The Philosophy of Diversifying Your Income
In the mental health field, we often see a lot of buzz words and statements that eventually lose their meaning after being thrown around too often. It definitely seems that "Diversify Your Income" is a magic statement that is coming up across the many mental health disciplines. It is likely because clinicians and therapists are burning out across the field in droves based on the traditional therapeutic model and looking for ways to create a sustainable career. In this post, we are going to demystify the term.
What is Diversifying Your Income?
Simply put, diversifying your income is learning not to put all of your eggs in one basket. Many clinicians have been trained to offer therapy only in their practices. In a way, this is a traditional model of therapy-based services. Though the field of counseling is a relatively new field, some of the traditions have not evolved with the times.
When a practice or therapist diversifies their income they expand ways they are bringing in money to their business. This is focusing on bringing in funds in ways aside from direct services. In a sense, a practice can have multiple streams of income that go beyond face 2 face service.
How is Diversifying Your Income Beneficial?
When clinicians set up their practices with multiple income streams, they experience many benefits, including the following:
1. Reduce Caseloads
They provide themselves the opportunity to see smaller caseloads in direct services because they are generating an income in other areas.
2. Opportunity to be Creative
They have an opportunity to step out of the box and offer innovative solutions designed specifically for their target audience.
3. Possibility of Increasing Revenue
When looking at millionaires and billionaires and how they generate their wealth, (those who did not start with generation wealth) they typically built their wealth through various products and services. Direct services alone, can bring in six figures, however, leveraging your signature interventions and styles into products gives you the opportunity to expand revenue beyond the hour reimbursement schedule.
When is Diversifying Your Income is NOT Beneficial?
This business model will not work for everyone. Many people have difficulty switching to new age models of their business. Diversifying requires taking a leap to offer something that goes beyond the traditional services. This was not taught in grad schools and may feel uncomfortable for some. It may not be beneficial if:
1. You Don't Want to Dedicate the Time
You'll have to unlearn and relearn new systems and mindsets. It would require you to do things that you weren't taught in graduate school and thinking about the profession in a different way. On the front end, it can be very time-consuming.
2. Traditional Model Has Been Working For You
If you're okay with what you have and the traditional model is working for you, both financially and emotionally then consider why you're changing it. Not everyone has to diversify.
Ways to Diversify Your Income
There are many ways you can create a diverse income. And this can go beyond the therapy field as well. Many things people talk about are creating several streams of income, through property management, and investments. I will discuss that here, however, my focus is showing therapists how they can create streams of income utilizing the skills and knowledge they already have from working with people.
Purchase stocks or make investments
One way to diversify your income is through making investments in the stock market. This can be a risky way to raise money but can pay off in the long run. Many people feel uncomfortable with this because the stock market can be a risky place. Some stocks pay out dividends and if enough are purchased they can generate a monthly income.
You could also purchase property as an investment. As a mental health professional property/ commercial property could be really helpful to the profession. Many times professionals who are virtual look for places where they could rent an address or have a drop-in office.
Professional Writing
Many Mental Health Professionals hold a professional degree. Many degree programs had a strong writing component built-in whether this was a thesis or a dissertation. MH Pros can recycle and utilize this skill to create ebooks or even ghostwrite for other professionals. Some professionals have even used their skills and knowledge to write dating profiles as a service.
Coaching and Consulting
This is often a hot and divisive topic among licensed MH Pros. While there are many coaching certificates and a code of ethics for the coaching profession it is a largely unregulated field. MH Pros have the skills to provide coaching services. ← This however would be another direct service, requiring you to be client-facing.
Consulting is similar to coaching however you would provide a more direct and guided service. In the field of consulting you are educating and advising on certain topics. This too would be a client-facing service.
Course Writing
Course writing is a way you can take your signature interventions and create an all-in-one program that people can buy to self-guide their way through a particular issue. There are many ways to create courses. You can add direct services to courses as well. You can also write courses for other people too.
And SO MUCH MORE
There are really many ways you can create additional income. This is where creativity kicks in. From clothing to self-care products, podcasts to retreats. There are many ways you can generate funds in the therapeutic realm.
Diversifying Your Income For Longevity in The Field
At this time the Mental Health Industry is in a crisis. There is a high demand for mental health services but a shortage of qualified professionals to meet the demand. In addition, though the demand is high, reimbursement is often low. Not paying professionals who hold an advanced degree their value creates an additional disparity.
There are many reasons why someone may choose to diversify their income but perhaps one of the most impactful is to provide a professional with the possibility of longevity. Most people get into the field to help others and make a living. Diversifying keeps qualified and quality professionals in the field and reduces their burnout.
What do you think?
You've likely heard this term before and attempted to decide if it was for you. It may even seem scary with all of this information. I talk about diversifying as a way to reduce burnout while generating revenue for clinicians. If you're interested in hearing more, sign up for my email newsletter where I share more information on how you can get started with diversifying and reducing or preventing burnout.
