Online Business Diversification
I remember the day like it was yesterday.
The day iLearningGlobal told me they were going to shut down the Network Marketing wing of their company and in the process totally obliterate my entire online business.
The company just made a snap decision to end the Network Marketing part of their business. In doing so they wiped out every income stream their distributors had ever built up.
That was it.
A $6000/month income wiped out, right from under my nose – literally overnight.
It had to be one of the worst feelings I’d ever felt in my lifetime. All because I had nothing to fall back on. That was it, I’d spent years aquiring the skills to grow that income, and now it was gone I was left with nothing.
Nothing but the skills to start over. What’s the point Dave?
The point is you need a diversify your online business. If you know me at all; you’ll know that I like to focus on one thing at a time. While I believe in focusing your energy on one core business; it’s setting yourself up for failure.
Do wealthy investors put all their money in the stock market, or in precious metals or bonds?
They diversify by putting all their eggs in a small group of really strong baskets i.e. investments.
You need to do the same. I’m not a fan of running several businesses at the same time. But I believe in setting up several different businesses that run by themselves while you focus on your core business that requires your personal intervention to truly prosper.
This is my short list titled “Online Business Diversification”: (It’s quite detailed)
Niche Websites, Little Niche Websites…
Creating niche websites is one of the easiest, fastest and most straight forward ways of diversifying your online business. Websites are like assets, they produce cash flow. You build them or buy them, hold them for a while or indefinitely and then flip them for a large profit.
Much like any commodity, stock or other real world investment.
Niche sites however are slightly different. They are sites that focus on one topic in particular. They focus on one small to medium sized niche. A niche site could be one about gardening, dentistry, deck chairs or any other small-medium sized Internet niche.
Niche sites make their money via advertising or affiliate marketing, generally. All you have to do is identify a profitable niche. Build the site, publish lots of content and target all the keywords in the niche.
Forgot to mention; niche sites usually get all their traffic from the search engines so SEO is super important. The idea is to create every page/piece of content for the sole purpose of ranking in the search engines for a particular keyword.
Once you’ve covered all the keywords in the niche; you’ve successfully completed a niche site and it should produce a small amount of cash flow every month. If your niche site is getting 1000 visitors a day; it might yield $100/day in advertising revenue or affiliate sales.
To get 1000 visitors a day, you could rank 100 articles each for a keyword that gets over 3000 searches per month. With an expectancy of receiving 10% of all visitors so 10% of 300,000 = 30,000 visitors.
The point of this post isn’t to explain these business models in detail; but to simply expose you to the notion of them.
Branded Authority Sites
Authority sites, similar to niche websites are exactly as the name suggests; authority websties. Authority websites are fundamentally BIG websites that cover a broad niche. A niche like weight loss, health or technology.
Authority sites are sites like eHow, EzineArticles.com and Squidoo. They can even be sites like Facebook, Youtube or Digg. They’re essentially BIG websites that have a large following and hundreds or thousands of active users.
Creating an authority site or buying one is an excellent way to diversify your online business. However; authority sites require a lot more attention than niche websites. If you build an authority site right; you’ll have a brand. You can build them, buy them and outsource the maintenance.
Once websites are built, they only require maintenance; which can easily be outsourced. Again, authority sites can make money via advertising, sponsors, product sales and membership fees.
Click here for part two.