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Anyone who’s spent even a small amount of time researching investing knows that one of the biggest keys is diversification. By diversifying your investments, you lower the overall impact on your portfolio when one of your investments goes south.

As a simple example, if you invest in 10 stocks and one drops to zero, the overall impact is relatively low. If you had only invested in that single stock, you’d be left with nothing.

That’s why diversification is so important when investing your money. The same principle is often applied to niche sites, but should it be?

On the surface, there are a lot of similarities when it comes to blogging and investing. In fact, we like to look at our niche sites as investments.

With that being said, if you look at our income reports, while you might see that we run multiple sites to lower our overall risk, you’ll likely notice that we don’t do a good job at all of diversifying our traffic or revenue sources. This might seem like a bad approach on the surface, but in our case, it’s intentional.

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In the past, we’ve many times wasted countless hours trying to find ways to drive traffic from places like Quora or Reddit and revenue from things like digital products. After failing to gain any serious traction, we made a realization: time spent on our weaknesses is time not spent on our strengths.

Basically, instead of spending an hour a day trying to squeeze some traffic out of Quora, we could be spending that hour writing an article, which we know would produce more organic search traffic, which of course leads to more revenue.

Making this realization was a game changer for us. Instead of always looking for ways to diversify, which ends up spreading us too thin, we’ve been doubling down on the things that we know will grow our traffic and revenue, even at the expense of diversification.

Now, don’t get me wrong. Diversifying is a good thing. But does it really make sense to spend an enormous amount of time and energy to diversify your traffic and revenue sources when it means you’re taking focus away from what made your site successful in the first place?

Like many things in life, building a successful online business is all about balance. Once you find what works, you should run headfirst at it, but at the same time, you need to keep your eyes open for other opportunities as well.

For now, we’ve decided to diversify by building and managing multiple niche sites. This works for us, as it doesn’t pull us away from the things that have made us successful. Plus, we can take the profits from the business and diversify it in other ways.

We’re now at a place where we have good systems in place, so we’ll likely take another swing at diversifying our traffic and revenue sources at some point in the near future. Until you get to this point, focus on your strengths, and push everything off until another day.

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Author

After spending several years struggling to find a reliable way to make money online, I finally developed a simple system that produces large and consistent results. My small team and I are now generating life-changing income for all of us by building simple niche websites using the basic steps covered on Passive Income Unlocked.

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