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The Magic Cafe Forum Index » » Tricky business » » Sources Of Revenue In Your Business Part 2 (2 Likes) Printer Friendly Version

Mindpro
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I thought in light of the current times it would be prudent to try to once again revisit a topic I started that got derailed by a troll and then locked at the time ( https://www.themagiccafe.com/forums/view......forum=44 ) regarding having additional and multiple revenue sources in our entertainment businesses.

Now, more than ever I think this can be the difference of sink or swim, survive or struggle in times like this. What and how many sources of revenue do you have in your business? Has this current situation caused you to look at, re-evaluate or change your current model? Has it caused you to add any new revenue streams recently?

We often fall into the thinking that as performers all we really have is our performing live for our income. Unfortunately, this puts all your eggs in one basket. Those that look beyond this are often better prepared for such times, not to mention other benefits even under normal circumstances. Let's share and discuss.
Gerry Walkowski
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Mindpro,

I have and will always love the idea of multiple streams of income.

I can't recall now if this one idea has been discussed before, but it's the whole idea of having some of those streams outside of a particular field.

Here's an example. If a person is a magician, is it really wise for all of his or her revenue streams to revolve around just the world of magic?

To me, a better diversified plan would be to have other revenue streams through investments like real estate, etc.

What are your thoughts on this?

For me personally, I have a job, a good pension waiting for me today if I want to retire, mutual fund investments, social security income, show income (well, not right now Smile),etc.

To me, something like this is more balanced rather than just having all your eggs in one basket like MAGIC.

I believe magician Ken Scott does (or at one time he did) D.J. work besides his magic shows. I thought that was rather smart because his other revenue stream was completely outside the magic world.

Anyway, I'd love to hear your thoughts on this when you have the time.

Thanks,

Gerry
Mindpro
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Hey Gerry! If my thoughts are correct, I think you are on the east coast here in the states (I'm not sure why I seem to think this) where things are hitting quite harshly recently. I hope you are doing well with everything that is currently going on.

I appreciate your thoughts and question. While my question and thoughts were posed more about performer's businesses, you pose a greater picture I also believe in as well. Yes, I feel we need multiple sources of income in our entertainment businesses, but also in life.

I believe if we build our businesses correctly we can ultimately have both. In my businesses, I have about 12 different sources of permanent income and several others that I can implement from time to time or as needed. Also, like you, I have invested in real estate, stocks, IRAs, other businesses and ventures both inside and outside of entertainment including a radio station, mobile businesses, and the successes of others I've believed in and partnered with as well.

I personally have found that I prefer to have many of my things related, which most seem to be part of entertainment. However, I am open to others outside if it fits my criteria. I like both short-term as well as some long-term investments. I also love passive income too.

I think this is why I believe (magicians for example) performers should be more than just performers and look at the greater picture of entertainment and the entertainment industry as there are so many other great ideas and possibilities available to us.

I did a podcast a few years ago and the host asked me if I had $30,000 to invest in something today, what would I do with it right now? Without hesitation I said entertainment. I have had the greatest return of almost anything from entertainment. This is why I have so many off-shoot entertainment businesses such as a production company that has produced events, concerts, and live productions for over 35 years, including many touring productions, several of which I still do annually, an entertainment fundraising company, 5 agencies over the years (specialty and full-service), a large talent broker company, I am still a promoter (of many types of entertainment, especially comedy - Blue Collar Comedy Tour, Blue Collar Rides Again, Ladies Of The Night Comedy, Southern Fried Chicks Comedy Tour), all in addition to my coaching, consulting, training and educational resource releases. For me I like it all related to my interests and area of specialty.

Others I've done just for straight investments (real estate including homes, apartments, mobile homes, commercial, stocks) but they have no emotional connection or interest to me other than ROI. I also like building up businesses and selling them for profit, which I've done for myself as well as for others as well.

Like Ken, I was in radio for nearly 25 years, but to me, it was part of entertainment as well, and still related to my interests. It served a purpose in my life at the time from which I till reap the rewards.

So, yeah I think it is important to create stability in an industry which can be unstable the way most performers chose to operate. Few seem to strive to go beyond the surface level in performing in entertainment.
Gerry Walkowski
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Thanks Mindpro,

Yes, I am on the east coast and we're pretty much on lockdown like many neighboring states.

Thanks, too, for being so honest and telling us a bit more about your life, both inside and outside the magic world. That was very inspiring.

Yes, I realized that your original post was all about the entertainment side of a person's business. At the same time, I think it's helpful to have this other discussion, like the one we're having.

I know many magicians who are 100% dependent upon magic as their livelihood, and they're just not prepared for any type of uncertainty, especially when it comes to health care expenses and the loss of income. And that was true even before COVID-19 came along.

Hopefully others will see that while it's important to have other revenue streams inside their business, it's equally important to have a way of generating other sources of income for a more balanced portfolio and basic long term survival.

PLEASE forgive me if I wandered a bit too far outside the scope of your original post.

Thanks,

Gerry
thomasR
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“I know many magicians who are 100% dependent upon magic as their livelihood, and they're just not prepared for any type of uncertainty, especially when it comes to health care expenses and the loss of income. And that was true even before COVID-19 came along.”

I would say the majority of people have 1 profession. Majority may not be as true today as it was in years past, but the idea that all or a most of your income comes from 1 profession is not unique to magicians.

Of course that doesn’t mean you shouldn’t have multiple streams of income... it is certainly a very wise choice to make.
Dannydoyle
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Using this crisis as a benchmark is idiotic. It has taken down millions.

The large percentage of the county has single stream income.

If you haven't prepared for a heath care emergency that is very bad. But again a large portion of the country simply has not.

It won't change any time soon either.

In the end the key to survival, performer or not, is to save money. I mean is this really a big secret?
Danny Doyle
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<BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell
thomasR
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But Danny I really needed the “Aztec Tomb” illusion... its a career maker!
Dannydoyle
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There ya go.
Danny Doyle
<BR>Semper Occultus
<BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell
Mindpro
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Quote:
On Apr 12, 2020, Gerry Walkowski wrote:
I know many magicians who are 100% dependent upon magic as their livelihood, and they're just not prepared for any type of uncertainty, especially when it comes to health care expenses and the loss of income. And that was true even before COVID-19 came along.


At the same time, I think it's helpful to have this other discussion, like the one we're having.



Gerry, I couldn't agree more. This is something that is true for over 95% of entertainers I am familiar with through all my endeavors, is that their "business" is solely dependent on their performing. This poses the question I first asked in this thread (about if you really had a self-employed job or a business?) https://www.themagiccafe.com/forums/view......forum=44

This is also a topic that many I work with in my coaching and consulting seem to be most interested in - especially during or right after periods such as 9/11, the 2008 recession, and of course now with COVID19. Events and times like these really shine a spotlight on just how healthy or uncertain your business is. Most tell me they never want to be in that position again.

Unfortunately, as it pertains to their entertainment business and operations most are very short-sided and can't see much beyond their performing. And magic is among the most unique when it comes to this.

I was one of the originals in the beginning of what is now the Mobile Disc Jockey industry. Long before it was an actual industry, there were a small handful of us that began what it now has become. They too faced a very similar position to magic and magicians, however many of us and the industry it spawned realized very early on we didn't want it to be this way (the entire business dependent on only our performing.) Several of us came to this realization and intentionally looked for ways to prevent and avoid this, and to scale it into something more than just ourselves.

It could be said they (DJs) were on the same plane as magicians but chose not to settle with that and elevate themselves to something bigger than just us. It was quite an interesting and exciting time. When the first $1,000,000 DJ entertainment company achieved that level, we all celebrated as it impacted the entire industry. From that point on everyone looked at their DJ business as just that - a complete business, not just a self-employed DJ.

Magic has, for whatever reason, never attained that or even seem to desire to.

I work with many kids entertainers and unfortunately, most are very short-sided and unknowledgeable to the industry other than just as it pertains to their small world as an independent performer. They are actually blown away when I share with them and show them how they can be operating a six-figure or multiple six-figure business. Most will say they would have never figured it out on their own.

Many part-timers just want it to be just part-time side thing for them, and of course, that is just fine. Limited thinking and operations in an abbreviated or limited capacity likely works perfectly for them.

However, it's the guys (and gals) that want to attempt to be larger or go full-time that seem to fail to adjust their mindset, knowledge, and approach and retain that part-time, limited capacity, and understanding.

I agree this is a great topic and the timing couldn't be more significant for many.
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