4:05
Eric Siu and Neil Patel break down five ways to diversify income: adding upsells and related services, hiring expertise, forming partnerships, buying existing websites, and using omnichannel marketing to reach more customers.
Eric Siu and Neil Patel break down five ways to diversify income: adding upsells and related services, hiring expertise, forming partnerships, buying existing websites, and using omnichannel marketing to reach more customers.
Today we are going to talk about 5 easy ways to diversify your income. But first and foremost, Neil, why should we be talking about diversifying? Because if you look at Warren Buffett and you look at Charlie Munger or even Mark Cuban, they say diversification is for—
Technically, they have diversified because they own tons of businesses.
Yep.
And I believe that when you diversify, it doesn't have to be diversification into multiple businesses, but it can be multiple income streams within your existing business. Just like you want to diversify your marketing. If you're relying on SEO, something happens with the Google algorithm, you're screwed. What about the Facebook algorithm? Same issue. So you should have social media marketing on all the different platforms, SEO, paid advertising, email marketing, right? You're going omnichannel with your marketing channels. With business and your income streams, for example, Eric and I run an agency. One income stream could be doing SEO. Another income stream can be doing pay-per-click marketing. Another income stream could be doing email marketing for our clients. It's all the same business, but you're diversifying where you're getting your revenue from. So then that way there's much more stability in there for you as well. You can even go further and say, hey, we only take on enterprise clients. Now we're also going to start taking on small and medium businesses and do consulting for them as well. That's another way of diversifying your income streams so that way it provides more stability and growth for your business. Yeah.
They say the, they say, I forgot who said this quote, but the, a lot of entrepreneurs have 7 different types of income streams. So when I think about diversifying income, let's say you start with the service business first. What I think about first is what is closest to what I'm doing? So let's say I'm running an SEO agency. Maybe the next thing is maybe I add in like a content marketing service and maybe I add in social media. So I try to add in things that are related but are like an upsell, right? The next level up. And so that way I can add different services to my services business. So that's one easy way of doing it. I think A service business is one of the, one of the best ways to start out if you don't have any resources, because it doesn't take a lot of resources to get going. So that's what I would say. Look for something that's super related, because it's not going to take as much work. It's not going to be as much of a lift to try to add on this additional income stream.
Yeah. And when you're thinking about what income streams you should add to your business and how you should expand, the easiest way to think about it is, is your business continually growing doing what you're doing? If it is, Continue just focusing and double down. The moment your growth starts slowing down, add new lines of business, add new offerings to your existing customers, but wait until your business starts slowing down before you do that.
Cool. And then number 3 from my side is if you don't have the expertise around this, the last episode we talked about removing yourself from your business, it's hiring the help. So if you, let's say you're doing an SEO agency and then you add content marketing, maybe you want to add a paid media line of business. So this is where you hire amazing people that have been there, done that. And then that way you can diversify your income. So I'm continuing to relate this to the services side of things. So that is number 3.
And number 4, partnerships. Partnerships is an easy way to diversify because what you can do is you can sell to other people, they can sell to you. And when you're cross-selling like that, your income can grow really fast. And it's an easy way to just expand without having to put in a lot of cash.
Cool. Number 5, last but not least, is you can go buy other media properties or buy other websites. So you can go to Flippa, you can go to feinternational.com, you can go to microacquire.com. These are all great websites to start with. And what you can do there is, let's say you're an e-commerce website, or maybe you have a great performing Shopify store. Maybe there's some other— maybe it's related to health and wellness. Maybe you go to one of these broker websites or brokerages and you go buy things that are related, other Shopify wellness websites that you could combine in, and you start diversifying your income because these are different businesses. Businesses that already have revenue. So it's an easy way to think about it. So these are just 5 ways to diversify. Guys, by the way, text us 310-349-3785. Once again, it's 310-349-3785, and Neil and I will let you know when we're going live and we can use your help with topics and things like that. It is free to do that, and we will catch you tomorrow.
