SNM154: When Should You Diversify Your Business?
Start chasing that ball too early and you're business will never be profitable; wait too long and you're leaving money on the table. How can you manage this balancing act?
This Porridge is Too Cold
The first mistake new entrepreneurs make is chasing that bouncing ball. Each idea seems more exciting than the last and you can't resist those amazing promises.
Every course about making money online makes massive promises.
“Push this magical button and you become a millionaire!”
Who wouldn't push that button?
But you keep buying new buttons and pressing them. You forget about last week's big promises as you chase that next rainbow.
You are so busy chasing that you have no time for implementing.
This Porridge is Too Hot
You wait so long to expand your business that your customer base is constantly asking for new products.
Your revenue was growing for a long time but now it's flatlined.
You are stuck in your ways and your income starts to slowly diminish.
You aren't releasing new products or ideas, so your audience starts to wonder if you've passed away.
You are leaving more money on the table than you take home because you live in constant fear that you will catch Shiny Object Syndrome.
This Porridge is Just Right!
There is a balance and if Goldilocks can find it, so can you!
You don't want to open any new projects until your first project has crossed several key milestones.
First, you need to make back your initial investment in any training or software.
Listen to today's episode to the next milestones…
- Wait until your first project is profitable
- Don't let your income plateau or start to dip
- Find ways to diversify that take advantage of your existing infrastructure
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Send in your questions to podcast [at] servenomaster [dot] com
When should you diversify your business find out on today's episode today's episode is brought to you by Thrive themes blazingly fast WordPress templates blog and bill to get more traffic more subscribers more clients and more customers to you to find out try things can turn your blog or website into a moneymaking work of art go to Servo master.com\drive themes are you tired of dealing with divorce do you feel underpaid and underappreciated if you want to make it online fire you for us to start living a retirement dreams now then you have come to the right place welcome to serve no master project review learn how to open new revenue streams and make money while you sleep presented life from a tropical island in the South Pacific by best-selling author Jonathan Greene now your post try to diversify too soon and you get accused of shiny object syndrome make the move to soon and you can spread your focus to fit in and be unable to finish all the things you promise unable to get your tasks done in a timely fashion wait too long and you might end up leaving money on the table or going out of business when you're single point of failure collapses it's hard to find the correct balance between these two things and there's a bit of a window where you find the best time to make these decisions when you're working on a project you have to stick with it until it becomes profitable so the moment of diversification is definitely after that if you're starting a podcast or writing your first book until you make it back your investment until you go profit positive you need to focus on that this is the perfect measurement for any system so he bought a training course for thousand dollars $2000 or $5000 you have to make back that much money until you can consider profit if you spend $2000 in the course make $10 a car profitable that's wrong you're not doing your math correctly the money spent on the course counts arm back your investment first then you can begin to think about how to expand correctly when I begin to succeed on Amazon about two or three years ago I diversified into multiple pen names now at the time things are going really well and each of those individual pendants are successful but they require a lot of attention requires a great deal of my time to run each individual name on Kindle and Amazon right now my focus is on my own brand the servo master stuff and that takes all my bandwidth every month I buy ads traffic I by email traffic I buy Amazon ads on my Facebook ads all within the spread when I want to sell books under one of my other pen names have to begin that same process again each pendant has its own blog stone series books some process it takes a great deal of time to manage all these things and so I actually diversify too soon and one the ways I've dealt with that is moving all my focus into a single name for right now when you diversify when you expand it's better to expand in ways that multiply each other now when I look at diversification for this business rather than moving into another pen name instead of moving to other Amazon products that I can cross sell to my audience only about 10 to 20% of the people who read my books join my mailing list three standard for e-books other people at 1% so unhappy with my 10 to 20% range but that means are 80% of people who read my books but never take what my free gifts or join the mailing list and some of them listen to podcasts or visit the blog but they're not heavily into my messaging and the people who would never buy something through direct response would never buy something for my website services large apartment audience I can expand what I offer in Amazon and that means I'm developing other products but I'll sell directly to Amazon other ways of consumer content would love to do is develop working of course that requires a lot of math and strategy and drawings Warden things like that I think will be really exciting serve the master the game thing I thought about a little bit lately would be another would offer something on Amazon records MLS loads of different types of things you can do and I don't want to go down the path towards us like serve master pencils and Servicemaster shorts that's too silly but it's okay to think about how people consume and so right now what I'm doing is expanding putting out as many books as quickly as I can on to Amazon instead of diversifying two different pen names and expanding this 11 of my friends at a very large business to buy the million dollars a year established 100,000 Raven's followers loved him he was buying traffic every week for nine or $10,000 and make back massive profits on all the traffic used by and then went to the source right up no more access to that audience the business was buying from no longer had the levels of traffic they needed to support selling surrendered to this wall now he's making about 10% of what used to because he didn't diversify his traffic source so when you're thinking about diversifying really what you want to do first is diversify your offerings and then diversify your traffic diversify the source of customers in addition to moving beyond my core two or three books that I've been working with the last year I'm also moving beyond and into other traffickers I mentioned earlier bring more more Facebook ads I'm still trying to breakthrough I do hope team and working with their Facebook as experts for authors and were trying to find the perfect way to make everything work because I want to have more sources of traffic than just Amazon absent love working with him is on the large business in the world of probably never fail the probably be good to me for the hundred years but I still want to have other sources of traffic other ways of finding the audience it was of expanding that are again more within my wheelhouse more than my area of control diversification of aspects of your business is far easier than entering absolutely new markets if you are really successful book business jumping into print on demand T-shirts while similar in the idea that it's no overhead it's a totally different business model and we hardly jumped there now yes I have played around with fashion myself over this last year and that's why no and I pull back from doing that originality to try and enter some other niches but requires a great deal of bandwidth radio time and I want to really focus on the core business so sometimes you have these ideas that you want to go down the path and it's okay to do little for the research of interest in this ID is not working for me an pullback I do plan on trying more things with closing a talk about some stuff up some stuff for sale the cure page but what I want to do is find a better printer action you find a better place to make the close of try two or three different places and I'm not in love with what they do it's really interesting that all these people approach me on my print on demand source they can be terrible customer experiences for even start selling customers a place or to myself to see what it's like and so far the products have been okay I won't tell us that that's okay to be amazing when you feel like you're hitting the moment of diminishing returns on your business that's when you want to start looking at other areas if you've broken through the 8020 and if you like you getting very little result for extra time that's the moment when you want to diversify that's the moment when you want to look at other projects always think about the future I know when you're first starting out your Junior first book you think you're making a first dollar but you also want to think about how can I make my thousand dollar my 10,000 my million dollar how can I get to that next level partner for me right now my focus this year is heavily on increasing my presence on Amazon have a good center products they sell direct to my website and I want to have a much larger presence on Amazon I want to sell a lot more books and that means quantity you'll notice that have a lot of books in development that is putting up books as quickly as I can right now actually the editing phase rewriting phase is the biggest limitation on how fast I can put up books have covers done I have rough drafts done I'm dictating my book some very right click now switch to dictation means I finish books and a couple of days within the rewrite still takes longer finding that balance and find the right projects to work on and thinking about profitability and I'm constantly adapting him constantly pivoting I've been working on control your faith for a couple weeks now the rough draft is done the rewrite is about 30% done and it's quite a long book so I realized but I should pivot and actually finish editing influence persuasion which is much shorter book I can be done much quicker so even as you are getting higher up the mountain you'll see moments were independent moments we diversify moments when change the direction which are taking your projects and that's okay once you've made money for your first project and you understand how to make money online you'll have a better understanding everything works and sometimes you'll start to work on a project and you realize that it's a dead-end most training courses online from reputable people there are Facebook ads courses work there local marking courses that work there are business courses mine and there are some competitors horses who really work well there's nothing wrong with any of those things but there are some courses out there that don't work or have missing pieces I'm actually about to release some really cool new products hopefully in the next week two weeks that I thought I saw a course online I saw this idea in a coarseness that one if it really works and I bought the course and the idea was sound but the actual course itself and who fault it would never make it work you actually never succeed because there are critical components missing only because they already understand the print on demand world only because they arty have a very strong relation of Amazon do I see the problem in this system and I have found a way to take this broken training to make it work but anyone else about the train will never succeed it will never work for them I could tell by going to the course that this is a person who finds a good idea online talk to what other people are doing kind creates a course around it I notices is whether good none of these examples are actually by this person you just tell sometimes in some and using apples are thrown products and I found it interesting it's unfortunate that that's out there so you can run a products that don't work with have missing pieces and so sometimes when you're going through a course to hit a wall and you won't know what's missing if it's your first rodeo if it's your first time online this we get stuck with shiny objects in your because are some product specially as one of the market the product I talked about I think was seven or $20 was expensive as we are more likely to run it is stuff that is just an idea or doesn't work or this is the concept but it requires experience to know if a concept is sound or if the concept of the whole idea is a bad idea more and more the ability to make things quickly building prep courses quickly leads to a saturated market I would say the information space information technology online how to make money online spaces that your marketing spaces there very crowded with noise not nearly enough signal is not nearly enough information so for someone starting out it's very easy and overwhelm you see others courses it's hard to separate the one work for the ones that don't most of the time cost makes a big difference but we could buy courses based on high provide massive promises this course is a promise to make $1 million in the first year hundred thousand dollars in the first month and those big promises you real really exciting so as people look at the promises I make in the numbers are that huge I try to stick with realistic numbers it does mean I don't sell as many people tells me that I have to do as many refunds of people they got caught in-the disappointed but as you begin to build your online business and you start off being on the consumer side and you become the product criticized the business side and you begin to sell products horses training books to other people and you start to notice what some of the competitors are doing you want to find a path that you can enjoy doing for a long time yesterday speaking to someone is a very good copywriter message me out of the blue that's it had you know how to write a blog post and I said here's the two best places to find information as to blogs the tote loads and loads but how to write reply posts and they tell me I'm thinking of going into this industry think I'm not excited about it but I'm been a going to the snitch this industry and start working exit from Exide about how you doing why you go down the path don't like the comparatives industry but it's what I know I've been doing it for long time and is pending but not having enough in segment one of the pivot into something you like you're very successful as a copywriter you can use that to fund building any type of business or moving any direction your business had a good conversation and I send him some of the things that I do and said here's a direction from going you have to be stuck finding what I did you begin to build Amazon business you can begin to build a business using your expertise and of course part of my mindset was maybe I can get him to do a book of copywriting with me to bring copywriter even better than me greater experience Kenneth much more of a focus as a pure copywriter that I have and so perhaps will do something cool together let you know every time you talk to copywriter always gets weird set a note to work out or not was an okay conversation at the beginning of an idea at any point in your business you reach moments when you get tired of what you're doing and what change what you're doing and you want to move in another direction many people start to follow me on the tired of their primary careers finding the right moment to prohibit can be hard but it's time that window you're looking for between I making money from this business N/A Pavitt wrist with a single point of failure so before you diversify your pivot into multiple businesses or multiple separate businesses you first need to turn your primary business into something that future proof means diversification of product persecution services a diverse nation of traffic once you have those and 20 other traffic from five or six sources once you have whole series of product so that one of them stopped working people still enjoy the other ones then you can look at something else and you have to look at how much time you have available remember now you're running one business you don't have full-time schedule available start other things this happens me I started I guess I'm assuming things in the past year that I love time to build unfortunately I'm learning the same lessons and that's why it's on my mind today I've tightened up and pulled back into really focusing on serving master and that tight focus is paying off in the form of better products better profitability and better customer experience when you want to move on a project excited you have to find someone to manage the old thing in fact I went to prayer time I try to find people to manage my pen name authors at humming business books are making money and I didn't want to spend too much time on them I tried several different ways to find people to manage a part of the business I try to find it mentor that I would take through and teach the Amazon business and they would run when my pen names have prewritten books have covers done book descriptions all he would really have to do is cut manage the day-to-day manage the reviews and track everything keep the business humming along doesn't take a huge Mattapan with but I don't have enough to do it I tried that with finding a mentee I try that with finding staff try to hire someone to write blog posts for all three of the other pen names and manage that in the minutes of social media for those pen names and the person was a disappointment in the end someone had to let go after couple of months their goal was to write 1250 blog posts weakening never wrote more than half that can hit your basic goal you can't write 15 blog posts of 40 hours I got a leg up sorry I realize that I had 280 20 where my business is going after multiple efforts to find someone to manage that part of the business or as I should really focus on what's driving primary growth this year 2017 my main area of growth is all the stuff was in the server master Brenda Sir Mr. website this semester the fun Amazon so that's really my focus this year in fact this year starting now my primary focus is stuck within Amazon I'm not focusing on the backend nearly as much as I was last year I built a good website I built a good blog good podcasts have good products are proud of Amazon is where I want to focus now which is the front and begin of diversifying within Amazon to different types of people can find me procrastination is my first book in the shorter book series to have success series and I've discovered that it's quite a successful book Genesis will serve no master but it's getting a different type of audience it's doing well I'm excited about that find the right ways to grow your business make decisions based on logic not emotion take a few moments if you're tired of what you're working on sit down and think about how we want to put that to the side you are to bring a manager to run the project can you get to the point where it's complete autopilot what does it require two keep that business going and funding your next level of diversification these are the decisions you have to make and I wish I could give you a perfect formula for the exact right moment to do it but every business is little different every project is little difference they do require you to make custom decisions but having the right ideas in your mind in knowing the right ways to diversify first will help you find that perfect moment to diversify thank you for listening to this week's episode serves no master make sure you subscribe so you never miss another episode will be back tomorrow with more tips and tactics on how to escape that rat race handover to serve no master.com/podcasts now for your chance to win a free copy of Jonathan's bestseller serve no master all you have to do is leave a five-star review of this podcast see you tomorrow thank you for listening serve no master podcast make sure to subscribe so that together we can achieve true freedom