You are probably losing more money than you think…
One common beginning blogger question I hear is “what is the best ad or affiliate program that will make me the most money? ”
Unfortunately, this question is flawed because there is no right answer. In fact, after you have read this, I hope you will see that there are several right answers instead of just one.
What you’ll learn in this article is how creating multiple streams of income is the smart and safe way to increase the amount of money you make from your blog.
First the problem: You may have tried Adsense, or a different pay per click product and found that you only make a few dollars a day. It is easy to become discouraged when you see just a little amount.
But with a multiple stream philosophy, you are always looking at the forest – not the individual trees. So when the tree is small you don’t cut it down. You simply plant more trees so you can build a forest.
In blogging terms, you’d earn a little from Adsense, a little from Text-Link ads, a little from affiliates, a little from your own product and before you know it, you are earning a lot. The whole is much greater than the individual parts.
Here’s how it works on my site:
Pay per click – $150-$600/mo
Text Links network – $100/mo
Affiliates – $375/mo
My own products – $1200 – $4000/month
As you can see when you add it all up it’s not a bad part-time income. Some of you might think, “hey drop the others and focus only on your software!” When you do the math, it appears that by dropping the others, the software sales would increase. But the reality is software sales are seasonal for many of us. The other streams on my blog compensate for the down times.
In fact, all of the streams are ‘seasonal’ in some aspect or another. Some weeks Adsense performs better than others. Some weeks, my affiliate promotions outperform everything else.
Why it’s deadly to put all your eggs in one basket
Here’s why focusing in on only one income stream is a bad idea. What happens if that stream fails? Then what?
Many blogs are all Adsense focused as their only source of revenue. But how many times have you heard of a blog being banned by Google rightly or wrongly for invalid clicks? If that happened to you, you would have to scramble to find another revenue source and pray that once you’ve found it, it doesn’t go away too.
Therefore, putting all your effort into only one income source can be deadly for your business.
It’s the same with investing money. Normally you don’t put all of your capital into one stock. You diversify your investments so if one fails the others are there to take their place.
Seeking multiple streams optimizes your earnings
Another reason for coming up with multiple streams is you get a benefit of discovery. Let me explain with an example.
Suppose you have all your time, energy and site dedicated to doing Adsense but after reading this article, you diversify and find you earn 3x as much by placing affiliate promotions. A blog focused on only one revenue stream will never discover additional revenue streams. Having 4, 5, or 6 streams all propping up one another gives you freedom to experiment.
So ultimately, by not approaching the multiple stream technique, you are losing money.
How to set up multiple streams?
Arguably, if you are just starting out, you may have started with only one source. I keep going back to Adsense because it’s so popular. If you started with Adsense, you’ve likely optimized your site so that you get the most clicks and make the most money.
Once your first stream is earning, it’s time to add another. Instead of swapping out, leave Adsense where it is and add in another revenue stream. You might choose affiliate promotions, Chitika ads, or the most profitable option – your own product.
Some people pop up Adsense and then switch it for a different promotion. If you are getting some results from Adsense, leave it there until something else proves superior. Similar to fishing, you want to get many different lines out there with different enticing “bait”.
To summarize, even if you are earning a hefty income from one income stream, there’s no guarantee it will be there forever. Protecting yourself with multiple streams is just smart business. You’ll make more money and avoid business breaking accidents.
Brad Isaac is a lead software programmer and blogger. You can read his motivational strategies every day on his goal setting blog, Achieve-IT!
PS from Darren – Brad also put me onto my new favorite pen with his review of the Fisher Space Pen.