Diversification is a Myth
Yep. I said it.
Diversification is a myth. At least the way people look at it in terms of working from home and passive streams of income.
For every IttyBiz that has four diversified streams of income, there is a WAHM that is struggling trying to create two diversified streams of income. Why is that?
The truth is that diversification only works if each of your streams builds on the others. If you create niche sites and put AdSense on them, you’re not going to get very far if you code each one from scratch because it will take forever to get done.
If you use a template, then you’re looking at being able to throw those pages up pretty quick. There are even programs that can help you.
But you have to be able to see the big picture, because you cannot create four streams of income that are each a full-time job in and of themselves, there just aren’t that many hours in a day.
If you have a core business selling stuffed dogs you don’t diversify by setting up a whole new business selling VA Services. You’re going to end up with two business plans, two marketing plans, and if you have kids you’re going to have to put them in front of the TV and strap them in because that’s full time job number three.
Here’s how to diversify selling stuffed dogs:
- Your stuffed dogs are income stream one.
- You have a blog attached to your website talking about everything to do with stuffing dogs, how stuffed dogs can be used, and different types of dogs.
- You have people sign up for your e-newsletter that gives occasional discount codes for stuffed dogs and an article on stuffed dogs not found in the blog.
- You publish that article on a few online article sites a week after the newsletter so it gets your site extra exposure.
- Integrate affiliate product sales into the blog as well as the e-newsletter. Stuffed cats, stuffed bears, or a company that has accessories for stuffed dogs are all fair game.
- You could add consulting in here somewhere, based on your knowledge of dogs, stuffing things, drop shipping, or anything else.
- Write an ebook on the thing you’re going to offer consulting for.
It all has to tie in or you’re going to fall on your ass out of sheer exhaustion.
Image Source: amminopurr
Comments
4 Responses to “Diversification is a Myth”
Got something to say?
-
Yep – I’m a Joiner!
It all sounds so simple. Think I’ll give it try (not with a stuffed dog, though).
It really is simple. I promise.
Where everyone (including me) messes it all up is when we get distracted by shiny things. I could do this, I could do that, Oh look at that cool idea…
And it distracts from the plan and skews the focus.
If only they sold a pill for focus, I’d be a junkie!
Oh so beautifully put. Diversification gets a bad rap – or gets mis-read as “multiple businesses.” When in fact, it is what you said – 1 focus, multiple streams. Big difference.
As business owners, the weak link in our chain is full autonomy and being the big head honcho of all things “us.” We get to decide what to do, what to work on, and what direction to go. And sometimes we forget that we’re human and can only handle so much at one time.
Yes – if you find the focus drug, please pass me some…
“The next shiny thing” is a real concern. When things seem to be SLOW, we’re tempted to either try to juggle too many skills trying to be all things to a few clients. Or we’re tempted to try to add inappropriate skills in an effort to be “full service”.
I have to keep reminding myself to look at each shiny new thing objectively. If it doesn’t mesh with where I want to go, then it gets shelved or dumped. There are plenty of diversions within a certain amount of order and specificity.
As Jen Givler points out, we are the weak link; sometimes it is a knee jerk reaction to slow times.
From another view, I also believe there are the times when we have to be paying attention to be ready to shove the puppies aside and apply what we have learned from that focus time to a super next thing!