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Tuesday, December 30, 2008

Diversify Income Streams to Survive a Recession

As many who have recently been laid off or lost their job can attest, depending on a single source of income can be quite risky, especially if the job is in a non-essential sector or one likely to suffer during a recession. Some sectors are more recession-proof than others, for certain, and those will fare far better. But there is ultimately less security when one depends on a single company or other entity for income, rather than drawing income from a variety of means.

I am not necessarily advocating that every 9-to-5 worker open an entrepreneurial side business, but increasing one's diversification of income can certainly improve your ability to weather the tough economic times we are suddenly hearing so much about--and for many of us, actually experiencing in our own families, jobs and investments.

For the work at home mom (WAHM) or other freelancer, entrepreneur or online adventurer, this can mean a variety of things.
  • Writers may diversify by increasing the number and variety of writing clients, actively seeking new clients to replace those with less work. Never rely solely on just one or two big clients.
  • Residual income builders should add multiple income streams to their sites and content articles, such as affiliate programs, ad words, paid advertisements, information products, referral links and e-newsletters.
  • Webmasters should diversify their niche site topics. Even as advertising in some sectors plummets, it rises in others. Anticipate these changes and consider niche topics likely to be in demand despite -- or because of -- a poor economy.
  • eBay Sellers should also diversify what they sell to anticipate sluggish consumer spending. People still have some money; find out what they are spending it on and make some money doing it. Check out the knowledgeable eBay Coach for advice.
Whatever your area of expertise, and no matter what you do for income as a work at home mom (or dad, or anyone else) increase your sources of income during the coming year. Anticipate, rather than react, to what's going on in the economy and how that will affect what you do. Did you know there were many who made money during the Great Depression?

How do you plan to increase your income, despite a poor economic outlook for 2009?

1 comment:

Jules @ Lovely Beautiful Life said...

Good post! I'd like to start creating some additional sources of income beside my standard job. I better start brainstorming! But if you have specific ideas in another post for ideas to create additional revenue streams, that would be much appreciated.

Happy 2009!