For years now I’ve been a big believer in having multiple streams of synergized income.
Some people, such as some leaders in the network marketing industry, however, frown upon multiple streams of income and usually try to discourage their downline members from having them.
You’ll often hear leaders talking about the need to just focus on ONE thing and one thing only.
You’ll often hear them say things like “You have to focus on ONE thing 100% so that you get 100% out of it, instead of trying to split your focus in multiple directions.”
What they try to tell you is that focusing on something 100% is better than putting 50% focus into two things, or 25% focus into 4 things.
In this post I’m going to show you why that may not be the best advice for your business.
The Input / Output Formula
Most people look at a business like a box which you invest a certain amount of time, resources and energy into and they say that you’ll get out of it (OUTPUT) however much you put into it (INPUT).
They’ll say that if you put everything you’ve got into it, you’ll get a lot out of it.
We could simplify this into a formula that looks something like this:
TOTAL ENERGY YOU INPUT INTO BUSINESS (INPUT) = RESULTS YOU GET OUT OF BUSINESS (OUTPUT)
This may seem like a simple formula that makes logical sense, but it’s not entirely accurate.
It’s typically based on a simplified model that is similar to having an hourly job, where the hourly rate is set at a certain price, such as $20/hour, and then the only variable is how many hours you work.
For example if you work 10 hours (Input = 10 hours), then you’ll make $200 (Output = $200).
If you work twice as much, putting in 20 hours (Input = 20 hours), then you’ll make $400 (Output = $400).
Using this simplified model of the world, if you were to go out there and try working TWO equally paying jobs, putting in 5 hours into each job (Input = 10 hours), you’d make $200 (Output = $200).
Based on this model, it makes no sense to work 2 different jobs putting in 5 hours into each one, when you could just instead focus on ONE job and put 10 hours into it.
If BUSINESS worked like this, then yes it would make sense to just focus on doing ONE thing, and ONE thing only.
But in reality, business does NOT work this way, which is why multiple streams of synergized income is a much better strategy.
Let me explain.
The More Realistic Business Formula
When you’re building a business of any kind, you have to realize that YOU are always just one part of a more complex system.
Unlike a job system where your hourly rate is set and guaranteed to be a certain rate, in a business environment, the amount of OUTPUT (money made) you get from each hour of energy you put in (INPUT) can vary greatly over time.
There are MANY variables that affect the amount of OUTPUT you get per hour of INPUT from a business system.
Factor #1 – Seasonality
For example, if a kid was to setup a lemonade stand on the road, in the middle of winter, trying to sell lemonade to people… that kid could sit there all day long and not make a single sale. Why? Because it’s cold outside and nobody is thirsty.
Take that same kid with the same lemonade stand, and put them out there for the day on a hot sunny day in the middle of summer, and that kid might completely sell out of lemonade.
In this way, most businesses are at least somewhat seasonal as well.
For example, weight loss systems, personal trainers and gyms are busiest during January when everyone sets their New Year’s resolutions to lose weight. But that same business might be completely dead during the summer time, when people don’t have weight loss on their minds or they just go outside to exercise.
So the season of the year could have an impact on the amount of OUTPUT you get from the amount of INPUT you put into a business.
Factor #2 – Product / Service Launches
Another thing that can affect results in your business is product or service launches.
For example, right now, Empower Network is right in the middle of a new product launch with it’s Kalatu blogging platform and new sales funnels.
This makes it a prime time to join Empower Network and to promote it.
When a company launches a new product or line of products and when there are a lot of cool and exciting things happening, you can build that business much faster and easier with the same amount of work.
But as an example, if I was part of a company that isn’t launching a new product for another 6 months, right now might not be the best time to put energy into promoting that company.
Sometimes the season of the year affects how easy it is to make money with a business.
Sometimes whether or not the company is rolling out a new product can affect how easy it is to make money with a business.
Factor #3 – Industry Changes
Sometimes temporary changes in government regulations, or some good or bad media publicity can affect how easy it is to make money with a business.
For example, back in Oct/Nov 2009, Google changed the entire affiliate marketing industry by all of a sudden banning over 100,000 Google AdWord’s accounts.
The entire affiliate marketing industry changed virtually overnight.
Eventually, within about 6-12 months the industry started to recover as people found other streams of traffic to utilize for their campaigns, but anyone without another income stream for their business had to scramble to not go bankrupt.
Factor #4 – Other People Inside Your Business
Another big thing that can affect the amount of OUTPUT (income etc.) you get from a business is the OTHER people who are involved in your business.
For example, anyone building a network marketing company will have a downline of team mates working with them.
Often times, your income is directly proportional to the results that THEY are producing in the business, and their results will depend on the amount of time and energy that THEY are willing to put in.
So, for example let’s say you were building a downline in a network marketing company part time and you had 5 people working with you and each of them was putting in 5 hours per week.
That means that your business was getting the benefit of 25 hours of INPUT (other people’s energy/time) every week.
And let’s say that you were putting in 5 hours / week yourself as well…so that’s 30 hours TOTAL.
Now, let’s say that you were to quit your job and focus 100% on just that ONE business, and now you are putting in 50 hours per week yourself, as well as the 25 hours that your team is putting in.
That’s a total of 75 hours of time invested in your business – 50 hours coming from you and 25 hours coming from your team.
But let me ask you this….
If you were previously putting in 5 hours / week into your business, and that was enough to get 5 other people to put in 5 hours each, that means YOUR input was 5 hours and the business was getting a total of 30 hours of energy put towards it by your team.
Now, if you focus 100% on your business and put in 50 hours into it, do you think that the other people in your business will also go from 5 hours/week to 50 hours per week?
In most cases they won’t.
Just because YOU commit 100% of your available time to a business, doesn’t mean everyone in your team will.
This means that just because you multiply YOUR efforts by 10 fold, it doesn’t mean your business income will go up by 10 fold.
In this example, YOUR INPUT went up by a factor of 10 TIMES, but the business as a whole is only getting about 3 TIMES the total input.
Does that make sense?
So, sometimes the limiting factor in a businesses growth is not just YOU and what YOU do, but also the other people involved.
Factor #5 – Your Customers
Another factor that can play a key role in how much money you can make from a business (OUTPUT) based on how much time/energy you put into it (INPUT) is your customers.
For example, if I invest 1 hour of my time per day to write valuable content for my Blog, and I email that out to my subscriber list, there’s a certain amount of value that is received by them each day.
But let’s say that I decided to focus 100% on my blog and tried writing 8 blog posts in 8 hours, every day and I sent THAT out to my subscribers every day.
Would I be offering 8 times the value for my subscribers?
Probably not, because my subscribers most likely will not have the time to consume 8 blog posts per day, every day.
So a LOT of that time would be wasted effort.
These are just a few of the factors that are always at play when working on an income stream or a business.
Because of this, the formula isn’t as simple as YOUR INPUT = BUSINESS OUTPUT.
You can’t just say, “You’re going to get out of the business, as much as you put into it.”
It would be easy if it worked that way, but the truth is that in most cases you are NOT the only factor in a business or an income stream.
Yes it is true that in a lot of cases you can be a BIG factor in the amount of income a business or an income stream can produce, but that’s not always the case.
Some businesses or income streams actually work better if you just invest 1-2 hours per day to them, and then work on something else.
Other businesses work better if you invest 4-6hours/day into them, and yes there are other businesses / income streams that only work when you focus on them full time.
Personally, what I like to do is to have a maximum of one income stream that requires a 4-8hours/day commitment and then to also have a few other income streams that only require a 5-10hour/week commitment to them.
Also, depending on some of the other factors above, such as for example seasonality and product/service releases I may also rotate how much time/energy I put into each income stream throughout the year.
What I love about income streams such as Blogging with Empower Network, is that you can decide on a certain number of hours per week that you want to invest into the business, and it doesn’t have to be a lot to start building a pretty respectable income stream.
With each Blog post you write, you’re launching another online “real estate property” as each blog post gets indexed by Google and starts to draw in more and more traffic into your business.
SO the cool thing with income streams like that is that even though I’m not working on them 24 hours a day, my BLOG is serving people and providing value with my blog posts 24 hours/day. This provides an awesome amount of leverage, so that I don’t have to always be working on this income stream for it to generate income for me.