Why everyone should have a secondary income. It’s worse than you think.
As you read this, people are being laid off, getting sick, and having to deal with an unfortunate event at this very moment. With the unpredictability of life and a job market that relies on one source of income in a gentrifying society is increasingly parlous. The most prominent “hotel” company doesn’t own a single hotel; Airbnb. Amazon has surpassed stores like Wal-mart as being the largest retailer, and without owning a single store. Then Uber, which is dominating the transportation industry compared to taxis, and this is only the tip of the iceberg (Burns). Times are changing, but thankfully, it has never been easier to generate alternative forms of income than it is today. What are different kinds of income available? What are potential pitfalls of them? And how does someone get started? All of these questions shall be answered shortly. As cliche as it sounds “never place all of your eggs in one basket,” and this is why having only one form of income, especially nowadays, is not enough. Everyone needs to have at least one source of secondary revenue because of the unpredictableness of not only the job market but also life, and here are some of the bests forms to do first.
With that being said it is best first to address the many pitfalls that could occur when starting a new money-making enterprise to ensure that no-one becomes disillusioned or quit their jobs just yet. According to statistics by Forbes authors, 90% of people in the world don’t own their own business, and the ones that do have a company have an 8 in 10 chance of failing within the first year (Wagner). With these odds, it is imperative to be cautious about what kind of secondary income someone may decide to create and how someone should go about operating it. Most businesses within the first year, fail due to one or two overarching reasons. The primary factor is how much income they are generating and the second is how effective are their marketing strategies performing for them (Burns).
Another pitfall before undergoing profit creation to take into account is what is the end goal that you have in mind for the new income source. Assess how much time you have to commit, and how much revenue available, and the overall end goal. This could mean deciding on if you want this new income to become a full-time job at one point or only a means of a secondary income. Another useful aspect to planning for would be how long do you want to undergo working on the secondary business, how long do you want to stay in the industry, and a contingency plan in case the company/investment fails. Many entrepreneurs keep their full jobs while working on their alternative “jobs,” at least until it makes more than their regular job. Lastly, it is best to plan for the worst by saving up enough money to pay for all of your expenses for a year. This includes rent, food, business funds, and leisure. It is always best to be prepared for the unexpected in a world of unexpectedness.
One of the first sources of secondary income that many people are starting off with and one that could be started today is starting a blog or a vlog (video blog). Not only is it really “easy” to start and have a minimal overhead price it is one that requires the least amount of time, at least to start. Now, if you are new to the concepts of blogs and not sure how it could generate you money here is a quick overview of how blogs work. One of the best ways that I make money from a blog is to sell either my products or someone else’s products on the blog or vlog. Another key way people make money using a blog is to partner with people who would want to place ads on your site. Not all blogs are created equal, but some blogs like the HuffingPost generate 14 million dollars a month while other blogs may not generate any income at all (Rowse). The best way to achieve success with a blog is to write about something that you are passionate about and one that you know a lot about to ensure you have a lot of content with a long shelf life on it (will be viewed many times). Like all things in life, it is a great idea to model after those who are doing a great job at what it is you wish to do as well. HuffingtonPost, listed above and run by Arianna Huffington. Huffington compiles news from many sources and engulfs many different niches and combines them all into one platform. Business/education blogs and vlogs are also very profitable right now. A great way to find bloggers and vloggers to learn from would be to go to BuzzSumo.com. In the famous words of Pablo Picasso, “Good artist copy, great artist steal,” BuzzSumo is a platform that shows all of the biggest bloggers/vloggers, and this is a perfect way to learn other than just doing it. Again, most businesses fail, and this may not be one that can “fail” because it only stops working if it is taken off the web. However, it is one that will take awhile before you start generating real money from it as seen from statics created by Probloggers.
Figure A; Monthly earning from the blog (Rowse Darren).
This graph highlights the percentages of people making money from a blog/vlog and how much. A vast majority generate under $10 while only 4% make 0ver $10,000. Like the old saying goes “it takes money to make money” this may not have the greatest percentages but if done effectively can have huge lasting payoffs.
If you like the concept of blogging but don’t enjoy the wait and averages of what people are earning from it then giving your expertise to others for a fee is for you. A similar model to blogging but has a much higher potential is to teach others or offer services online or offline. Offering services can be done many ways and can even be combined with many other business models. One way to get started could be to create a website and let people know what you have to offer (although a site isn’t necessary, it does help). If you are not tech savvy some platforms will do all the coding of the site for you and all you need is you and your ideas to put on it! Some of these sites are Udemy, Fiverr, skillshare, and countless others. Regardless of your niche, there is a spot for you. Be it selling your know-how on the topics of business, art, math, marketing, writing, and [fill in the blank], there are no limits to what you can offer or teach. There are regular people, CEOs, students, and teachers who are making anywhere from double digits to seven-plus digits this way. Some people to learn from could be Gary Vaynerchuk, Grant Cardone, and many others. Vaynerchuk is a high-level entrepreneur who gives a lot of advice to people trying to transition into being their boss and runs a marketing agency. Cardone is one of the leading coaches in sales and teaches people how to “10x” their lives. One of the best aspects of creating your income from content that you made is that there is no cap on how much you can generate. Service provided is a model that anyone can do because everyone’s an expert at something.
Figure C; Udemy Revenue generated (Zaff Denis).
This graph showcases which industry/topics are generating the highest cumulative revenues. The most senior is development making over 145 million, and the lowest being test prep bringing in over 1.6 million dollars in 2014.
A very lucrative secondary income that is suggested everyone gets involved with is investing. Investing is one that can take a lot of time or no time at all, but investing does require starting capital, which is why it can generate so much currency (entrepreneur). Before starting to invest, it is best to take a calculated risk and not rush anything. Funding is one of the riskiest means of a making a secondary income much like starting your own business. However, it has a wide range of options and different levels in regards to how risky it is. A potential investor may want to consider these options, real estate, forex, businesses, cryptocurrencies, stocks and bonds, and a there are a lot of other options as well. Each of these has its pitfalls and payoffs. Real estate is one of the most profitable if done right, but is often the riskiest. To get started in real estate you will need to license fist and then team up with a broker. Many training facilities can assist someone with getting started. Forex is trading currencies and is not customarily performed by novice investors but can quickly be learned. Similar to cryptocurrencies, and stocks/bonds all of these can also be hazardous due to the volatility of it since the value depends on how badly the public wants it at any given time. Forex and cryptocurrencies are also best to create an end goal in mind. Both can be performed to gain short-term gains or long-term ones which makes it necessary to decide your plan of action early on (Patel). Getting started is simple and only requires an electronic device and a free account from coincase.com for crypto or forex.com for forex. Investing is by far one of the best ways to generate a separate income, and the two best parts about it are that you don’t need to quit your job to do so, and allows you to make money while you sleep. But, overall, there is no better investment than investing in yourself.
It is apparent that there are countless ways to generate a secondary income, from those that are not risky and have little overhead to those that are very risky, but with a huge pay off as the risk grows. Jobs like taxi drivers, stores, hotels are having to lay people off due to the rise of people wanting to employ themselves (Burns). With the unpredictableness of life and the ever-changing job market, it is becoming a must that people have another income to rely on in case one doesn’t stay consistent. Regardless of who you are and where you are it is never too late to take charge of your life and become financially free and independent. It’s time to create one of your many secondary incomes before it is too late.
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Burns, Tim. Entrepreneurship.com., Ill: Kaplan Publishing. 2001Masterfile Premier, lsproxy.austincc.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=54267&site=ehost-live.
Damian, Ryan. Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation. 3rd ed., Vol. 3 Kogan Page, 2014. Ebook collection, lsproxy.austincc.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=783328&site=ehost-live.
Patel, Sujan. 7 Ways to Make Income even with a Full-Time Job., Entrepreneur Media, 19 Sept. 2016, http://www.entrepreneur.com/slideshow/299326. Accessed 19 Mar. 2018.
Rowse, Darren. Can You REALLY Make Money From Blogging: 7 Things I Know About Making Money From Blogging. ProBlogger Media, 28 Nov. 2012, https://problogger.com/can-you-really-make-money-blogging-7-things-i-know-about-making-money-from-blogging/.Accessed 19 Mar. 2018.
Wagner, Eric. Five Reasons 8 Out Of 10 Fail.,Forbes Media, 12 Sept, 2013, https://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail/#48b9c2016978. Accessed 19 Mar. 2018.
Zaff, Dennis. 3 Graphs About Udemy Revenue., Udemy Media, 22 Dec. 2014,
https://www.rukuku.com/blog/3-graphs-about-udemy-revenue/#.WsJNmejwaUlAccessed 19 Mar. 2018.