All Wealthy People Have Multiple Streams Of Income - So Should YOU!
To build wealth, we must establish multiple streams of income or what is known as
Diversification.
Today, I want to share with you one of the most important strategies in building
wealth, one that can improve your chance of online success.
It is the strategy of: DIVERSIFICATION
The dictionary meaning of the word diversify is: to make diverse or various in form
or quality; to give variety or diversity to; finance, to buy (securities) in varied
businesses or industry. In other words, don't put all your eggs in one basket.
Have you heard of a Diversified portfolio? This is where someone's portfolio is made
up on many types of assets/ investments. For example, that portfolio may be made up
of stocks, bonds, gold, silver, and real estate. In this example should the stock
market take a nose dive, which it has been known to do, the investor in this example
possibly taking a great loss from that downward slide would not be left in a state of
bankruptcy from having had the bottom fall out. Most likely their bonds and gold
would still be maintaining a high value.
There is a proverb which says: "to everything under the sun, there is a
season......a time to be up and a time to be down". A time will come when a particular venture
will take a down turn. If you have diversified your income, then the bottom will not
fall out for you when one income stream takes a nose dive.
This can easily be related to the "job" environment. It is now common place to hear
of major corporations forcing employees into layoffs or early retirement. Why?
because they have re-organized and now must boost their profits. So, what does this do to
you that faithful employee of 15 or 20 years? You guessed it. That source of your
income is Gone! What then?
When your income is Diversified into multiple income streams, and there comes a down
turn you are not wiped out financially. There would still be a productive income
streams.
How can you apply Diversification to your current business?
Offer your customers and prospects more choices.
By offering more choices to your customers and prospects. In so doing you are
offering more opportunities to purchase from you, and giving them more options, which
makes them more likely to purchase multiple items, and return to your site more
frequently. For you this increasing the average amount of profit per order, and increased
traffic. This also offers you the ability to easily Duplicate your efforts.
An example of this would be:
You have a website currently selling an Affiliate reports...'How To Make Money
Online', do you suppose you would provide a better quality of service to your customer
and prospects, if in addition to your report, you also provided other Affiliate
reports relevant to their success in marketing the 'Making Money Online' report? Sure you
would. Do you think your customers would be more satisfied and your income would be
greatly increased? You bet!
It would also open the opportunity for your satisfied customers to spread the word.
Word of mouth advertising is still by far the best. It carries with it a built in
testimonial.
Diversification helps you take maximum advantage of the lifetime value or your
customers. In Diversifying you will be building multiple income streams for yourself,
while at the same time providing your customer more choices. This presenting the
opportunity of being duplicated and consequently give your customers more reason to keep
coming back to your website.
Diversification Reduces The Risk Of Business Failure.
A Word to the wise: It would be wise to test in order to find which approach works
best in your situation. You could simplify this process by, first finding Your
niche, then finding a group of products and/or services which support and compliment each
other. Then, focus on marketing to your target or niche market. This caution should
be taken because Diversification can sometimes confuse prospects where the synergy
and common benefits of a combined group of products and/or services are not simply
and clearly defined.
HINT: Never promote a disconnected mixture of totally unrelated products and/or
services.
Some entrepreneurs find it simpler to initially focus on making one item without any
other offers that might confuse a prospect, and following up with related offers at
a later time.
Your percentages of re-sale to previous customers will be higher than sales to new
prospects, because your previous customer have proven experience with you. Your best
customer is one that already trusts you, and is satisfied with previous dealings
with you. Since people prefer to do business with those they know and trust, your
additional sales to existing customers will meet less resistance.
You have invested valued time and resources to acquire your customers, and most
likely had to overcome a bit of initial distrust when they first bought from you. If you
keep delivering them honesty, integrity and solid value through related offers, and
keep them satisfied through Good customer service, many will be glad to buy from you
again and again, and even refer others.
Marketing Cost:
Most of your marketing costs will be about the same, for promoting one or several
items. Per-item marketing expenses are reduced as each new product or service is added
to your line, because each shares the marketing costs with all the others.
No customer acquisition cost is involved in selling to an existing customer,
making such sales more profitable than
the initial sales.
Processing an order for multiple items involves nearly the
same amount of costs as a single-item order.
To re-cap, the real benefits of diversification come from:
Generate multiple streams of income.
Offering more choices to your customers.
Gain the potential to increase sales, while lowering marketing
cost.
Offering the ability to Duplicate your efforts.
Minimizes business failure.
Diversification, one of the powerful Keys to building wealth.
About the Author
>>> Lois has been blessed with earning a full time <<
income working from home part-time, through combining
MLM and Affiliate Marketing. You CAN TOO! Subscribe to
Building Wealth News Ezine and Discover how to
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