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Saturday, January 31, 2009

Recession Survival through Income Diversification

While discussing the economy and how to survive job layoffs, a reporter asked me what advice I would give to someone anticipating financial storm clouds. I replied,
Diversify income as quickly as possible. If money is coming from only one source, you're too exposed. Have several sources of income, a side job, a product you sell, something else that brings in money other than your 9-to-5.
As a freelance writer/ online marketer, this is true for me as well. Writing just for one client, for those who ghostwrite or write for a byline, can be risky. I saw this firsthand in the past year when friends of mine on the WAHMs Who Write Forum were let go from Demand Studios, Writers Research Group and other large companies. Suddenly they had no work or very little, and their families were counting on their income.

My income comes mainly from the following, in no particular order:
Having income from a multitude of sources is my basic business model as a freelance writer and WAHM. I would be bored with just one avenue, but it's also a hedge against income loss as I could bring any one of these income sources up to a higher level if my primary sources dropped or dried up.

How do you diversify your income sources?

4 comments:

pfincome said...

Maria - I love your list of income streams. I agree with you that it is EXTREMELY important to have as many as you can right now.

Jennifer said...

I too am working on diversifying my income streams. I was let go by Demand Studios last summer. I was lucky that writing was only my part time job so it did not hurt as bad.

I am working on building my income through many places. I am still only writing part time, but am looking to take the plunge to full time this year.

Ehow
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Info Barrel
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My freelance writing blog
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mommierose said...

I started writing as a way to diversify income! What a timely blog post.

Earlyriser said...

Maria- Thanks for the encouragement to keep diversifying the income streams. You continue to be a huge help and inspiration as I work toward independent income. By the way I reference your Ehow ebook every two or three days. I keep finding more little tidbits that help....