Diversify,diversify.....really?

14 years ago

My take is that you don't over-diversify. Have a few niches that you are really passionate about...and work on these on a long-term basis. Of course, these niches have to be sustainable and not just a passing fad, which will render your efforts useless.

From my past experiences, my main source of income doesn't come from all my websites, but only the few that I choose to focus on. Too many websites also means that you will need to expend a lot of resources...are you able to afford that?

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Meemo

14 years ago

I agree.. You definitely should over-diversify because then you spread yourself to thin but you definitely should put all your eggs in one basket.. think carefully about what niches would work the best for you and use them

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jasonmorgan

14 years ago

Diversity doesn't necessarily mean 100 web sites selling 1,000 products.

Think of it this way, you have 1 web site for a niche, you want to diversify your earning options so you sell a couple of products for that niche, run adsense and are building a list.

Now, that 1 website has 3 avenues of income. Visitor 1 might buy a product your selling, visitor 2 might click on an adsense ad, visitor 3 might join your list. That is diversity.

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teatree 14 years ago

Originally Posted by jasonmorgan

Diversity doesn't necessarily mean 100 web sites selling 1,000 products.

Agree. Diversifying is all about reducing risks, so think about what risks there are to your business and then take action to reduce them.

Here are a few risks off the top of my head:

1. Google not ranking you or de-indexing your site. Solution: take the trouble to make sure you rank in Yahoo and Bing too, don't just optimize for Google.

2. Amazon deciding not to do business in your state. Solution: sell through Commission Junction and other affiliate vendors.

3. Something happening to your Adsense account. Solution: don't just monetise with Adsense, have Amazon on there too, and try out other advertising such as Infolinks.

4. The product you are selling goes out of fashion, and traffic and sales dive. This is the only one where you might need more than a few sites. But then, if your domain is a generic one, say "fridges" rather than a specific "XYZ brand fridge model number 12345", then you can easily zap on another page with the latest fridge model.
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CliveG

14 years ago

Unless you are doing something odd I suggest that you diversify in such a way that if you lose one source of income totally you feel pain but not too much and if you lose two sources at the same time you do not starve.

For me that equates to five income streams.

But note, 100 websites all with Google AdSense income is just one income stream, not 100 - if Google ban you you lose the lot!

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Robert Puddy

14 years ago

the phrase "dont put all your eggs in one basket" is a phrase made to keep you safe, not make you rich

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jacksonlin

14 years ago

Online, they key is to diversify TRAFFIC SOURCES!

Work on making one your main hitter, such as learn PPC, SEO or something like that. Then start getting other sources of traffic and then make your other sources of traffic a heavy hitter also!

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reynoldscorb

14 years ago

Originally Posted by sloanjim

We keep gettign told "not to put all your eggs in one basket" "diversify, spread your isk..be in as many niches a spossible, have auto blogs, auto websites, sell thousands of affiliate products etc...

BUT I seriously wonder if this is the way to do it? I mean dabbling in 100 little businesses dorsn't that mean 100 headaches, 100 things that could and will go wrong? What about all the work? Not to mention you can't possibly know enough about 100 niches...

I am starting to think do many spread them-selves too thin? Could you make more money, easier in one business than dabbling in dozens? I am beginnng to think so.

I completely agree. I noticed a few month ago I was "spread too thin" and started to change how I operate. Currently I only take one project on at one time. I find much more success that way.

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bkilela

14 years ago

I tend to agree with this phrase the danger is how much diversification is optimal. That is a question for another day.

As an IM you need to be focused on a few ventures I would suggest three niches would do. At least you will still have control of your businesses and manageable headaches to take care of.

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BCJason

14 years ago

Originally Posted by sloanjim

hmm...but most of the real successful businesses and people have one big business. Or they stick to one industry. This is my point. Less stress and more profit by building one big bizz rather than diversifying which is what many I.Mer's do.

That may appear to be the case but most people that are successful in traditional business that I know of will have a diversified portfolio. Wether they're investing or into real estate or smaller start ups.

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ryanlucht

14 years ago

Yeah, really, diversify.

I started making money with AdSense. Hit $1k a month, then decided to start working on other stuff. Good thing I diversified and started building new sites and new income streams, because just a few weeks ago my AdSense account was closed, and it doesn't look likely that I'll get it back. Thats $1k a month gone right there, but I can make it back easily. Because I diversified.

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tom03 14 years ago

I think diversifying can be a great thing. You need to think about what might happen if your search rankings drop, can you still make money? What if your niche becomes non-existent.

Definitely do not spread too thin though. I like trying different methods to make money as I can always fall back on one. Affiliate marketing, product creation, and design/coding services are 3 methods I use to make money. I also try not to focus on only one niche.
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mlord10

14 years ago

Diversification clearly means different things to different people. Personally, I have tried both the "one big site" method and the "50 little sites method" and found that somewhere in between is the best fit for me.

In my personal opinion, it is best to focus on 3 or 4 niches, and build a targeted email list of subscribers in each niche. This way, you have 3 or 4 different streams of income that you can build up.

Often times having too many websites, or being involved in too many niches can be detrimental, because unless you have a team of people around you things tend to fall apart.

I would personally recommend that someone find 3 or 4 niches that are profitable, and work them for all they are worth. By doing this, you create 3 or 4 different income streams.

This is enough to "diversify" without overextending yourself.

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Shaunman

14 years ago

Diversification clearly means different things to different people. Personally, I have tried both the "one big site" method and the "50 little sites method" and found that somewhere in between is the best fit for me.

In my personal opinion, it is best to focus on 3 or 4 niches, and build a targeted email list of subscribers in each niche. This way, you have 3 or 4 different streams of income that you can build up.

Often times having too many websites, or being involved in too many niches can be detrimental, because unless you have a team of people around you things tend to fall apart.

I would personally recommend that someone find 3 or 4 niches that are profitable, and work them for all they are worth. By doing this, you create 3 or 4 different income streams.

This is enough to "diversify" without overextending yourself.

I agree here. I am amazed when I hear the $2/day * 100 websites = $200/day argument.

Diversifying your income streams and niche can make your income more stable and secure, but I would say 5 websites is probably the cutt off in my opinion.

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IRichie

14 years ago

Yes, but it does not mean that you should try all the niches. It means, make different websites, so that if one of your websites get hacked or you lose revenue for any reason from it, you do not lose everything. That's why.

I completely agree that you should not put all of your eggs in one basket.

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Anonymous Affiliate

14 years ago

Absolutely: it's best to focus on one meaningful and potential-filled project at a time than to juggle 5 half-assed sites at once.

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Diversify,diversify.....really?

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