For some reason I’m wide awake now at 1 in the morning and don’t really feel like working on anything affiliate related, so it’s blog time. A question pops up (in my head at least) all the time : do I diversify and make smaller amounts of money through many sources, or focus on dominating one particular area in the industry (ie PPC affiliate marketing)? There’s both pros and cons to both sides of the argument :
- There’s so many ways to make living online it’s absolutely insane. There’s people in every area of the area making millionaire incomes. I know bloggers that do tens of thousands a month. I know affiliate marketers that do six figures daily. I know people still making a solid six figures a month in Myspace. I know SEO people that dominate the market without paying a dime for advertising. There’s viral sites out there that make a ton…the list goes on…and on…and on. Tapping in a little into each market can really add up fast.
- Security. If for some reason one industry starts to rapidly decline, you have a bunch of other backup revenue streams to keep the food on the table and the bills paid.
- More potential to strike gold. The more things you do, the higher chances you have of stumbling upon something really nice. Believe it or not, many highly successful entrepreneurs got their kickstart to success by getting lucky. You could be the next one to find that completely random diamond in the rough and then scale it like crazy.
- Like the heading says…domination. If you can dominate an industry, who cares if it dies out in 5 years, you can easily make enough income to stash away in a CD to leave you set in 20 years. Take $300,000 of it to live off of for the coming years and then withdraw your millions and live off that while you test other areas. Domination is where the money’s at.
- More time to work on single projects. If you diversify, you may do SEO twice a week, affiliate marketing twice a week, and blogging twice a week. My focusing on just affiliate marketing, you get 3x the productivity and then 3x the results. It takes less time to test and find what works, and less time to scale it.
What’s the right answer?
Well, I’d like to know the answer to that myself. I’d have to go with domination, but the internet is so extremely interesting that all these other industries attract me. For instance I have ideas of a couple viral sites that I want to get working on, because one of them may hit the mark. And when you hit the mark with a viral site…viral traffic is the best traffic there is. I also have that SEO project I mentioned a week ago that I’d like to develop. So many things to choose from and only 24 hours in a day. For now I’m keeping most of my focus on affiliate marketing though, as I want to dominate the industry before I start to back off on it and focus more in other areas.
Let’s go further down the rabbit hole…
Since I’m in a blogging mood – let’s take this a step further. Affiliate marketing – diversification or domination? What’s better, $100/day in 10 niches or $1,000 day in 1 niche? Time to look at the pros to each end of the spectrum and evaluate :
- More security, this is the most obvious pro. Some niches tend to be very volatile, and what is making us a lot can quickly dwindle down to nothing pretty fast sometimes. With more niches, you have more backup in case one dies out.
- Soooo many choices. What’s stopping you from making $100/day in 50 different niches? I can tell you there’s affiliates profiting out there in more than 50 different products. Focus on a smaller scale and broaden your portfolio of offers.
- Plain and simple, it’s where the money is at. If you can find a niche to dominate, you can make some BIG bucks. Shoemoney was famous for dominating ringtones back in the day…how much do you think he was making a month? Probably more than most full time workers make in 10 years. Niches are out there to dominate, you just have to find a working strategy and perfect it (or come as close as possible). In a scaled out campaign, smallest changes can make the biggest differences.
- Love. Start making $10k/day on an offer and see how the network or merchant treats you, haha. Not really a factor but fun to think about…after all you could just be breaking even…
What’s the right answer?
Again, don’t expect all the right answers in the world from me. Don’t expect all the right answers from anybody for that matter. Let me pull out a quote from Pumping Iron by the great man himself, Arnold Schwarzenegger :
Franco is pretty smart, but Franco’s a child, and when it comes to the day of the contest, I am his father. He comes to me for advices. So it’s not that hard for me to give him the wrong advices.
Now I’m not saying that anybody there is out to get you. I’m not saying that big affiliates out there give people wrong advice (because there is some GREAT advice out there in blogs and forum posts), a lot of times they’ll just bullshit their way around something and you’ll think you’re hearing good advice, but it’ll get you nowhere. Can’t blame them at all either, I’m just trying to say don’t switch your strategy just because I say “domination sounds better”.
Now after that little tangent, I do tend to prefer domination. Try and use a diversified strategy to pull different profitable offers, and then judge which niches can be scaled more. After that, it’s all just up to how much they can be scaled.
Or maybe…personal preference?
In the end, it’s all going to come down to what you prefer doing. Some people may be most productive spending all their time in one area, while some may get burned out way too fast. For me, I’d like to spend maybe 4 days of the week on affiliate marketing, and then a day or two developing my viral/SEO sites to take a break from the many stresses of PPC. Plus of course blogging has become a priority for me as well, so that’s almost a daily thing now.
Alright, enough writing for now. Have a good one.