I and many others make our full-time living from building niche websites. I often talk about the benefits of this business and why my strategies are so successful. However, the truth is that as with any business, there are some very real risks that you should be aware of if you are going to get started building niche websites.
So, in my post today I want to tell you how it really is. Building an online business is risky, just like any other business. An online business is difficult and complex. Most people will not succeed at building niche websites. Even with the step by step guidelines I provide on my Niche Websites Hub, most people will not be able to turn those instructions into profits on a consistent basis. There are many reasons for that, but what I really want to talk about today are the risks associated with building a niche websites business.
Just to be clear, I am referring to niche websites that receive their visitors primarily through Search Engine Optimization (i.e. Google). Here are a few of the risks that I see with building niche websites:
Obviously, some of these are bigger risks than others; I will discuss further.
I have heard lots of “chatter” about what is the most risky part of owning niche adsense websites. And I am absolutely shocked that people believe that getting your Adsense account banned is the riskiest part of the business. Hogwash! I see this as probably the smallest risk associated with niche websites. The biggest risk in my opinion is that Google could change their algorithm and stop ranking your sites – this would be MUCH more devastating.
The source of your traffic is the key to your business NOT the advertising network you use. If your traffic gets shut off, you are done. If your Google Adsense account gets banned you can still do lots of things – try CPA offers, get advertisers directly (the same advertisers using adsense), find other ad networks, or simply get a new Adsense account by forming a new business entity. Its more of a nuisance than anything if your adsense account gets banned.
Let me explain these risks with an analogy.
Lets say you own a hot dog stand and you have a permit outside a very busy stadium to sell hot dogs during all the big events. You sell the brand “Ball Park Franks”. So, is your source of revenue “Ball Park Franks”? Or is your source of revenue the foot traffic that walks by your hot dog stand during each big event? Obviously, the key to this hot dog business is the foot traffic. If you were to be banned from setting up your stand outside the stadium, your business would be done!
However, if you were banned (for some odd reason) from selling Ball Park Franks would this kill your business? No, absolutely not! You would just start selling Oscar Meyer Weiners and your customers wouldn’t know the difference.
So, in this odd little analogy the Ball Park Franks are like Google Adsense. You make your money selling Ball Park Franks. In the same sense you make money with Google Adsense in the niche business. You can always make money in other ways – Google Adsense is just one way. Having your hot dog stand outside the popular stadium is like having a good position in Google. You get a bunch of free traffic because of your position. However, if you are no longer allowed to be at the stadium or if you are no longer allowed to be in Google your website is really in trouble.
Okay, I think I have made my point. If you think getting your Google Adsense account shut down is the risk of building niche websites then you are not really understanding this business. The real risk of this business is the SOURCE OF YOUR TRAFFIC!
So, when people hear about my business model and say, “Aren’t you scared that your Google Adsense account will get banned” – I just have to laugh because this is the LEAST of my worries. The real worry is that Google could change how their search engine works. Or perhaps even worse is the risk that people could stop using search engines the way we know it. Perhaps a new technology will emerge (mobile?) that will make search engines obsolete. These are the real risks that a business owner involved in building search engine optimized websites should be worried about.
So at the beginning of this post I mentioned 6 specific risks associated with building niche websites. Now in blue, I will list briefly what can be done about these risks if they are to occur to you.
So, there you have it. I could go into much greater detail about the risks associated with building niche websites. However, I really just wanted to be up front with anyone considering getting in this business – ITS RISKY! This is not a “safe” business, its a very high risk business that also has potential for high rewards. I personally have taken a look at all the risks associated with this business and have made a judgement call and determined that the rewards are worth it to me. However, I am going in with my eyes wide open and not naive to the fact that my business model has inherent risks built into it. Many of you may feel differently, and that is just fine.
Overall, I love the niche websites business and hope to be involved in it for a very long time. But I would feel like I was not being completely honest with everyone if I didn’t write this post and discuss the inherent risks involved in search engine optimization and niche websites. So, please be aware of what could potentially happen to your business and make your own judgement call as to whether this is the appropriate business for you.
What are your thoughts on the subject? Do you see any other risks that I didn’t discuss? Are some of the risks that I mentioned smaller than I portray them to be? I would love to hear what you have to say!
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