In part three of this brand new mini-series covering the rules for setting up and scaling recurring income streams, I’m going to dive into the 18 different asset classes you can invest in to create recurring income.
But first, a note on overwhelm. Nowadays people are becoming more and more overwhelmed so I want to give you strategies and tactics to get rid of the overwhelm and make sure that you’re juggling the right capacity of income streams.
So, 70% of your time should be spent on your main business or income stream. 20% on your secondary, and 10% of your time on the rest. Why? Because by utalising the 70/20/10 rule you will have focus mixed with diversity and give you multiple streams of recurring income.
I know you’re all smart. I know you realise that setting up recurring income streams isn’t easy and it can be difficult. But it’s just important to keep on keeping on and never give up. You don’t plant a seed and come back on the next day and wonder where your tree is? No, you keep at it and you cannot lose if you keep at it.
You can’t lose if you keep buying properties, keep renovating properties and you keep putting tenants in. You cannot lose if you keep doing management and maintenance, you keep pushing for the planning and you keep figuring it all out. Ultimately it will pay off and with the tenth, the hundredth or the thousandth property or tenant that you buy you will have improved every step of the way. It’s the same with content, you have to keep putting content on your social media every day until one day it goes viral.
Okay, the next rule of setting up recurring income streams is you must systemise the asset. You must get the asset managed if you want to scale it. Why? Because If you’re working all day, every day on your asset class, it’s not really an asset class. It’s just a business. If you don’t have the people and processes and software and systems and automation and management, you’re going to be working on that asset for the rest of your life and it’s going to become another job. Always leverage, automate and manage.
As Progressive grew the right decision for leverage was to have a letting agency that manages the 1,200 tenants that we have. Progressive Lets manages the big apartment blocks that myself and my business partner, Mark Homer have developed and it’s enabled us to systems our assets.
Now, once you’ve built an income stream that is recurring or passive or residual and you’ve got the right processes, software and systems in place the next thing to do is repeat!
You’ve now created a standard operating procedure (SOP), a manual, a process, a way of automating and scaling your recurring income streams. It is now that you can create multiple income streams.
Personally, I have hundreds of thousands of pounds in book and audiobook revenue. I have supporter programme revenue, my rob.team revenue, my training income revenue, my real estate revenue and probably more. In total, I think I have 9 income streams from all the different sources of businesses and asset classes that I have. But the systems and models are much of the same, it’s the same processes and automation from one asset class to another.
Next is sponsorship, now sponsors are a bit different from advertisers. Advertisers are the ads squeezed in to your content, sponsors are more like partners. Infact a lot of people miss a trick with sponsors because they can be valuable and sponsor all of your content across different channels as opposed to finding advertisers for each piece of content you produce and you can get 10 or 20x the revenue if you utalise sponsors correctly. This is another reason why you should be on all the social channels because you’ve then got more media to attract sponsorship revenue from.
Okay, another recurring income stream can actually be capital. You can loan money out and secure it on the first charge of a property. If you have capital which many people do, you can actually lend it out and earn on it. You could get a 5% to 15% return If you have enough capital and it’s a recurring income stream that doesn’t require a lot of work.
The next one is one of my favourites and one that you can really scale if you systemise and automate it correctly. Information into income. So, if you have a skills, knowledge or experience in a certain area you can create and run a course, mentorship or mastermind in person or online and set up an ongoing membership type model from your information. Information is a billion-dollar industry, everyone has something that they’re passionate about. Everyone has something that they know, whether it’s a hobby or a profession that others want to learn, and that others would be willing to pay to learn. Information is one of the greatest business models around.
Now one of the biggest recurring income stream is real estate or property. I personally have 1,200 tenants in my management and development and over the years it has made me a lot of money and accounts for millions of capital. It’s a great asset class, It goes up in value pretty consistently, It’s necessary, It’s useful and It lasts hundreds of years. It’s one of the most powerful asset classes you can invest in.
Finally, we have the stock market. You can invest in and create recurring income streams from ISAs, funds or bonds. Usually, you’ll receive a 5% ROI that is retty reliable, sustainable and scalable. But you can also invest in individual companies if you do your research and see much higher returns. I bought a company called THINK Education for £5,000 in 2008. That company did £11 million in 2016. Buying existing businesses is a great way to create an asset that produces recurring income.
So there you have it, a number of different recurring income streams that you can start, grow scale and systemise so that you can reapt across more and more asset classes to create multiple income streams.
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- The Rules to Recurring Income – Part 2 - 30th November 2021