Five reasons freelancers need more than one income stream

Posted on: February 23rd, 2014

If you are freelance, there are a number of reasons why your bank account can end up with nothing in it:

  1. Your clients are slow to pay you
  2. You experience the classic feast and famine syndrome
  3. A client has gone bust, owing you money
  4. A client paid your invoice into someone else’s bank account
  5. You just lost a couple of regular, well-paying jobs

All this has happened to me over the years.

An overdraft can help tide you over when cashflow is tricky but they can be expensive. And your bank might not offer you a sufficiently large overdraft.

An alternative is to find more than one income stream.  Here are some ideas:

- Sign up to online affiliate schemes
- Launch and sell an online course/information product
- Write an e-book and sell it on Amazon
- Sell advertising on your blog/website (if you have lots of traffic)
- Run face-to-face workshops
- Run paid-for webinars
- Get a part time job (eg: pet sitting, working in a bar etc)
- Join a direct selling scheme/network marketing company
- Find ways to monetize your hobby (eg: if you are a crafter)
- Become a coach or tutor
- Sell goods on eBay

How much do you need to earn?

Posted on: June 9th, 2010

Whether you charge a project rate or a day/hourly rate, here are the factors you need to take into consideration to ensure you earn sufficient levels of income:

  • Unless you’re a contractor on a full-time contract, it’s unlikely you will be earning money every day of the week.  And you don’t get paid for undertaking tasks such as marketing yourself, new business meetings, admin etc. You also don’t earn anything when you’re sick or go on holiday (unless you’re on a retainer).
  • You will incur business expenses. I work from home so I have low overheads but I still had to kit out my home office and pay for my website to be designed and built. My ongoing expenses include my marketing and networking activity, training courses and instructional books, my accountant, phone and internet connection, stationery, travel expenses, professional subscriptions, insurance….the list goes on.