There are plenty of businesses that earn six, seven, and even eight figures each year from a single website, without ever needing to diversify into other markets.
For me, however, I prefer to keep a small portfolio of sites, which allows me greater flexibility and (I believe) more security with my income.
The Logic Behind A Portfolio Approach
Basically, I think of my websites like stocks.
If I buy one stock, it might go up and it might go down, but if I buy 10 or 100 stocks, the likelihood that they will balance each other out increases dramatically.
The same is true for websites. At any point in time, there is some risk that a single website will stop performing, by which I mean stop producing revenue.
If you’re building a blog as a side project and have another means of income, that risk isn’t so bad because the actual risk of that happening overnight is pretty low.
But, for anyone who makes a full time income online promoting other people’s products, the idea of losing all of your income overnight is terrifying.
That’s why I think a small portfolio is the right approach.
Websites Are Better Investments Than Stocks
Furthermore, if I’m thinking of my affiliate business as an investment company that (like stock investments) identifies promising markets and then creates an asset to fill a gap in that market, I’m convinced that websites will far outperform the traditional stock market 9 times out of 10.
The reason is simple: control.
Unlike purchasing a stock, where you’re completely out of the loop in terms of how the company is managed and where they earn/spend their money, building a website portfolio gives you full control of your assets.
This means that I can invest in a website and because I’ve taken the time to learn how to build successful websites, I have a pretty strong confidence that I’ll be able to make money from that site.
Building a portfolio of sites lets me scale that process easily and efficiently.