This is another My Experience podcast.

Today I talk about a rule I follow and refer to as the 2 + 1 rule. I describe the scenario of how I learned the hard way - that it is important to diversify your income streams, how this rule works and the lifecycle of the primary and secondary projects. Then I mention some ideas and types of work I've used for secondary project income. Then at the end I provide a recent addition to this rule - again something I've learned the hard way.

• Why it's important to diversify your income
  • How I discovered this the hard way
    • Hit $0 income per week for several weeks/months before finding new work
• What it is and how it works
  • Goal is to not hit $0 income for a week (unless you are on vacation)
  • Start with #1
  • Add as many #2 projects as you can (get at least 2)
• Life cycle of projects
  • #1 either goes away or turns to #2
  • #2 usually can increase some when no #1 is around
    • Or turn into a #1
  • #2 also go away so have to keep adding them
• Ideas for you in finding good #2 sources of income
  • Create a product
    • SaaS product on your own
  • Content Creation (also helps build your expertise in general)
    • Find ways to get paid for (or do for free for marketing)
      • Blogs
      • Articles
      • Whitepapers
      • Training
      • Video courses
      • Podcast
    • Small projects
      • Work for other independents
        • Find by networking with existing network (always need to be keeping up with and expanding)
        • Possibly begin a relationship via social network
      • Maintenance work (plan ahead like Avonelle does or ask previous clients) - keep good standing with clients
        • Technology upgrades
        • Tweaks or small feature additions to past projects
• (new addition to this rule) Stay on top of it
  • How I discovered this the hard way
    • Did not hit $0 per week, but put up with half normal income for months
      • Waiting on being onboarded as a vendor too long (didn't end up working out)
      • Income was paying the bill and I forgot the urgency I should have had to jump on finding #1 again
  • If #1 goes away and you move to using #2 projects more do not wait long before looking for another #1