Forum Moderators: martinibuster
History tells us otherwise that if you want to super succeed, you should put all your eggs in one basket. The richets people put all their eggs in one basket, ie: Bill Gates.
Anyone else putting all their eggs in one basket?
I, however, diversify a little, but still depend a lot on AS. I liken it to MS expanding to hardware ;-).
The richest people might make their fortune from one place, but they diversify to protect the money that they make. MSFT is still Bill Gates biggest holding, but he is invested in other areas to the tune of several billion dollars. You might also consider that while billg makes most of his money from microsoft, MS is constantly trying to diversify as well.
Then you might want to consider #2 on the list, Warren Buffet. Are you aware of how he made his fortune? He is the poster boy for diversification.
Anyway, should you put all your eggs in one basket? Probably not. But the situation many of us here are in is that the Google basket pays a lot more than other baskets do, so there is a tendancy to favour Google over other ad providors. I'd rather rely on a bunch of suppliers plus ads I sell myself, but the reality is that Google ads work better and pay better than anything else does.
As for AdSense I've been on several sides of that basket. For years I did not depend on any revenue from my web site and was able to do anything I wanted with it.
But AdSense became the golden goose, to invoke another proverb. I want to diversify but everything else fails, AdSense continues to produce. I'd be much better off had I ignored everything else and paid attention to the AdSense egg basket which is the only one not full of rancid yolks and broken shells...
Now my AdSense egg basket continues on with bountiful egg harvests and other things I try continue to fail...
Well, the stock market is another nice egg basket.
History tells us otherwise that if you want to super succeed, you should put all your eggs in one basket.
I suspect that having a lot of different web sites is like owning stocks in an index mutual fund. There is less risk, but also less potential for reward than if you owned one stock (or one web site) that really took off. But then again it prevents you from having all of your money in one place, like the people who lost all of their savings when Enron collapsed.
I use Adsense a lot on my sites because I'm too lazy to test a lot of other programs. But if Adsense stopped working out I try to have sites where I could put other types of ads or affiliate programs on them, if needed.
History tells us otherwise that if you want to super succeed, you should put all your eggs in one basket
Different people at different stages of development will have different views regarding putting all eggs in one basket.
From a newbie's perspective, it's better to do so. We should focus on getting that gear rolling towards the $100 mark. Had the newbies juggle different projects at the same time, tendency is to side track and lose motivation.
From an established publisher's perspective, it's better to diversify. This is to prevent his/her source of income from short or long term fluctuation. So that his/her lifestyle will not be affected. This is because human by nature prefers stability and security.
still trying out all the super-low paying affiliate networks and amazon
At last after terminating Amazon and Chitika as an PSA replacement, I have now an affiliate ad as PSA replacement which brings at last
6% eCPM of AdSense
That's at last more than 10 times better than all the other tested PSA replacements.
Please don't ever mention Trump as knowing anything about business. All he does is self promote and took daddy's companies down. His ego is bigger than the fortune his dad left him with.
That illustrates the point. If he or his ancestors had had all their eggs in one basket then Trump would have gone bankrupt long ago. There is a safety factor in diversity, in that you are more likely to be able to recover from mistakes.
There is a safety factor in diversity, in that you are more likely to be able to recover from mistakes.
Having more than one source of income or a large accumulated savings is prudent. This is something to ponder if you live from paycheck to paycheck. If diversity eludes you, as it has me, I think a lesson could be learned from the cactus plant which hoards its water in anticipation of the inevitable dry spell.
Last year I spent a LOT of time researching new projects, none of which were ultimately viable. I am a little miffed because although there are lessons learned which are worthwhile, I think I could have been 25-50% ahead in revenue right now if I hadn't done so. I'm making sure this year that I spend no more than 20% of my time on diversification projects. And I'm being more careful evaluating the projects before diving in...
Even Gates has diversified within his own company - he used to be just operating systems! And that's the type of diversification we're looking at, rather than buying or investing in another company.
Last year I would be quite depressed by Google's fickle ways, but today, I count my lucky stars that I've diversified.
beyond that, i have a rich media advertiser running a short campaign this month, and even after the agency split, it is still the best-paying advertising that i've ever had.
you have to keep working all the angles.
Behold, the fool saith, "Put not all thine eggs in the one basket" -- which is but a manner of saying, "Scatter your money and your attention"; but the wise man saith, "Put all your eggs in the one basket and -- watch that basket!"
Of course Twain went bankrupt at one point, so take his advice with a grain of salt :-) But for me, diversification for the sake of diversification seems like an unnecessary distraction.
But I do have a back-up plan if the Google basket breaks.
It still brings in enough to pay for 10% of my dedicated server costs.
The more stuff you can have going on the better.
It seems we're discussing both topics.
But risk isn't managed just by earning power. It is also managed by CONTROLLING expenditure of those earnings as well as the reliance of future earnings.
Those who have a mortgage have borrowed against future earnings. This is a major risk in that you don't know what your future earnings will be - especially in this business. Tack on auto loans, credit card debt, second mortgages etc. One way to reduce your risk is to get rid of debt and any unnecessary reliance of future earnings. THIS IS MOST IMPORTANT. You should manage your life's expenses to where you reduce the possibility of bankruptcy in a worse case scenerio. It does not take much money to live off of if you OWN your house, car, etc.
Another way to reduce risk is to manage any profit you have. Keep a year or two worth of income for those just in case times. (I can tell you a story about our largest site going to crap, 6 digit loss over the last year, and me having a year worth of income to sit on in which I haven't yet touched! - I will go back to work even before that gets touched so I am still safe) Again THIS IS VERY IMPORTANT.
When dealing in this business you can diversify several ways:
1) Create more websites that cover your personal expenses or to equal your top earning site. If your top earner should fail your other sites can pick up the tab. NEVER BORROW AGAINST OR USE CONSUME ANY INCOME from your backup sites. Just invest the total amount of profit in safe funds and whatnot. This is extra savings for your future and the income produced from those sites is immediately available to you as well as profits and icome from those funds (only if needs be). Be sure to diversify industry and or market segments if you can.
2) If you decide to put all your eggs in one basket you can diversify your traffic. Always find alternative traffic sources that will total your top 3 traffic sources. In other words if MSN Google and Yahoo bring in a total of 10,000 visitors a week then you should have multiple traffic sources that can equal that. This will reduce the traffic risk. Even if you DON'T put all your eggs in once basket this is advised action to take anyway since traffic is your life blood.
3) If you decide to put all your eggs in one basket you can diversify your income sources. Experiment with other income generating sources. Have them ready to go at a moment's notice. They may not replace that of Google but you will not be at a total loss or waste time (when you need the income) trying to find one that works for you. Again this goes back to managing your need for the income. Live off of a small percentage of income and you should be fine. Even if you have multiple sites this is still advised.
4) Take a LARGE portion of your profit and invest in mutual funds, stocks, real estate to supply you with an alternative income stream.
A good rule of thumb is 1/3 invest - 1/3 living expenses - and 1/3 spend and give. I like 1/2 reinvest 1/4 spend and 1/4 living. This depends on your income and this in no way means you need to raise your standard of living to the 1/3 mark. Adjust when necessary and also MANAGE your spending and reliance on income.
Most individuals who get a raise in a job setting will immedialy go out and raise their standard of living and consume their extra earnings where they could have leveraged those earning through investments. Keep in mind that this keeps them slave to their income and job. To find financial freedom is to manage your finances to where you are less dependant on income created through time and energy and more dependant on income through financial growth (making your money work for you). BE SMART and control the GREED. INVEST.
------- Other thoughts -------
If you are new to Adsense or just getting started I would advise you to take at least 1 hour a day and set up 5 websites within the year. Get them all started at once and slowly build on them to at least 10-50 pages. Let them age as you continue to build your primary. This way they are ready to go when you decide to really work on them and promote them (sandbox effect).
Above all have a backup plan ready to go an any time and never fall in love with your business to where you make bad decisions. Your business can be a joy but keep in mind it is merely a tool. If the tool breaks don't let it break you. Find a new tool to replace it if and when the time comes. Be prepared for when it happens.
Bless you all and I hope this helps.
Once that's happened, you'll never even consider leaving your eggs in that basket again.
Most individuals who get a raise in a job setting will immedialy go out and raise their standard of living and consume their extra earnings where they could have leveraged those earning through investments.
True. Some other suggestions I'd make are to buy goods in bulk, use coupons, shop at discount clothing stores, buy a fuel-efficient car if you need to drive, and learn to reuse old things instead of buying new ones.
Actually, there are some books that describe how the rich become and stay rich. I recall one talking about how the people drove old trucks.
Please don't ever mention Trump as knowing anything about business. All he does is self promote and took daddy's companies down. His ego is bigger than the fortune his dad left him with.
Fred Trump (Donald's father) built his multi-million dollar fortune on tenements... Donald built his on branding and marketing... Fred was never worth a billion or more... Donald is :)
[forbes.com...]
Actually, there are some books that describe how the rich become and stay rich.
The Millionaire Next Door is a good read. The authors studied the background and habits of actual millionaires. Many live quite frugally - that's how they got to be rich.
