Are you in the business of making money from blogs?
If yes, this article could be for you. Internet-based business experts share a common belief that a web business should gear its focus towards meeting the needs of a target market. Famous bloggers proved that this principle applies to blogs too. This advice is formulated based on the well-known concept that a business performs better when it “specializes” in a niche topic rather than delving into unfamiliar industry areas.
However, business owners need to understand that a certain degree of diversification may highly benefit their online ventures, especially during an economic downturn. This article will guide you on 3 effective ways of making money from blogs with diversification as it pertains to your assets, your products and services, and your client database.
Proven Techniques for Making Money From Blogs
1 – Related Diversification - Upscaling Existing Products and Services
When a company develops new services and products that are directly related to the same items it already offers, it is referred to as “related diversification.” In simple terms, related diversification is taking what a company already has and upscaling it into a premium product or service that costs slightly more than the original. For example, an online ecommerce website can offer expedited delivery and/or gift wrapping to customers for a slightly higher price without having to make costly and extensive changes in their business.
2 – Horizontal Diversification – “Customers Also Bought…”
Another common method of making money from blogs is via “horizontal diversification.” A simple way of understanding this concept is to consider how you visit a site to buy, for instance, a portable digital device, and are offered also for purchase the batteries required to operate it. Another example is a shopper purchasing a book on homeopathic pet remedies and receiving a suggestion of other related products such as pet products or topic related eBooks or reference guides. Surely you’ve seen the ecommerce application that offers up, “Customers who bought this also purchased…” and a list of products is then provided. Extremely popular websites frequently utilize the HD (Horizontal Diversification) technique to tap into more sales from their existing customers. Consider the Amazon selling venue where customers are always offered a list of related products or those previously purchased by other shoppers in conjunction with a specific product.
3 – Unrelated Diversification – A Process of Diluted Risk
Unrelated diversification is the process of a blog or website promoting new services and products for their customers that are not related to what is already offered. The thought behind this concept is to dilute the risk across multiple markets or industries rather than funnelling all of the risk into one single product.
For instance, if your online business markets courses on how to invest in real estate, you can offer additional courses on how to stage the properties for quick “flip” or prompt leasing. UD (Unrelated Diversification) is a great opportunity for your business to embark on a new product or service idea without abandoning your specialized niche market altogether.
Diversification does have its own isolated expenses. New product development is required along with proper research, marketing costs, and distribution expenses for the new product or service. However, research has shown that the possible profits from diversification most always offset the risks involved.
In closing, you can see that diversifying is a much safer direction to take than keeping all business energies focused on a tight market that might not survive a negative economic plunge. And, making money from blogs follows the same rules as any other traditional business.
Your Thoughts on Making Money From Blogs
What are your thoughts on these techniques for making money from blogs; do you have more ideas to share with us?