Any business that is tied to the technology space has a certain amount of volatility and risk attached to it. This is due to the fact that the technologies are evolving so fast that the dependent business opportunities in terms of their volume, lifespan and returns will vary big time as well. Online money making is not an exception either as we get to hear a new and new Internet related things every day.
As a blogger, you have to continuously evolve, reassess, de-risk and diversify your blog income streams so that you can earn money for a prolonged time and increase the ROI.
Diversification of income channels
Your personal finance manager or investment adviser must have always told you about the need to diversify your investments. The case is much the same with your own business as well however small or big it is regardless of whether it is online or offline. In this post, we will be talking only about the online businesses and specifically around blogging.
When it comes to online income diversification, the following are the points to remember.
Multiple income options
Your blog needs to be monetized in more than one way – preferably a minimum of 4-5 ways – at any given point of time. I have seen many blogs that are dependent only on AdSense income and such blogs can die easily even at the hand of an evil visitor who could click-bomb your blog.
When you have four or five income streams, it makes sense to keep record (e.g. an excel sheet) of the individual monthly earnings from these income channels. You have to then assess the trend over a number of months to take a call on which ones to discontinue or persist with. You have to research and dig out new earning means, before discontinuing the laggards.
Have more passive income streams
Practically speaking, it is not easy to have a passive income stream that is on complete autopilot mode. However, there are options such as multilevel affiliate schemes which keeps on churning in passive income even without doing anything. You need to have a blend of such instruments along with other actively managed options to optimize your returns.
Do not underestimate newer options
Even if you are doing exceptionally well with your blog income, you have to keep a watch on the newer methods that are being rolled in and be receptive to new ideas. Sometimes, low profile early adapters of new ideas will do better than big fishes in the long run. More often than not, identifying the right opportunities at the right time makes one successful.
Risk management is part and parcel of any business venture. Those who actively manage and mitigate risks are likely to go against all odds and emerge winners. As far as the online business risks are concerned, the following are some of the key points you have to keep in mind.
Never depend on a single brand or house
If you have to build a sustainable business model, you should not have a binding dependency to only one vendor or brand. For example, at the moment, many of us are too dependent on Google that, if Google bans your blog from getting indexed or from one of its key products, you are mostly doomed. Have you thought of an alternate plan beyond Google?
Technology independent content
Your content should not be dependent on any particular platform such as WordPress or blogger. Even if WordPress doesn’t exist tomorrow, you should still survive. Also, it is important to have your databases and backups stored in universal formats so that you can rebuild them into whatever is the trend of the day.
Do not blindly trust people
Many times, people who want to build their online business, fall prey to those Internet marketers who claim to have made millions via their magic systems and blueprints. Unless you are very sure, do not invest in those fraud systems.
Do not invest all your money online
One of the thumb rules of investment is that you should never put everything in a single instrument. Even when you want to start a new venture, invest only small amounts and based on the returns, you could take further action.
Keep taking money off the table
It is not at all a safe option to keep your earnings with online payment systems such as PayPal forever. You have to keep withdrawing money to your bank or local accounts regardless of trivial issues like exchange rates etc. You don’t want to lose all your hard earned money if a situation such as the recent PayPal India fiasco arise.
Do not quit your regular or full-time job
As much as possible, you must never quit your regular job to hunt the online goldmine. I may sound very pessimistic here but it’s my belief that sooner or later you either get bored with the online stuff or it may stop paying you the way it did in the past. In such cases, a steady and secure job always will always be the key to your long term success.
Happy money making!