-term due to the challenges of managing time and scope creep.
• 💵 Your first significant earnings will likely come from your primary job, which is essential for initial capital.
• 🧠 Consulting can be a valuable income stream by monetizing your expertise, but it requires clear boundaries and time management.
• 📊 Serving on boards can be lucrative, especially if you offer significant value, but comes with potential legal risks.
• 🎤 Public speaking can grow into a substantial income stream if you specialize and become recognized, though it requires considerable time and travel.
• 📚 Creating information products can generate passive income by leveraging your knowledge in a specific area.
• 📧 Building a newsletter audience can lead to substantial revenue through sponsorships, but requires consistent content creation.
• 🏠 Investing in properties like Airbnb can provide significant income, though it requires careful management and has risks associated with it.

Q & A

What are the key takeaways from the video about creating multiple income streams?

The video emphasizes the importance of diversifying income sources, leveraging time, expertise, brand or audience, and money to create multiple income streams. It also highlights the value of working smarter, not harder, and provides specific examples of income streams the speaker has developed.

What is the first money lever mentioned in the video, and how did the speaker initially use it?

The first money lever mentioned is 'time'. The speaker initially used it by starting a service business called Selling South, which helped companies enter the Latin American market, and earned about $40,000 each in their first year.

What is the difference between a service business and other income streams according to the speaker?

A service business involves trading time for money, which can be limiting due to scope creep and the challenge of estimating total time needed. Other income streams, like investments or passive income, do not have these limitations and can scale more effectively.

How does the speaker describe the process of leveraging expertise to create income streams?

The speaker describes leveraging expertise by offering consulting services, where they shared their knowledge of Latin American investment businesses. They started with one-off consultations and eventually moved to a flat fee model with a dedicated consultant.

What is the potential downside of sitting on boards as an income stream, as mentioned by the speaker?

Sitting on boards can expose one to risks such as fiduciary charges, which may result in lawsuits if the company makes poor decisions or engages in misconduct.

How did the speaker transition from speaking for free to getting paid for speaking engagements?

The speaker initially spoke for free a few times while still employed. After the fifth speech, they began getting paid, starting with $1,000 to $2,000 per event, and eventually scaling up to $50,000 to $100,000 per event as their expertise and reputation grew.

What is the importance of creating an audience according to the video?

Creating an audience is crucial as it provides the most powerful leverage. It allows for various income streams such as newsletter sponsorships, affiliate sales, and online sponsorships, which can generate significant revenue.

What is the speaker's view on the volatility of Airbnb as an income stream?

The speaker acknowledges the high volatility of Airbnb, noting that there can be significant variance in monthly earnings, which can be stressful. However, it can still be a lucrative income stream when managed properly.

How does the speaker suggest managing the challenges of owning laundromats as an income stream?

The speaker suggests either investing time to manage the laundromats oneself or hiring an operator to handle the day-to-day operations. This approach allows the speaker to focus on the financial aspects of the business.

What is the concept of 'horizontal income' as described by the speaker?

Horizontal income refers to the idea of layering multiple income streams on top of each other, similar to Russian nesting dolls. This can include adding various services or businesses to an existing platform, such as adding vending machines or wash-and-fold services to a laundromat.

What advice does the speaker give for those who are risk-averse and considering multiple income streams?

The speaker advises risk-averse individuals to stack multiple income streams to create a safety net before leaving their job. They emphasize that having a single big idea isn't the only way to achieve financial success and that diversification can be a viable strategy.