How To Effectively Diversify Income Streams

How To Effectively Diversify Income Streams

January 31st, 2008 by Fabien

Part 1: If you want to make money online you will most certainly need to diversify your income streams. The fact of the matter is that it does not make sense to try and make only one stream work when you have six or seven other streams available in addition to the stream. John Chow always tells us this and it is a timeless quote “Don’t put all your eggs in one basket!”

That quote is true, because if you want to truly maximize your income and make money online you have to understand that not everyone is going to want to click on a text ad, they might be more likely to click on a banner or buy a product…you never know. So, what methods can you use to make more money online? (Read: Effective Blog Monetization)

Part 2: There are several true and proven methods to earn money from your blog, and today I will go over the ones which you need to target and implement properly in order to succeed in online money making.

1. Revenue Per Lead (Affiliate Programs)

If you really want to capitalize on the visitors that come to your blog, you should really have some affiliate links in and around your blog. Positioning does matter, but you should not overdo it, two or three well positioned affiliate links will perform better than twenty links at the bottom of the blog. Affiliate programs are great because you can leave the link on your site to do all the work for you, but if you really want to succeed in affiliate marketing I highly suggest you look into email marketing.

2. Revenue Per Thousand (CPM Impressions)

These are great if you want some extra income on the side, they are very useful, especially if you position the CPM banners in a reasonably “above the fold” position of your blog. CPM banners are those that earn you money by people visiting your site (not even a click is needed). These are great because some companies give up to $10.00 per thousand impressions (that’s really good!). (Read: Maximizing Income with CPM)

3. Revenue Per Click (CPC Clicks)

Pay per click was highly popular in the last century, but many people now believe we are in a pay per lead generation. Revenue per click models are still highly popular despite what these people say, Google’s AdSense is only one of literally thousands of PPC programs. PPC ads convert very well when the user is unaware of their monetization value (tech sites, shopping sites, e-commerce, movie sites etc…).

4. Revenue Per Purchase (CPA Purchases)

This is one of the most known and common forms of site monetization, it works very well for e-commerce sites, Amazon Associates is the most popular cost per acqusition program available. Other programs include Shareasale and Ebay affiliates.

Although I always mention these programs, the problem is the implementation, they can be so difficult to implement properly for maximum profitability. My answer to this is, you need to choose the right programs, for PPC choose AdBrite (it is better for customization), for CPM try and get into Tribal Fusion (they have the best payout rates), for Pay Per Lead (Try and get into Never Blue Ads). At the end of the day, you need to pick quality programs that will provide you with links and banners that users will actually want to click on. The most important thing to remember is to test, test and test again. It is the only way you will know how your ads etc… are performing.

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