The Importance of Creating Multiple Streams of Income as a Freelancer
Learn how to diversify and creating multiple revenue streams are essential for continued growth, peace of mind, and stability as a freelancer.
Every new freelancer has a vision of what freelancing will be like. This vision usually includes the optimal project and the perfect client, bringing in the right amount of money.
And when you start, you will often only have one or two different income streams, usually coming from your first client. It could be a short-term web-design project. Or, it could be an ongoing support agreement with a business.
This is great, but a freelancer who only has one client or one project isn’t a freelancer. They just have a part-time job. If this is all you want, that is fine.
But, if you want to grow your business and make this freelancing life work for you, you soon realize that multiple income streams are essential for long-term success.
Multiple income streams can mean many things, like having several clients, doing varied work, or investing in different lines of business.
There’s a difference between a new freelancer specializing in web design and an experienced, diversified freelancer.
The new freelancer has two monthly contracts to manage — hosting, providing simple site updates, and troubleshooting if something goes wrong. At $200/client, this is a great start.
But this freelancer is in a precarious situation. What if one (or both) of the clients decides to go in another direction? What does the freelancer then do? How do they compensate for lost revenue? How do they gain more clients? How do they keep moving their business forward?
In this article, I want to remind you why generating multiple income streams is essential for success as a freelancer and then explain how you can generate multiple income streams.
So, why do you need multiple income streams to succeed at freelancing?
Let me give you 5 reasons to consider: