We have heard time and time again about the saying do not put all your eggs in one basket.  This means we have to diversify our sources of income regardless of whether we do our business in the real world or on the internet.  It seems changes in the business environment on the internet are a lot quicker to happen than doing business in the real world.

The need to diversify is essential to protect ourselves from the negative financial consequences if we encounter losses in one venture. It is wise that we try to soften any financial blow by having many streams of income working for us, so that if one of them stop making money we still have others making money for us.

Let’s take an example selling on eBay.  In 2008, eBay changed the way digital information products are being delivered by halting digital products’ delivery by downloadable links.  Many sellers were affected by this policy and several decided to stop altogether selling information products on eBay.  You will wonder how these sellers survived if they do not have other income streams.   As eBay can change policies  any time, sellers should be prepared to adapt to these changes.  The challenge for internet entrepreneurs is to create multiple income streams for their financial security and peace of mind.