Diversifying Your eCommerce Business

“Don’t put all of your eggs in one basket!”

This is more of a long term success key than anything else, but it is very important. I would rather have 5 niche businesses that make me $1,000 each every month than one business that makes me $5,000 every month. Why?

Consider this:  It’s easier, and for some people more realistic, to create a business that only makes $1,000 a month.  I mean, if you sell 20 things through one store each month that make you $50.00 profit – you’re there! That’s less than one sale per day. If we sell one item every other day that makes us a profit of $60.00, how much time are we spending filling orders with our drop shippers? 10 minutes every other day?

It’s simply easier to create little businesses that generate modest profits than it is to create a mega-monster business that you and your family will live and / or starve by. Think about it!  You only need to do this one business at a time.

The real genius of this business model is that you will always have one of your businesses generating money in the marketplace.  Yeah, maybe one of them takes a downturn and your sales get cut to shreds. So what?! It happens, even to the masters! They simply get back up after the impact and create another revenue stream.  If you have 4 other little business plugging along, you’re less likely to get hurt by a server outage, a market correction, a drop shipper flub, a merchant account error or any one of a hundred things that could crop up.

Diversify!

I own and operate 4 online stores. They have their slow and busy months. Sometimes they coincide, but most of the time one or two of the stores are in their “busy season” while the others are just bringing in regular sales. This way I’m making consistent profit all year long and I don’t have to worry as much about a market change because the chances that all four of my markets will change at the same time are extremely low.

Diversification is smart for business and your personal mental state.