How I diversify my income as a content creator
I have talked about income diversification and having multiple income streams before.
It’s critical, especially if you’re a content creator.
Last month my income dropped by over 60%. It was a big shock but, because my income was diversified, the drastic change in income for the month didn’t leave me hanging.
I had the other income streams to keep me afloat.
I haven’t always had multiple streams of income.
For a long time, I was relying on a sole source of income and I got bit big time when the pandemic hit. My freelance income dropped by 80% at that time.
Scary.
I think everyone should have multiple income streams, especially creators.
Here’s how I do it…
How to diversify your income (creator or not)
Ok, so what is income diversification?
It just means that you have multiple income types coming into your bank account, like:
- Your 9-to-5 job income
- Freelancer income
- Dividend income
- Rental property income
- Digital products income
- Royalties
- Etc.
How many income streams do you really need?
You can have as many as you wish.
Millionaires average seven streams of income.
I think 3 to 5 is great to start. If you have 6 or more, you’re golden.
That doesn’t mean you’ll be rich but, it can lead to more income stability.
I diversify my income by…
Having my hands in all the pots.
Ok, not ALL the pots but, many pots.
I like to test and try new things.
Passive income is my absolute favorite!
You put some time and effort into a project upfront to produce passive hands-off income in the future.
I think everyone should have passive income. It’s a no-brainer.
As a content creator, it’s not hard for me to create multiple income streams. Because creators have many ways they can earn money, by nature.
We can make money with:
- Brand deals
- Partnerships
- Affiliate marketing
- Selling physical products
- Selling digital products
- Earning from platform-based creator funds
- Making money from ads
That’s seven streams of income right there, without even dipping your toes into the other ways to diversify your money.
Here’s how I manage it all…
Managing my multiple income streams
How I do it…
- Core income
- Passive income
- Side hustles
My Core Income
First, I start with my core income streams.
For you, that might be your 9-to-5 job or your business.
I begin by creating a stable income from that core income and then move on to the passive income.
Example:
- Working your day job
- Working as a freelance writer
Passive Income
The passive income requires work upfront with recurring monetary rewards in the future, with little to no maintenance needed.
Get this in place so while you’re working on your other income streams, your passive income is running like a well-oiled machine, in the background.
Example:
One way I make passive income is with digital products. Like this micro-website flipping course I sell online:
Side Hustles
Side hustles are those income opportunities on the side. They can be passive in nature, but not always.
Examples include:
- Driving for Doordash
- Working a part-time weekend job in retail
- Running an Etsy store on the side
- Dropshipping with a Shopify store
- Freelancing
It can feel like a lot
Managing your multiple income streams can feel overwhelming.
It doesn’t have to be.
Make it easy on yourself by using tools.
- Keep a planner
- Jot down the details in a spreadsheet
- Write notes
- Use accounting software
In the end, it’s totally worth it.
What do you think about multiple income streams?
How many income streams do you have? How many do you want?
If you want to learn how I created a full-time income from a faceless Tik Tok channel, learn how you can build a profitable faceless Tik Tok channel of your own in my ebook.