The Do’s and Don’ts of Managing Multiple Income Streams

In my work with thousands of emerging artists, I’ve found that so many artists are trying to make a career out of only one stream of income. Whether they’re selling their art on social media accounts, on their own website, or at in-person venues like art shows, they end up beating themselves up about their inconsistent, low income.

With this type of work, it’s so important to escape this situation, because sustainable income does not come from one revenue stream alone. Creating additional income streams is the best way to make a sustainable living as a professional artist.

If you haven’t yet, make sure to read my blog post on how to figure out how many streams of income to have in your art business. The tips in it can help you ensure financial stability and growth for your business. 

Let’s talk about the do’s and don’ts of handling multiple income streams that can make you transform your own business from a side hustle into a full-time job. 

Do’s:

1. Diversify Your Income Sources:
   • Carry out multiple passive income ideas such as POD (Print on Demand), licensing, teaching, and selling original art to create multiple income streams. These are some of the most effective ways to make passive income because once you’ve gotten them set up, they will continue to bring in money without extra effort.
   • Consider wholesaling, retailing on platforms like Etsy, and using Amazon KDP for self-publishing to bring in extra income.
2. Strategically Use Your Art:
   • Make the most of your creative process by repurposing the same artwork across different income streams. This can help you maximize your art’s value and reach.
3. Understand Your Cash Flow:
   • Track your expenses and income on a quarterly basis to manage the cyclical nature of your business. For example, if you find that your online sales dip during the summer, that can give you some insight about how to best supplement your income.
   • Set aside excess funds in a money market fund or similar to grow your savings and prepare for lean periods.
4. Build a Solid Foundation:
   • Know your style and target audience, and have a unified body of work to easily transition into new income streams.
5. Manage Finances Wisely:
   • Open separate bank accounts for profit and taxes to avoid dipping into these funds.
   • Use profit distributions to pay off debt and avoid spending too much money.

Don'ts:

1. Rely on a Single Income Stream:
   • Avoid focusing solely on one income source like art licensing, as markets can fluctuate and payments can be delayed.
2. Reinvest All Profits Back into the Business:
   • Do not reinvest all your profit distributions back into the business. Use them to pay off debt or save for personal use.
3. Ignore Financial Planning:
   • Don’t neglect to plan for your expenses and income. Failing to do so can lead to financial instability, especially in cyclical businesses.
4. Overlook the Importance of Separate Accounts:
   • Avoid keeping all your funds in one account. Separate accounts for profit and taxes can help manage finances better and reduce the temptation to misuse funds.
5. Neglect Building a Large Body of Work:
   • Don’t skip the step of creating a substantial and cohesive portfolio. This is crucial for leveraging your work across multiple income streams.

Following these steps will ensure that you’re on the right path towards a thriving art business that loves you back. The more consistent income streams you build, the more of a steady income you’ll have.

If you’re looking for more advice to help your business thrive, check out the Art + Audience Podcast, where I talk with successful artists about how they got to where they are today, and share what I’ve learned from my experiences in the art industry.