The purpose of this article is to go over a few key points that are important if you are serious about adding new sources of income.
This information is an EXTRACT from the content of the Optima Business Archives from 2002. Still relevant today!
IF YOU ARE A BUSINESS OWNER, you need to add new sources of income personally — and also within your business. We have found that most businesses rely on one primary source of revenue, and if you look across your industry, you will find that most businesses within the same industry follow the same pattern.
HOT TIP: Look at the ways other businesses from different industries find new customers and sources of revenue. Ask yourself this question: “How could I apply the same method to my business?” Don’t say to yourself (like most people do) “that will never work for me, my business is different.” You would be surprised at how this one thought, can get in the way of new money-making ideas!
If you keep an open mind, you will discover new ways of marketing, and new sources of income that you had previously never considered before. And here is the best part — most other businesses within your industry won’t be doing it that way! So you will gain an instant advantage.
Here are some additional sources of revenue for you to consider for your business:
- Direct Mail
- Special events for your customers
- Social Media events
- Direct Sales
- Host Beneficiary
- Celebrity endorsements
- Joint Ventures
- Licensing techniques or technologies
If you are thinking, “oh, I have tried some of these and they haven’t worked,” the best question to ask yourself would be this one: “how could I get them to work? is there something that I don’t know, that I need to find out?”
HOT TIP: The key here is in the questions you ask. For example, if you look at a brand new building for your office and say to yourself “I can’t afford it” — then you are right. However, if you ask yourself this question: “how can I afford it?” you will find that your mind will begin to come up with lateral ways of doing it, ways that you couldn’t think of before.
HOT TIP: Study sales and marketing, because you have very little downside risk and virtually unlimited upside potential. Here is an example: It cost you the same amount to run an ad that generates 10 sales, as it does to run an ad that generates 20 sales. If by changing the headline, you can double your sales — then you have doubled your return on investment. What if you could get that same ad to generate 100 sales? Your risk is the same, and yet your upside potential is virtually unlimited!
Once you get an ad that works (by testing one ad versus another, or one headline versus another) you can then repeat it over, and over. Why stop doing something if it is working?
If you have tried advertising before and found that it didn’t pay off for you, perhaps you should consider testing different approaches? Getting an advertising specialist to help you?
How can you apply this same concept to the other sources of income that are listed above?
Train your mind to see opportunity everywhere, by asking the money-making questions…
FOR EMPLOYEES, don’t rush out and quit your job! You have to get some experience first. Experiment with adding first one additional source of income, then a second, then a third. When you finally have enough passive income to cover your current lifestyle — then you are in a position to quit.
What most people do is they get so excited about the freedom of their own business that before they have the basics handled — they cut off their primary source of income! This throws them straight into emergency and makes them very desperate. I don’t know about you, but when I am desperate — I can’t think, and I end up making unwise decisions that are short term.
Build your sources of income, get some experience, then you can decide in your own time — if and when you want to resign from your job. THIS IS TRUE FREEDOM!
HOT TIP: One of the fastest ways to get experience is to find someone who has already mastered what you want to learn, and go study with them, go ask them to teach or mentor you. Most people would be flattered by your interest. Just be careful not to abuse their generosity. Be respectful and appreciative.
Time spent learning from masters — is possibly the best investment you can make.
HOT TIP: Always get clear on what the exchange is — before you begin. If you are asking people to support you to; come up with ideas, write a business plan, help you raise money, do research, mentor you etc. Always agree on what the exchange is — right up front.
HOT TIP: When you agree to an exchange, it doesn’t have to be money. It could be for goods, services, holidays, time, contacts, knowledge etc. Money is only one of many methods of exchange.
HOT TIP: If you exchange a product, or service (in return for what the other person is going to do for you) that costs you say $1,000, and the retail value of the product/service is $5,000 — you could exchange it for say the equivalent of $4,000. The other person gets a product/service valued at $5,000 for $4,000 of their time (or whatever they are giving you) and you are getting their support (or whatever they are giving you) valued at $4,000 for the equivalent cash value of $1,000. If you had paid them cash, it would have cost you $3,000 more!
This is why exchanging money, can often be more expensive than exchanging products or services.
The key here is to think of alternatives and to train yourself to look for opportunities to make money and to save money.
OTHER SOURCES OF INCOME FOR EMPLOYEES: In addition to the sources of additional income listed for business owners, here are some additional ones for you to consider:
- Art (like painting, writing poetry, pottery etc.)
- Royalties from licensing your ideas to others
- Buying and selling a product or service
- Exchanging your time and skill for a profit share, shareholding, revenue participation or a fee
- Commissions on connecting people, or on making sales
- Commissions or a share holding for helping people raise capital
- Licensing patents, and selling the patent
- Acquiring the rights to new technologies, and on-selling them
- Acquiring the rights to new products and finding distributors
- Publishing information, articles, reports or books
- Plus, much more…
HOT TIP: There are only two things to focus on when considering which product, or which potential idea you want to pursue:
- How does this make others more money?
- How does this save others money?
The key idea here is that people will spend money to make money, and they will spend money to save money. Most people never stop and think of what the end result your customer gets from buying from you. Once you can clearly identify what the benefit is, and can explain it simply in terms of saving money, or making money — you will get much faster results.
If you want to get a pay rise, think in terms of how you can make more money, or save more money for your employer. They will then be happy to pay you more money! There is no exchange in simply asking for more money…
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© Goldzone Education. All rights reserved.
Leadership Advocate and Co-Founder of the Goldzone Group. I help leaders to master the new rules of leadership for the new economy. Over the past 30 years, I have visited over 500 cities in 54 countries to explore, learn from, and help many of the world’s leading companies, leaders, and luminaries in the fields of science, technology, health, finance, entrepreneurship, and leadership.