Income diversification
Steve’s post on Adsense Earnings highlighted Darren Rowse’s April Earnings Update - Apart from the total take (indicated as a five figure amount less outgoings), the noteworthy element is that it’s distributed across multiple sources of inflow - the single largest source is Adsense, but that’s not more than a third of the total.
Most full time businessmen I’ve met tend to have a similar approach - a basket of opportunities that they’re earning off. Whereas most employees I’ve met don’t have significant alternate income sources. If you leave out the “Double Income” element that comes with couples where both work, this probably is a significant risk - that your income and fortunes rest on a single support.
The funny part : Most people who choose to be employees cite risk as being the reason for not going into business!
Written by 2cworth on May 13th, 2006 with
1 comment.
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#1. May 13th, 2006, at 6:49 PM.
That is so true! By creating multiple sources of income, you reduce your risk if one suddenly dries up. I only have one primary source of income and I am not part of a dual-income household. However, not all of us are cut out to be entrepreneurs. But this risk something I think about frequently. I’m glad you highlighted it with this post.