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otiose
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Joined: 17 Apr 2008
Posts: 18
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# Posted: 18 Apr 2008 22:05 · Edited by: otiose
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I've successfully worked full-time from home for just over 20 years now, and continue to do so.
I'm now about to reveal three important keys to success -- ones that are often overlooked by those eager to toss in their day job to work from home.
1 DIVERSIFY
My major piece of advice to anyone wanting to work from home is this:
YOU MUST HAVE MORE THAN ONE BALL IN THE AIR AT A TIME.
In other words, you must not be dependent on just one income stream.
You need several irons in the fire. Have different eggs in different baskets. Develop your own mixed economy.
Diversification is the name of the game.
Good farmers know this.
Ask any good financial planner and they will all tell you: "Spread your investment money across different asset classes." So if one goes down (shares right now, hmmm?) then the others can keep you afloat.
Seek to do the same when working from home.
If your income is from just one source then you are very, very, vulnerable.
"Why is this? " I hear you ask.
Simply put, the goal posts will suddenly move without warning and leave you empty handed.
Consider these:
* A new technology can put you out of work in a very short time. (We don't see many chimney-sweeps these days. Electric heaters quickly caused their demise.) So develop several areas of skill and expertise.
* You can easily lose major clients overnight through death, transfer or resignation. And the 'new bloke' doesn't want to use you.
(That happened to me several times as a freelance journalist. An editor who bought from me would leave. A new editor would appear and flick me without a blink.)
* Sickness or accident can stop you working. Without some passive income streams you're in trouble -- especially if you've got dependents and a mortgage.
I could go on but you've got the point by now.
2 ACTIVE AND PASSIVE INCOME
Active income is derived by the sweat of your brow, using those skills in which you are competent.
The maths is simple: No work = no income
Passive income flows without continual effort on your part.
You work hard initially to put the structures in place. Then it runs on auto-pilot.
Rinse and repeat.
So, when working from home,
* develop several streams of passive income
* develop several streams of active income
For example, my areas of skill and competence are journalism, education, personal computer repairs and forensic troubleshooting.
My current active income is derived from various self-employed activities using my training and experience:
*proofreading
*journalism
*writing
*PC repairs
*PC forensic troubleshooting
*PC tuition
Through sensible time-management I successfully juggle all these balls. If one ball ever drops the other income-producing-balls are still in the air.
Mornings are for my PC activities. Afternoons are for my other activities.
If one is lean for a time, I can spend all day on the other. See? Diversify. Develop a mixed economy.
All this diversification also results in:
*an interesting variety of jobs
*interactions with machines
*interactions with people
*routine activities mixed with non-routine
* less stress...and so on...
Meanwhile, in in the background, the passive income gently trickles in.
Just one of those sources is from the sales from my eBook, Simple Fixes For Your Sick PC.
Two years in the writing. Very hard work getting it all into place but it's done now.
I then entered into a partnership with a marketing lady, so I'm freed to continue with product development.
This brings me neatly to the third leg of a stable home-income stool.
3 SUB-CONTRACT
You must know when to employ a sub-contractor, so you are freed to continue with your core activities.
I'll stop here -- I can see some of you are getting glassy-eyed. 
But I look forward to the thoughts, ideas and questions from others on these three important areas.
Max
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aplina
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Joined: 5 Nov 2007
Posts: 260
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# Posted: 19 Apr 2008 17:23
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thanks for the info . very helpful for us who ar just starting.
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FedIntRev
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Joined: 9 Apr 2008
Posts: 11
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# Posted: 19 Apr 2008 17:41
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I hear that! I have 3 income streams created in less then one month that have enable me to quit my job and play golf everyday with no worry about how much im making.
I DONT DO NOTHING ANYMORE!
Dont have to. My 3 income streams are treating me gooooood.
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otiose
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Joined: 17 Apr 2008
Posts: 18
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# Posted: 19 Apr 2008 23:59
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Well done!
A perfect example of having several balls in the air at the same time.
Curiosity killed the cat...but I'll still ask you: what are your three income streams that are doing so well for you?
Quit your job...golf every day...no money worries...Surely there's a downside somewhere?
I'll watch this space with great interest!
Max
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gchildren
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Joined: 21 Aug 2007
Posts: 41
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# Posted: 21 Apr 2008 20:13
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Thank you for the post.
No doubt about. Multiple streams of income are the only pay to protect yourself from financial difficulty and plan for the future.
Thanks again,
John
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otiose
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Joined: 17 Apr 2008
Posts: 18
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# Posted: 23 Apr 2008 23:35
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My pleasure, John.
Where are some thoughts and/or success stories from others?
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jschuman
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Joined: 21 Jul 2007
Posts: 164
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# Posted: 24 Apr 2008 16:38
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Max,
I think all 3 points are valid. One thing I might say is get one thing going before adding another. I see people always thinking the grass is greener and jumping around while never ever really taking the time to get one income stream started.
There are a lot of ways to make money online. I currently have 9 different income streams working, but I always get one going before adding another.
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westfam11
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Joined: 8 Aug 2007
Posts: 468
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# Posted: 24 Apr 2008 18:25
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Jeff,
Very good advice. I was trying to do three different businesses at once and I wasn't doing very well with any of them. A couple of months ago I regrouped. Picked one to totally get going which I did and now I am working on my second stream.
Becky
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otiose
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Joined: 17 Apr 2008
Posts: 18
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# Posted: 24 Apr 2008 20:07 · Edited by: otiose
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Ha. Because it was so obvious (well, to me at any rate) that you only develop one at a time or you'll be stretched too thinly, I didn't bother to mention it !
But it's good that Jeff and Becky have pointed that out -- thank you to both -- and that they are progressing well with developing their income streams.
A Suggestion:
My third 'leg' of the stool was to appoint sub-contractors.
I think it would be very useful on this forum to have a section where we can all post if we have specific skills we can 'sell' to others as a sub-contractor.
I'll mention that to Vishal and see what he says. If you also think it's a good idea then do tell him.
The more that support the idea the more likely it will be actioned.
Well, that's the theory...
Max
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otiose
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Joined: 17 Apr 2008
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# Posted: 24 Apr 2008 21:39
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OK -- I've now floated the idea in the Suggestions and Feedback section.
See you there!
Max
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seeyalater72
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Joined: 5 Mar 2008
Posts: 197
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# Posted: 24 Apr 2008 23:18
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There's some very good advice here.
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amylaine
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Joined: 18 Mar 2008
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# Posted: 25 Apr 2008 00:24
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I totaly agree with this. If you plan to work at home without a actual employer, at least one or two income streams are necessary to keep you out of harms way. On the internet it is easy for a site to close down or someone not paying after they have paid many times.
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[url=http://www.ehow.com/how_2309804_work-home-paying-fees.html ]How to Work From Home without paying fees.[/url]
[url=www.ehow.com/how_2320475_free-small-business-grants.html]How to Find Free Small Business Grants.[/url]
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Joined: 22 Sep 2007
Posts: 2069
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# Posted: 25 Apr 2008 09:54
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otiose,
Welcome to the forum.
It's good to diversify income streams - both active and passive. While it's good to have a general approach to things, I would add that's it's also good to diversify tasks to remain interested in projects and making money online in general. It also helps to maintain sanity.
Contracting tasks frees up time for new projects and hobbies. It also brings additional minds and ideas to the table.
Jeff brought up a critical condition - it's good to set up each project well before moving on to another project.
At some future point, joint ventures should be considered as well. Furthermore, a person should consider selling their business or a component of the biz if the conditions are favorable.
For example, a person might decide to sell the domain rights but keep the company. Or, sell the company without parting with the customer database or the domain. I've done both of the above on more than one occasion.
It's both wise and profitable to think outside of the box and to understand a wide variety of scenarios. That brings me to a new point. You can further diversify your income streams by engaging in the tried and true methods while also testing new spins or original ideas - outside of the box thinking and experimentation.
~Newbie Shield~
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opendomain
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Joined: 19 Aug 2007
Posts: 535
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# Posted: 25 Apr 2008 11:21
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Definately some good advice. Here, I would encourage "newbies'(not newbie shield) to heed the advice of several here and FOCUS on 1 "project" at a time. Or you'll find yourself halfway done with half of your ideas.
Another note I would add as a bit of advice choose your diversification opportunies based on an overall plan. I've seen to many times where people have diversified into very time consuming projects only to see their previous project thrown to the wayside and profits drop because juggling several more time intensive projects resulted in less time for quality.
With that in mind, I generally try to find programs that compliment eachother or that can be used to lead people from one to the other.
Best of luck,
Gilbert
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zeropoint
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Joined: 4 Mar 2008
Posts: 22
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# Posted: 25 Apr 2008 16:44
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This was on my mind for a while, glad someone actually put it down on paper,a writer no less!
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otiose
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Joined: 17 Apr 2008
Posts: 18
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# Posted: 25 Apr 2008 21:58 · Edited by: otiose
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Excellent points, Gilbert.
"...I generally try to find programs that compliment (sic) eachother or that can be used to lead people from one to the other. "
This sort of cross-marketing is very powerful. It helps the viral-ripples to flow outwards, via associated links, back links and so on.
And your timely advice
"...choose your diversification opportunies (sic) based on an overall plan. "
will save a lot of wheels from spinning but getting nowhere.
Frantic activity, without a sense of direction, has burned out many dreams and aspirations in all sorts of occupations.
The old adage, "If you fail to plan you plan to fail" is as true now as when it was first uttered.
Max
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puckjr
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# Posted: 29 Oct 2008 01:38 · Edited by: puckjr
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jschuman: There are a lot of ways to make money online. I currently have 9 different income streams working, but I always get one going before adding another.
I have read a few of these posts, and there is a lot of good advice, but I especially needed to read this one. It's not that I wouldn't have figured it out, but I have sort of been itching to start something else while my first online income stream is barely up and running. I'm making money, but I don't have the exposure that I want yet. I have been actively searching for more, when I should be focusing on getting this one to a higher level.
Any advice on what to look into next would be highly appreciated. I'm hoping to get to about a $1000 per month with the one I've got now. If I can do that with 2 or 3 other things, I would be happy with that, at least for awhile. the method I'm using has people making much more than $1000 per month, but it seems it would take a lot of time invested to get there and to keep it going. You have to be active in it to keep it going.
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