One of the most common online business mistakes I see (and have seen over the past 10 or so years) is when individuals put all their eggs into one basket and concentrate on just one online business and one online income stream. For me this has never been an ideal option and quite frankly, in my opinion, it is risky beyond belief!
The Internet changes at an alarming rate and what works today may not work tomorrow. Believe me, I have owned websites which were earning £3000 a month on Friday but due to a Google update were down to £300 a month by the following Monday! At the time, if that had been my only website and my only source of income, I would have been seriously worried. As it was, the site was only one of several which I owned at the time and although it was incredibly irritating/frustrating/annoying, it wasn’t the end of the World and I wasn’t going to lose my house over it.
I have said it before and I will say it again, it is far better to have multiple streams of income. I would always prefer to have ten websites each earning £300 a month rather than one website earning £3000 a month. The main problem seems to be that if you have a site which is doing really well, you end up spending most of your time working on that one site to ensure you get the absolute maximum benefit out of it. That’s fine to a certain extent – I have periods where I concentrate on one business for months at a time BUT I always keep an eye on my other businesses and tweak them as necessary.
If you are just starting out (or even if you have a couple of online income streams in place), my advice is to get a business to the point where it is earning a certain amount of profit each month (I have always considered £300 a month to be about right). Then when you have achieved this target, start working on your next website/business and do the same. Continue to maintain and grow the first one at the same time but ideally have more than one project on the go at once. One of the other advantages of this way of working is that it will help to prevent you from getting bored with one specific site. Believe me, whilst you may think that your new website is the greatest thing since sliced bread when you first start working on it, after a few weeks of looking at the same site everyday it can soon start to get stale!
Of course, some business ideas will work far better than others and some won’t work at all but the beauty of the Internet is that it costs so little to run a simple online business that even if a site only makes a few pounds a month profit, it can be worth keeping it going. For example, I have a number of websites which I set up years ago and which I haven’t updated (or even looked at!) for about four years but every single month these sites each generate between £20 and £50 a month in profit in return for me doing absolutely nothing! Why would I turn them off? Ok, they are never going to be big money earners but even £20 a month is worth having if you don’t have to do anything for it.
Over time it is likely that you will find that you have one or two websites which contribute the bulk of your monthly income and that’s fine but just make sure you have a handful of others which also bring in some cash just in case one day your big sites no longer work…
As well as my websites and other online business interests, I still have an eBay business which ticks over in the background and which, in a worse case scenario could pay my monthly bills (I personally don’t like selling on eBay at all, far too much effort but if it was a choice between this and getting a job, eBay wins every time!)
Todays lesson? Multiple income streams are key – don’t put all your Internet eggs into one virtual basket 🙂