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  1. #1
    ABW Ambassador
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    How much diversification is good ?
    I recently found a merchant who is converting and have been adviced now to diversify. But what is a good diversification ? And how to proceed with it?

    Should I diversify in the same industry (i.e. look for more merchants in the same industry) or should I diversify in different industries (i.e. take a merchant pick from different industries) ?

    What has paid more for the affiliates here ? Is it specialisation in one industry or spreading your risks across different industries ?

    Thanks for sharing

  2. #2
    ABW Ambassador
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    I like the idea of diversifying a bit on the same site, targeted toward the same niche. It's a good way to find different related product lines that work - and also be able to identify those that don't.

  3. #3
    Resident Genius and Staunch Capitalist Leader's Avatar
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    I like to diversify across many categories, myself. This year's winner may be next year's dud. But if you've got merchants in lots of categories, there's a better chance of also having next year's hit (whatever it may be) already up on your site.
    There is no knowledge that is not power. ~Hemingway

  4. #4
    Moderator MichaelColey's Avatar
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    There are two different schools of thought, and both work.

    One school of thought says to try to be all things to all people. I think this is the hardest way to be successful, but there's no arguing that it can work. Yahoo, Shopping.com, and large coupon sites are good examples of this. It can take a tremendous amount of work and a large staff to do well.

    The other school of thought says to be an expert in a focused niche. For one person, I think this is the best way to go. I know numerous people earning six and seven figure incomes doing this. As an example, I know people who run coupon sites that are focused on specific niches who do ten times better than I do. When you're running a more general site, you have a ton of competition. When your site is an authority, it's much easier to develop a loyal following within your niche.

    Of course, once you've succeeded (or given up) in one niche, you should diversify into another one. Be careful not to be an "amateur in tons of niches", though. You might do okay (for a while) through SEO with that type of plan, but you won't get word of mouth within your niche unless you're an authority in the niche. You don't become the authority with a few days of work.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  5. #5
    Affiliate Manager nish's Avatar
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    July 6th, 2005
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    It would be a good idea to diversify and that too using different sites and tools. Keep experimenting.

    cheers!
    -nishith

  6. #6
    ABW Ambassador
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    Thanks all. So everyone agrees that diversification is good. I am moving on the right path I suppose

  7. #7
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    Yes nish, I am certainly looking forward to building more sites now and hoping that I get it all right

  8. #8
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    MichaelColey,

    Thanks for sharing both sides of the coin. Yes, those two school of thoughts certainly make sense and brings more clarity to my mind now

    >>>The other school of thought says to be an expert in a focused niche. For one person, I think this is the best way to go.

    I think this approach would suit me more since I don't have a team with me at the moment.

  9. #9
    ABW Ambassador
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    Be careful not to be an "amateur in tons of niches", though.
    Thanks for stopping me into moving in that direction. I was browsing several merchants sites and for a moment thought - hey I can make $$$ from this one, more $$$ from the second one and more $$$ from another one. But your words of wisdom do tell me that I could be stuck up in a mess where I would be struggling for success in long-term.

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