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* Diversity reduces marketing and fulfillment costs.
Reflect on
following ways that diversity reduces marketing and fulfillment costs:
o Many marketing costs are
same (or nearly so) whether you promote one product or several. Per-item marketing expenses are reduced as each new product or service is added to your line, because each shares
marketing costs with all
others.
o No customer acquisition cost is involved in selling to existing customers, making such sales more profitable than initial sales.
o Processing an order for multiple items involves nearly
same amount of labor costs as a single-item order.
o Per-item shipping costs are reduced when you ship a multiple- item order in
same shipment.
* Diversity reduces business risk.
If you diversify your line instead of putting all your eggs in one basket, a dip in sales in one area of your business (due to seasonal variations or other reasons) will have less of an impact. You won't be totally dependent on a single income stream.
All too often, entrepreneurs that recognize
value of diversity tend to promote a disconnected mixture of totally unrelated goods. However,
real benefits of diversity come from expanding your line of offers around a common theme.
A Proven Way To Diversify Rapidly
I always recommend that you market at least one of your own core products or services that that you have exclusive control over. However, acquiring or developing your own products usually take time.
One way to diversify rapidly is by reselling quality products or services of other suppliers. These should be related to
specific interests of your existing clients and prospects.
You could set up drop shipping arrangements with suppliers, or join affiliate programs, which are
online equivalent of drop shipping, without many of
usual hassles involved.
In short, once you've struck "Internet gold" with one profitable product or service, you can extract more gold from
same mine shaft, so to speak, by diversifying and expanding your line of products and services around your chosen theme.

Marty Foley. For resources for profiting from your own and others' affiliate/associate programs, visit: (http://AffiliateProfitInfo.com/). His highly-rated book, Internet Marketing Goldmine, reveals powerful Internet success strategies and is available at (http://ProfitInfo.com/).