What are Niche Market Websites?
These are relatively small websites that are focused on a narrow vertical market. In other articles I give the example of a website devoted to fly fishing as a niche market website rather than a site on fishing as a sport or the outdoors as a whole.
This website will be so focused on a subject that it will contain content solely directed at the topic and contain little information about anything else. A visitor to your site will know that you are THE expert on the subject and want to come back for more information as needed.
For my fly fishing example, you will tell him how to fly fish, where to go fly fishing, sell him the equipment he needs to fly fish and then give him a place to brag about the fish he caught.
What are Multiple Revenue Streams?
This is a concept that has been around for a while under different terms. For me, it is income coming to you from different sources and efforts. Multiple revenue streams can be related to each other, supplement each other and pick up when others are down.
A second job is an example of a different revenue stream. A commission on top of a salary is another example of a different revenue stream. Having all 3 of these constitutes multiple revenue streams.
A Niche Market Website is not Supposed to be a Source of Wealth
It is not my suggestion that you will quit your day job and make enough income selling fly fishing lures to retire early. In the articles that I publish, lectures where I teach and consultations that I give you will not hear me teach the idea or concept that you can obtain wealth with a single niche market website. I am not a believer in the average person being that successful with a single site.
It is similar to the person who opens a convenience store or fast food restaurant. They too will probably not obtain wealth through this single operation. That is why you see convenience store and fast food chains.
Create your Niche and then get Pregnant
Find your niche and create your website. Optimize your site, get friendly with the search engines and draw a crowd. Make your site profitable and then get pregnant. Multiply and have a liter of niche market websites. When you are done with the first liter you should do it again.
A close and dear friend of mine has been watching our operation for some time now. He used to ask me over and over again if our website could grow to support our lifestyle without either of us working outside the home. He kept looking at our first site as a single source of income.
I wish you could have seen his face when he finally understood the concept of multiple revenue streams with regard to our niche market websites. I was glad he was sitting down when he finally got it.
I told him that we were not out to retire off of a single site. No way were we going to put our entire efforts into a single site and then live or die with the success of that one site. Our company was founded on the concept of multiple revenue streams and having multiple websites providing a more stable income over the business cycles of each market.
We worked hard to create our first site. On our first site we chose our shopping cart platform, our templates and our add-on modules. We established our company, our sales tax account, our bank account, our credit card processing, our accounting system and our order processing. All the rest of our sites were more copy/paste than creating them from the ground up.
Each subsequent site was easier to create than the one before. Our first site took over a month to get to a point where we were happy with it. By our 10th site it was taking us just a few days to create the entire site from conception to taking orders.
Do the Math
Let's say that we want $10,000 per month in profit. Do you think it is possible with a single niche market site? At an average of $20 profit per sale we would have to have 500 orders per month or 16 orders per day. Possible, however the effort is high, the risks great and the site is susceptible to cyclical market peaks and valleys. Putting our entire livelihood into the success of this single site just does not seem like sound financial planning to us.
So, let's say that we have 10 niche market websites each making $1,000 profit per month. Math says that this also is $10,000 per month. At an average of $20 per order we would have to have less than 2 orders per site per day. Is this possible? Yes, the effort is still high but the risks are now spread out over 10 sites and we are not as susceptible to cyclical market peaks and valleys.
Taking this one step further let's say we have 20 websites each making $500 profit per month. The math also comes to $10,000 per month. At an average of $20 profit per sale we would have to have less than 1 order per site per day. In all we would need just 25 orders per site per month. Is this possible? Absolutely!
The effort is still great. These sites are going to take effort to maintain and to market. However, if you did a good job on the first site you should know how to duplicate your efforts on the subsequent sites.
The risks are greatly reduced as we are now spreading our risk over 20 sites. It is quite possible for a site to take a downturn but it is also very likely that others will step forward to pick up the slack.
The chances of all 20 sites being in a sales valley at the same time is immeasurably low. It just isn't going to happen. If you pick your niche markets carefully you will have some that are up during the holiday seasons and others that are steady no matter what the season.
Multiple Revenue Streams is the Safe Bet
Do not gamble with your income. Take the secure path with multiple revenue streams. Whether you are in business for yourself or working in the labor force, do not jeopardize your family's income by being at the mercy of a single revenue source. Protect yourself and your family by having multiple ways of providing income.
If you are in the Internet business then you should strongly consider and explore the opportunities that multiple websites offer. With proper planning you could create a family of websites that feed off of each other, grow together and provide you with a steady monthly income that will bring wealth to your pocketbook.
Nathan Lewis has over 25 years of experience applying technology to solve complex small business problems.
Mr. Lewis is the Sales and Marketing Manager for CJ Internet Sales, an Internet retailer with sites such as:
- CJ Gift Baskets
- CJ Picnic Baskets
- CJ Outdoor World