Why making LOTS of websites is the key to making money online.

Whenever you talk to a business investor, they all say the same thing: make sure you have a well-diversified portfolio.  Why?  Because it reduces your overall risk.  

 

The funny thing is, a website behaves a lot like a stock does (assuming you are in a strong economy anyway!).  A stock can go up and down in value, but over time, the general direction is upward.  And websites behave in the same way: their traffic numbers go up and down (remember, traffic = money), but the general direction is up.  If you have a portfolio of many websites, even if one website takes a dive in traffic numbers temporarily (which happens from time to time), you won't feel it because you have so many other websites that are continuing to do well.  This is why it makes sense to have lots of different websites on lots of different topics with different types of monetization techniques (I will tell you more about different monetization techniques in another newsletter).  The owner of one website whose entire income depends on that single website is in a much riskier position (the same way that someone would be if they put all their money in one stock).

 

While a diversified stock portfolio and a diversified website portfolio are similar in some ways, a website portfolio has some significant advantages.  For one, the returns are much, much higher for websites (the best stock portfolios can get a 15% return per year).  A website portfolio that cost you $100 for domains and $10 per month could make you $5,000 passive per month after a year if your work is focused on the right places.  The returns you can get after five years into this business are mind blowing.

 

The other advantage of an Internet portfolio is that you will never have to worry about a stock market crash!  Your websites WILL grow in traffic over time because one of the main things Google cares about when judging a website is its age.  This is because new websites are constantly in and out of Google's index, but if a website has some age on it (like at least a couple of years), it means there is at least someone behind that website making payments for hosting and renewing the domain year after year (most websites are left to die once their domain expires their first year and Google knows this).  As a website has been around longer and longer, Google will trust it more and more and send it more traffic.  

 

This is why investing your time in a diversified online portfolio is a good plan to develop passive income for your future.