I agree that multiple streams of income give you more security, similar to how diversifying your investment portfolio to classes of assets that don’t correlate too highly.

However, I disagree that this means necessarily that you should diversify to physical, digital, and services.

For example, you might offer consign services in one industry, and coaching services in another. You can sell ebook guides on how to optimize your storage space at home, and on how to furnish an office on a budget. You can create decorative products to sell on etsy, and dog toys.

The point is to think about who your ideal customers are and when they’re likely to buy or to hold off; then try to serve different audiences that may not stop buying at the same time.

Another consideration is that spreading your efforts on things that are too dissimilar can result in being inefficient, needing to learn more things in completely different areas.

The bottom line is that if you can diversify your income sources by selling similar things to different audiences, that’s likely to be the most efficient way of reducing your risk.