As a service provider, the primary source of your income will be based on your client work. This can be a great thing, but it can also have some downfalls.
For instance, what if a client decides to go in another direction, what if they don’t pay the final invoice, what if you aren’t getting enough inquiries to book up your calendar?
These are all issues that service providers face at one point or another.
So, how do you create a steady income and get the financial freedom needed to take your business full-time?
Diversifying your income.
Diversifying your income is a fancy way of saying, don’t put all your eggs in one basket. It’s important to have multiple steams of income so that your financial well-being doesn’t fall on one thing.
In this blog post, I’m going to share why it is so important to diversify your income, and a few different ways you can start to diversify your income, today.
Why should you diversify your income?
Diversifying your income beyond clients allows you to stabilize your income. If you are making a living based off of your client income, adding an additional income stream will allow you to pad the bank a little so if something goes wrong, you won’t be in financial trouble.
Expand your business
Diversifying your income, allows you to expand and grow your business.
When you have a more reliable income and a higher profit margin, you are able to expand your team, outsource tasks, utilize more automation services and so much more.
When you choose to diversify your income, you can start creating evergreen content.
Evergreen content is content that is beneficial to your audience long-term, but you only need to create once.
Being able to create something once and sell it again and again is a huge way to quickly and efficiently diversify your income. You are able to bring in a limitless amount of profits with a small fraction of your time.
Time doesn’t equal profits
When you work as a service-based provider, your number one commodity is your time.
You can only work with a limited number of clients in a month which quickly limits your income potential. On top of that, you are likely putting an emphasis on client work over business work, which means you are spending longer days at your desk.
When you diversify your income, you are able to spend less time on work and more time with your family and friends.
How to Diversify Your Income
A simple way to start diversifying your income, is by creating a product.
When you create a product, you are able to spend a lot less time working with people one-on-one and spend more time on client work and marketing efforts.
Note: If you create a physical product, it will require a little more money up front. So, remember to test your market before jumping in head first! If your product is a digital good, all it will require is a little time to create and market it.
As a service provider, you are likely an expert in something.
Try turning a service you offer into a course. How can you teach people to do what you do? Maybe you can teach people how to meal prep, how to design their own jewelry, how to use Tailwind (wink wink).
Courses require a lot of up front work, but they can also bring in a lot of revenue.
Are there products you use and love? Consider marketing them!
Affiliate marketing is a great and simple way to add a little extra revenue to your bank account. I will say, unless you have a large and loyal following, you may not see a lot of return here. But, if it’s something you would already be talking about, it doesn’t hurt to get paid to talk about i!
How have you diversified your income? Let me know in the comments!