5 Steps to Increase Your Income
Last week I had a lot of positive feedback on my blog titled, “You can’t budget your way to becoming a millionaire.” I explained why you need to focus 95% of your time earning more money, not cutting costs or budgeting.
But I never gave any advice on how to actually do it, and since I hate when people identify problems without providing solutions, this week’s blog focuses on practical steps you can take to grow your income.
Step 1 - Focus on it
This may sound obvious, but what you don’t focus on doesn’t get attention. If you want to grow your income, then give it attention. Set a goal - not an vague goal like “I want to make more money,” but a specific goal like, “I want to earn $6,000 more per month.”
Then do the math.
Figure out how many deals you need to close to get there and work backwards to understand the daily metrics necessary to close that many deals.
Which leads me to my next point…
Step 2 - You need to be paid to grow revenue
If you’re an entrepreneur and the business is yours, then this one is obvious. No sales = no business.
If not, your income needs to be linked to revenue.
Why are some athletes paid tens of millions of dollars to do the same job as their teammates who make a few hundred thousand?
First, their popularity attracts more fans, and fans spend money. Second, they give their team a better chance of winning. And what does winning do? Attracts more fans.
More fans = More money.
In business, sales is the obvious choice to have your income linked to revenue, but it’s not the only one. Get creative.
Maybe you’re in accounting and have a network of people that will buy your company’s product or service. You should be paid for any lead you bring in that closes.
Or maybe you’re in recruiting. You should be compensated when your new hires affect the company’s top line.
Talk with management. See if it is a possibility. If it isn’t, maybe it’s time to create another income stream, but more on that later.
Step 3 - Learn to market, brand, promote, and sell
I recently attended Grant Cardone’s 10X Business Bootcamp, and he made a phenomenal point: “The best idea doesn’t win. The best known idea does.”
Why do Americans fly to places like Europe and China and eat at McDonald’s? Is it the best tasting food? No chance. But it is the best KNOWN food.
If people don’t know what you do, why you do it, how it works, etc, you’ll never be able to close business.
I’m a financial advisor, and I love coaching people on how to effectively get their money working for them, but if nobody knows who I am and what I do, nobody will ever become a client….not much of a financial advisor without having people to give advice to.
Step 4 - Understand how to close business
People shop with their heart, but they close with their head. You can get people excited about your product or service, but unless you can help them use logic and reason to justify their purchase, you’ll never close the deal.
And you don’t get paid to sell, you get paid to close.
Step 5 - Create another income stream
This is very important: before you consider creating another income stream, make sure your first income stream is stable. If you are a year into a new sales career and still ramping your business, it would be irresponsible to start a side hustle (unless you’re in a position where you can’t live without your side income).
Assuming income one is stable, you could wait tables, drive an Uber or Lyft, or sell personal belongings on Ebay to make some extra money, but I prefer to think about activities that will compliment your current job.
The goal should be to create parallel incomes where one job feeds the other.
Big time athletes do it all the time. Baseball players need a glove, spikes, bat, maybe batting gloves, etc, to play the game. Playing baseball is their primary revenue stream.
Say they sign a glove deal that pays them to wear a certain brand…stream #2. Then another company gives them spikes…stream #3. Then a bat…#4. Then batting gloves…#5.
Then maybe they are paid for speaking engagements that increase fan loyalty, which means more people love them, which means more people buy the gear they wear, which means their endorsement partners are happy and continue to do business with them….you see how this works.
Their primary income is baseball, and they leverage what they are already doing to make more money by creating complimentary income streams.
But sure, it’s easy for pro athletes, right? What about us lesser known people?
Let’s say you are a strength coach. You get paid to train people. That’s income stream #1. What does that entail? You teach people proper technique, maybe give nutrition advice, write training programs, and depending on your gym you may help other strength coaches learn new training approaches.
Since you’re writing training programs already, you can make a webinar on program design. Income stream #2.
Then you can cultivate an online group of people who like your training approach and call them your “Tribe,” for which they pay a monthly fee for access to training videos, pre-written workouts, and nutrition information (You’re providing it to people anyway.) as well as a Facebook group of built-in accountability partners. #3.
Other gyms may want to hire you to speak to them about your ideas and philosophies. #4.
Then you take a few private clients on the side. #5.
Without doing a ton more than you currently are doing, you created 4 additional income streams that all feed your primary income stream.
But make no mistake, increasing your income takes a LOT of work. None of this comes easy.
But then again, as the saying goes, if it was easy everyone would do it, right?
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