Diversifying Your Business Portfolio
by Kath Blackwell
Diversity makes the world go 'round - really, it does. Without diversity,
life on our planet would not be as plentiful, or even as successful
as it has been for so many millions of years.
Each little plant, insect, reptile and mammal plays a key role in
the prosperity that we all enjoy in our world. Think of each player
as a new level, a new dynamic - an important integral part of the
greater picture. Your business should be run in much the same way.
It doesn't matter if you build adult content galleries for TGP sites
or if you own a construction company; diversity is key.
So what IS diversification?
Diversification is about finding new ways to generate revenue and
expand upon your current business model. It's about discovering new
ways to turn your simple moneymaking idea into a complex and diverse
business plan that doesn't rely on one source of income, traffic or
consumer demographic to make a profit. It is also an excellent way
to ensure your company's success no matter what hurdles or pitfalls
might come your way.
Some examples of diversification within the online adult entertainment
industry, are:
- A free-site webmaster learns about and begins building galleries
for TGP
- A paysite owner opens up his own hosting company
- A hosting company launches a custom scripts service
- An affiliate program begins shooting - and then
selling, its own content
Some webmasters are also diversifying their content offerings -
not just by niche or micro-niche, but by offering non-traditional
options to their members... Sports scores, news tickers, Web-based
games, downloadable games - and upgrade-able adult content packages
and other innovative ideas in up-sells. It is more important than
ever to make sure you are giving your paying customers as many options,
opportunities and reasons to renew their memberships as possible.
The days of sign-them-up or get-them-to-click-and-go are gone. Retention,
reputation and building a solid, happy customer base are what really
count in today's growing market.
These are all excellent ways to expand upon your business, create
a diverse plan of action that will help you get through changes
in processing, legal issues, etc... However, a good businessperson
knows that finding new avenues for creating income even outside
of the industry is a smart move. Mainstream Web site-building sounds
like a logical choice, but let's look at the bigger picture, and
focus on what's outside the box.
Investing Outside the Virtual World
Many members within our community have worked within the Web world
for so long, we've forgotten what it's like to work outside of it
- or maybe have just lost all desire to remember. However, more
and more webmasters, program owners and service developers are looking
outside the Web to diversify their business portfolios.
So what are they getting into? A few are opening restaurants, some
are investing in real estate - a few are even getting into nightclubs,
a somewhat logical progression from online adult entertainment to
a real world venture. There is literally a whole world of opportunities
out there waiting to invest in today's tech-savvy entrepreneur with
their Internet profits, creating a mainstream non Internet-based
business.
These off-the-'Net business ventures can be used as either additional
income, a "back-up" plan or a whole new company that might even
eventually eclipse what you started out with on your little Web
site. Whatever you want it to be - and whatever it ultimately becomes
- finding an additional source of revenue and business to add to
your overall portfolio is becoming more and more essential to today's
Web developer.
Change - A Fact of Life
The old adage of, "if it ain't broke, don't fix it" doesn't really
apply when we think of the future of our businesses. Some industry
experts say that the Gold Rush days of the Internet are over - while
some claim that they feel it's really just beginning. Whatever your
viewpoint or ideas on this issue, one thing is certain, change is
inevitable. If you're turning a profit today, you just might not
be tomorrow. Some businesses are able to get through the tough times
on money that they've set aside in advance, but most are able to
see it through because of outside investments and outside ventures
with which they have become involved over the years.
You cannot stay the same and hope to survive. You cannot be unwilling
to change, and then wonder why you were unable to adapt. You cannot
stand with your feet firmly on the ground, unmoving and unchanging
and hope to ride the wave of the future.
Finding investments and business opportunities outside the industry
is not turning your back on it - quite the contrary. It is helping
to ensure that you will be here today, tomorrow, the next day and
the day after that no matter what new restrictions the credit card
companies put on us - and no matter what new law or regulation hits
the world of adult entertainment. Having an outside source of income
- backing for your business - is investing in your future, and the
future of our entire industry.
In Their Own Words - Webmasters Who Diversify
But don't just take my word for it - today's adult webmasters and
businessmen are out there right now, diversifying their businesses
and ensuring the future success of their ever growing bottom lines.
In a recent discussion on industry message board Oprano.com - in
fact, just before the October 1st, 2003 Visa deadline - community
members talked about the different ways that they are opening up
their business plans to fresh ideas.
"Diversification is very important... especially with the golden years
of Internet porn long gone," Posts MikeAI of PureCash.com. "I have
invested money in property, but mostly for long term investment,
most of it is not bringing in any income. In fact most of my previous
investments have been [long] term asset appreciation investments
with no interest in bringing in income. I have been forced to change
this way of thinking, and am now looking to invest in things that
produce yearly income."
"This could be property, bonds or stocks that pay dividends, etc.,"
continued Mike. "I have also [been] looking into the restaurant
business, hoping to open up a Sun Ray Grill (www.sunraygrill.com)
in Tampa... but even then, restaurants do not make huge profits. We
have all been spoiled by the crazy profit margins in this industry."
Nickatilynx of NicksClicks.com posts, "For myself I have, for the
moment, gone the way of sending 'my own traffic to my own paysites.'
It's safe and my thinking at the moment drives me to consolidate
and ensure my core ability to survive and change with the times.
For me then, it's re-group, consolidate and strengthen. Accept the
fact that the nuggets of gold are not lying there on the ground.
Now we have to dig for them."
"In light of the gathering clouds," Nick continues, "This is not
the time I want to invest in restaurants, clubs, etc. I have some
property investments and some non-adult ventures, but these have
no costs related to them, thankfully now. I'm sticking to what I
know."
"Potato chips," Says LeeB, an Oprano.com poster. "Sounds crazy but
it's like porn, something that everyone wants at some point, but
with chips it's good for all ages. I just bought the master license
to Michigan and some other states to launch franchises of this product.
It's freshly made potato chips. We're starting out at large entertainment
venues, and as the product gets known, we will expand into the wholesale
end. If all goes well, I will send plenty of bags out to Vegas for
the show in January!"
"We are in the final stages of approval for a wholesale wine and
beer distributorship license," says Hooper of QuickBuck.com. "It's
great. Huge exclusive territories, gigantic margins, and most of
the money is made by reorders. [It's] a bitch to get into because
you are essentially becoming a licensed drug dealer, but trips to
[the] California wine country are now deductible! Also, real estate
and another little biz that I'm sure I'll be telling you all about
in a month. Diversification is a MUST."
Other ideas tossed around during the discussion were public access
Internet terminals, elite industry-based gatherings, creating a
clothing line, renting out real estate and other mainstream (non-adult)
ventures.
Bringing It All Home
Deciding what to do can sometimes be as challenging as actually
getting out there and doing it. The research that can be involved
in some projects - especially areas that are dynamically innovative
and cutting-edge - is overwhelming. Make sure that you have a solid
handle on your venture before you invest a single cent - and make
sure that you are working with people that you can trust to get
you the products, services, support and technology that you need
to make your new business a success.
Many people like to stick with the "do what you know" philosophy
- and that's not a bad idea either. Sticking with what you've got
experience or knowledge in can save you a lot of time and money
on the research and development end of things. Not to mention the
confidence and security that working in a field that you understand
can bring. But don't cut out new technologies and ideas altogether
- the world is a fast-moving place, and there are many new ideas
being developed and born each and every day. With innovative developments
surrounding new ideas like Internet terminals, SMS and MMS technologies
for distribution of content and purchasing, the world of pre-paid
Internet access cards and phone cards... the possibilities are endless.
The Choice is Yours...
It doesn't matter what new tangent you decide to embark upon to
expand your business portfolio, what matters is that you find something
new to get involved in as soon as possible. Diversification is important
- it is essential to the overall success of your business. Teach
yourself to think outside of today and look to the future, and make
educated decisions and plans that will help you continue the successes
and fruits of your Internet labors for many years to come.
Good luck in your newest adventures in the world of business!
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