If you subscribe to the concepts of “The Long Tail”, like I do, then you know the future of business isn’t going to be one block-buster, out of the ball park hit. It’s a lot of smaller hits. You’ll sell less of more. That’s where the long tail term comes from. It’s a sweeping curve that ends up with a long curve out. In the past we used to think about the bell curve, the 80/20 rule, and just shot for the middle of the market, where the most was. Now the concentration is on that long tail at the end of the graph.
In fact, the 80/20 rule isn’t as important as it used to be. With the Information Age, the new “long tail” rule is there is gold at the end of the bell curve. In fact, eBusinesses like Netflix find that they don’t make money off of 20% of the products. They make it off of 98%. That’s how the digital ease of fulfillment has changed how we do business.
And that’s the fundamental reason that I decided to create 5 sources of income. Four of them are passive or semi-passive and only one is active income.
I see people who start multiple businesses and then quickly burn out. Typically there is one of two fundamental problems: (1) The multiple businesses require too much involvement. In other words, you aren’t creating PASSIVE income, you’re just starting lots of jobs for yourself. OR (2) The passive ventures are new to you. You have a big learning curve ahead of you. Even the most passive income almost always starts with work.
The bottomline? Start with focussing on just one new stream of income type. Learn how to do it. Focus. Once you get that dialed in, expand.