Have you heard of diversifying your investment portofilio? No? Well, it's extremely famous in financial planning. Those financial planners will tell you that in order for you to minimize risk of lost, you should have different types of investment to generate multiple income streams. This is to lower your risk of putting all of your eggs in one basket. Do you know that the same concept applies to your online business? Let's say you have a niche website targeted for dog owners and you're making a good income each month from it. Do you know how fragile an internet business can be? Once someone find out how profitable your online business is, it doesn't take a rocket scientist to figure out how you've achieved it. Don't believe me? Here are some food for thoughts for you. If you are getting traffic from Jv partners, what's stopping your competitors from contacting them to offer a better compensation than yours? Ooh. You think your Jv partners won't take the bait because they are your friends. Fine. What happen if your competitors end up becoming their friends by end of the month? Heck, they might be sipping coffee together at StarBucks! Oops. You've just lost 50% of your income when that happens. Or maybe, you are getting traffic from the search engines. With today's easy-to-use software, it's just a matter of time before your competitors figure out how you get top ranking at Google.com. Is it fair for me to say that they'll want to copy you legitimately to get the same success as yours? And here's the scariest part of all - As long as they are not copying apple for apple, they have the rights to copy you! You can't stop them from contacting your Jv partners. You can't stop them from writing the same book as yours but with a different angle. You can't stop them from reading your salesletter and hiring a better copywriter to write for them. The only way for you to 'save' yourself is to have more than one niche sites. So, if you have 4 niche sites and each of them is generating the same amount of income, you know that each site is giving 25% income to you. If one of your niche sites is taken over by the competitors, you still have 75% income to support you financially. And remember, we don't live in an ideal internet marketing world. Your website hosting, email database and etc can give you unforeseen problems. And you can be wiped off overnight because of this. Prevention is ALWAYS better than cure. If you already have a profitable niche market, don't just sit in front of your Tv hoping to cash out money from it each month. Build more online niches, then you can do whatever you want with ease of mind. If you need to make sure you have a profitable online niche, you can use Niche CheckList to check it out. Go to: http://www.nichechecklist.com Copyright 2005 Patric Chan |
