Don't put all your eggs in one basket
You probably know the saying, right?
It holds true for everything in life and of course it also applies on building your own online business. Diversity is important, so that if one thing tanks, you still have something to fall back on.
If you invest, you don't invest in just one stock, because if that one fails you have nothing. But if you have a diverse investment portfolio you will always have a few that will still make you money (or increase your savings)
When you are saving for your retirement, you aren't just going to rely on your savings are you? You're going to max out on your 401K and your Roth IRA and you may also invest and save. So that if one doesn't quite pan out as you hoped, you have a few more options.
The same goes with your online income, but it's perhaps even more important to diversify that as it can be so much more vulnerable.
Which areas do you need to pay attention to though?
If you have a site that only generates income off of advertisments or just affiliate marketing, this can be incredibly fragile. If anything happens in the market space or a law changes it could wipe out all of your income.
A few years back the cookie law was introduced and it had major implications. Meaning that cookies were blocked and you could no longer track your visitors and place cookies. Therefor no longer identifying your referral as your referral.
This could have been really damaging to a business that is run solely on affiliate marketing.
It turned out the be a lot less of an issue than that was predicted, however it could have easily ruined your affiliate business.
And with privacy laws at the forefront now, you never know what could happen in the future with regards to the ability to earn from affiliate marketing.
Therefor is generally a great idea to build up other ways of monetizing your site.
Think of selling advertising on your site or in your newsletter in the form of banners, guest posts and dedicated emails (solo ads).
If you have a targeted and responsive audience companies will pay to get in front of your audience.
Another thing you can do is to start selling products or services related to your niche topic. Sell ebooks, physical goods, add dropshipping or sell coaching/consulting.
If you are creative there will always be something that you can add to generate income.
It’s best to start now rather than to try when you are desparate and the money is no longer coming in from affiliate marketing.
In the worst case scenario you have an income to fall back on if one source dries up.
Best case scenario, you have just supplemented your current income.
Which is never a bad thing.
If you only work with one affiliate partner, because it’s so convenient. . . .
STOP IT RIGHT NOW!
Having just Walmart or eBay or Amazon is a very bad idea.
Companies will be subject to changes in the market too and even the most stable companies can suffer and even go bankrupt during hard times. And while Amazon might seem the most stable company around, even they could fall.
Or they could simply decide to bring their commision even further down or to stop working with affiliates completely
Making sure that you have your bets spread in this respect makes sure that when one company disappears as an affiliate partner (for whatever reason) you will always have back ups and that you don’t need to change your whole site the minute they disappear.
In my previous post I mentioned that you shouldn’t try to do too much at once, but when you have mastered one way, move on to the next.
SEO will always be a good starting point, but promoting via social media or even ads can give a that little extra edge that you need. Get you those much needed extra visitors and buyers.
But when you start promoting on media that isn’t yours, you run the risk of losing your audience. A facebook page was all the hype years ago. It would get you great exposure with your audience.
These days you even have to pay to reach your facebook followers!
When your organic reach is determined by a company whose sole objective is selling more ad space, then you are in deep trouble.
But more than that, when a particular medium falls out of grace (as they eventually all do) you don’t want to have your strategy to be dependent on that.
Can you imagine you do great on Instagram and spend all your resources there and then Instagram gets shut down. Then you have to start from scratch!
Wondering how to tackle this, read my post about launching your site to an audience you already built.
There is a reason WA offers you the space to build more than one niche site. Because let's face it, even niches are subject to trends.
If you have niche about paleo and tomorrow it is scientifically and irrefutable proven that paleo is the worst thing you could do for your health or weight loss, you lose your profitable site.
You want to make sure that once you have build up your first site successfully that you start building your second site. And when that site is established start building the next.
All the while never forgetting your other sites, but maintaining something that is established gets a lot easier at some point, especially when you plan well.
So get diversifying! Start with different ways and partners to monetize your sites, then start diversifying your promotional efforts and lastly start creating different niche sites!
How diverse are you at the moment?