You’ve read the sales letters, heard the audio sales pitches, and seen the books pushing the idea of multiple streams of income. Gurus of information marketing maintain that you can become wealthy when you divide your efforts and capital into multiple areas. It may sound good at first. After all, don’t all of the financial experts recommend diversification of your portfolio? That’s pretty much the same concept, right? Wrong.

Many of these “get rich quick” programs recommend investing in real estate, stocks, and you own Internet company in order to “maximize” your earning potential. A diversified retirement plan is one thing, but building three separate businesses – and succeeding at all of them – is something else entirely.

When you diversify your assets, by purchasing your own home, and then splitting your money up between mutual funds, stocks and bonds, and other interest-bearing investments, you make the most of the high-performing investments and protect a portion of your assets when others go south.

This is a not multiple stream of income. This is what you do with the income once you have it.

Multiple streams of income really means you are running three separate businesses. Most people barely have time to focus on one business, let alone three. It’s not just your time that is split up. Your creative energy, your capital, your credit rating, and your goodwill from vendors and business associates is also divided between your multiple businesses.

While you most certainly can become wealthy from real estate, investing in stocks, or building your own successful Internet company, you will only succeed if you focus your efforts on one business. It takes time, focus, and a desire to make money in any one of the multiple streams of income so often recommended by self-proclaimed gurus.

Learning three businesses, and then trying to run them simultaneously is a recipe for disaster. You will become sick with exhaustion and worry, may end up destroying important relationships, and you are almost guaranteed to go broke trying to support three start-ups.

The concept of multiple streams of income is a phenomenon that is only taught in information marketing circles. You will not find a college or university that recommends you get an accounting degree, a law degree, and a medical degree – all at the same time!

Ask around. Search online message boards and forums. You will quickly find many stories of people who bought into the hype of multiple streams of income and ended up declaring bankruptcy. In recent years, people lost their shirts because of the real estate downturn. In the late 90s, many lost a fortune in the stock market when it took a dive.

When a market is up, everyone wants in. It is always easier to make money in an up market. People with little or no experience can usually do okay, or even make quite a lot of money, because the success of the market carries them through. This is why the gurus selling books and programs promoting multiple streams of income do not have to work that hard for the sale. If anyone can do it, you can too, right? Wrong.

The problem is, and this is a big problem, when the market sours, you have to rely on your expertise and savvy to survive. If you just got into a market in order to “get in while it’s hot,” you probably don’t have a clue as to how to make a go of it during the lean years. 

Now let’s take it one step further. Let’s say you now have three or more businesses just like this. Three businesses you started because the market was hot. Three businesses for which you have invested countless hours of your precious time and stacks of your hard earned money. Three businesses that you haven’t a clue how to run when it’s going well, let alone when the ship is going down.

Not a pretty picture, is it? Just the thought of it is enough to make give you an anxiety attack. Imagine if you were actually living it! Unfortunately, too many people are living this nightmare because they bought into the myth of multiple streams of income.

The promise that you will “get rich quick” is can be hard to turn down. The “gurus” claim that if one stream of income can get you “X” amount of dollars, why not go for more than one stream of income to triple your revenue?

The concept appears logical on the surface, but does not take into account the massive amount of effort it takes to start, maintain, and succeed with more than one source of income. Trust me, there is nothing quick about succeeding in business.

The “get rich quick” mentality shows up in the hot markets. But it is the dedicated entrepreneur who has the knowledge, gumption, and persistence to really make it work no matter if the market is up or down.

Trying to make multiple streams of income work for you is like trying to become the best professional hockey player, football player, and basketball player, all at the same time. Most of us humans can only focus on one area in order to see success in our lifetimes. A superhero may be able to pull it off, but even then he or she would have to be in more two places at once.

Sure, some people have succeeded using this business model. You’ve probably seen their testimonials. But there are more stories of stress and destruction than success stories. Yes, if you look to the wealthiest people on the planet, they have multiple streams of income. They also have CEOs that run each company, and a team of advisors who keep track of all of their companies for them.

Successful business owners know their business inside and out. They failed more times than they succeeded, and learned from their mistakes. They have been at it a long time, and have the connections, cash, and collateral to prove it.

The concept that you would be able to purchase an information product and learn three different businesses at the same time is just plain nuts. Not only are you setting yourself up to fail and fail badly, you are also setting yourself to feel frustrated, dejected, and possibly even depressed.

When we fail at something that was supposed to be “fail proof” or a “sure thing,” the only option is to blame ourselves. The “gurus” know this, and capitalize on it by trying to sell you more products about how to improve your mindset.

You probably already know how hard it is to split your time up between your family, social circle, work, and business endeavours. You also know that you can’t really be of any value to your partner, children, staff or boss, or friends if you are stretched too thin. Don’t let the wizard tell you that you need this magic potion. Remember, it’s just a man behind the curtain.

Instead, focus all of your creativity, time, and capital on one business you feel passionate about. When you place your attention on long-term happiness versus short-term gains, you always come out a winner.

Posted in Create Wealth, Success, Business, Money, Personal Growth