We’ve all heard that old saying before “don’t keep all your eggs in one basket.” It’s actually a metaphor for telling us not to put all your hopes and dreams into one single course of action. If you do, and you “drop the basket,” then you may break all those eggs and have nothing left.
Never has this been more true than in Internet Marketing and online sales.
 

 

One thing that I have seen time and time again, during the years I’ve been an online entrepreneur is that many people seem to rely on one business, or one marketplace to “put all their eggs into,” and then when the business goes belly-up, or the marketplace changes its rules, they’re scrambling (no pun intended) to try to figure out what to do. As an example, a lot of Internet Marketers got hit hard when Google introduced the Panda and Penguin updates. One day people were flocking to their websites, and the next day tumbleweeds were blowing across their landing page.
 

 

I’ve seen the same thing happen with eBay and the products some people sell. Actually, I even experienced it myself. I was listing a bunch of very popular kid’s items, and doing very well with them. I knew it was a trend, or what you might call a fad, but there didn’t seem to be any end in sight, so I kept restocking the items over and over again, even building up an abundance of inventory to make sure I wouldn’t run out.
 

 

Yep, I had all my eggs in that one basket, and then the sales started slowing down. Then it became a trickle, and then one day, I couldn’t even give those items away. I switched off to another product and another, and eventually got myself stuck with those generic iPods. It wasn’t the only reason I was failing, of course, but a lot of it happened back then because I wasn’t diversifying my business enough.
 

 

What I’m getting at here is, whether you’re a full-time self-employed Internet Marketer, or just consider yourself a part-time online seller, it is very important to make sure that your online business is diverse enough, so that if something goes wrong (and eventually it will!) with one part of it, you’ve still got enough parts of your business left to keep going. This is what is called having “multiple streams of income,” and I’ll be writing about that concept on my blog next week.

 

~Until next time

 


    9 replies to "Don’t Keep All Your Eggs In One Basket"

    • Sandy Salz-Johnson

      Personally, I’ve learned the hard way & now sell on 3 platforms, sell a wide variety of items, and have multiple sources.

      This is exactly what the Phoenix eTailers Conference is about. It’s just not good business practices anymore to only sell on one marketplace, one product, one niche, from one supplier, one means of marketing, etc, etc.

      This is a chance for sellers to explore ways to expand their business all in one place, plus speakers covering good business practices that apply no matter what your business plan. Check it out!
      http://phoenixetailersconference.com

    • Robert Corrigan

      Hi George,

      That is exactly my business model, I have been burnt too many times by eBay rule changes and Amazon. EBay nearly destroyed my business three times with rule changes before I finally learned.

      I still trade on eBay but it is now part of my strategy not THE strategy. Look forward to reading your next post.

      Keep well

      Rob

      • George Nieves

        Hi Rob,
        Thanks for stopping by. Yes, I know exactly what you mean about eBay. I still think there is money to be made there, but those rules changes they keep making can sort of make you think that it’s not always worth it. As you said, we need to make them part of the strategy and not THE strategy. (I like that!)

    • Kim Haskins

      George, you are such a wonderful inspiration. I always read and take to heart what you have to say. I enjoy almost daily inspiration from you.
      You are the King.
      Keep the words flowing George.
      Kim

      • George Nieves

        Hi Kim,
        Thank you for your kind words. I’m blown away by your praise. I will continue to try to inspire. 🙂

    • Bonnie Gean

      Very sound advice… even though I’ve always diversified online (and with my offline business), some people need the reminder.

      Thanks for sharing!

      • George Nieves

        Hi Bonnie!
        Thanks for the comment. I think some people get overwhelmed by all of it when they first start out, so I want to make sure they know that they need to step up and diversify as soon as they can.

    • I. C. Daniel

      I read this pretty often actually and I have it on my mind, I agree this metaphor, but sometimes we’re forced to put our eggs in one basket and because we focus and dedicate all we’ve got most of the time we succeed.

      See you next time George.

      • George Nieves

        Hi I.C.,
        I know exactly what you mean. I think the problem is that some people get so comfortable with just the one thing that they never try anything else. THEN when something happens to that one stream of income, they are forced to scramble (egg pun!) to stay on their feet.

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