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Thread: Why You Should Put All Your Eggs In One Basket

  1. #1
    Will.Spencer's Avatar
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    Why You Should Put All Your Eggs In One Basket

    I think that Derek Halpern's article at DIYThemes, Why You Should Put All Your Eggs In One Basket, is pretty good advice for most beginning webmasters.

    I am, overall, not a huge fan of diversification. Diversification makes sense for passive investors, but doesn't make nearly as much sense for active business owners.

    Warren Buffet said "Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing." He owns an average of 33 stocks at any one time -- and that is after a lifetime of investing. His top five stocks comprise approximately 73% of his portfolio. If Warren can only manage five serious stocks at one time... how many web sites can any of us manage and expect to do well with?

    It seems to me that the right number for a beginner might be two. In the beginning, I enjoyed switching off between my tech site and my political site. And, of course, when Google beat the heck out of my political site, my tech site kept my spirits (and revenue) up.

    Of course, you can own lots and lots of domains -- but you can't actively manage and improve them. I own a bit over 1,700 domains, but even with 19 full-time team members almost all of our domains are static. We have fewer than 50 web sites with more than 20 pages.

    A decade from now, Google will (hopefully) be better at telling good web pages from crappy web pages. As that happens, the webmasters who focused their efforts on making fewer higher-quality websites will benefit financially.

    Derek is wrong about one thing though -- you can't cheat the 10,000 hours. Learning the tricks and shortcuts is part of the 10,000 hours. It's already factored in.
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    Quote Originally Posted by Will.Spencer View Post
    Of course, you can own lots and lots of domains -- but you can't actively manage and improve them. I own a bit over 1,700 domains, but even with 19 full-time team members almost all of our domains are static. We have fewer than 50 web sites with more than 20 pages.
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    Quote Originally Posted by Will.Spencer View Post
    Derek is wrong about one thing though -- you can't cheat the 10,000 hours. Learning the tricks and shortcuts is part of the 10,000 hours. It's already factored in.
    I read the article and agree with you. 10,000 hours or between three to five years experience sounds tight.

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    SonnyCooL's Avatar
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    for me i put different egg in same basket from time to time ... if my basket big enough ...

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    its easy for me to manage when putting all my eggs in one basket..

    say i have my domains in godaddy and have some in namecheap and some to other registrar, this would be something tiresome to loggin to those sites.

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    Warren Buffet manages billions of dollars of investor money so it should be hard for him to invest it all in one or 2 stocks.

    As an investor myself, I try and keep the portfolio to a minimum of ideally 1 stock that I can keep an eagle eye on. But it turns out that I end up investing in several stocks.
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    All eggs in one basket, as any farmer will tell you, is so much easier to transport.

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    Hi,

    OK, lost again. What else is new.

    Isn't the basket the internet. and each egg your different website. It is just that some eggs are the size of pigeon eggs and some the size of ostrich eggs.

    That reminds me of a comment when Redd Foxx was asked about marring a woman from outside of his race. Foxx replied, "I married someone from the human race. I didn't marry a duck."

    So what are we to do have one huge site like Yahoo. instead of having a different domain name.

    I can see it now Sami's travel, Sami's movies, Sami's gossips, Sami's halloween tips, Sami's Christmas tips, Sami recipes, and so on.

    He might have a point because even Yahoo don't up date every part of their site everyday.

    I though being in the niche would help you because you speclized.

    The way Yahoo dose it is a mess you get lost just hunting for stuff on the site.

    That is why most of the time I search smaller sites. Yahoo is laid out so badly you get lost.

    The only benefit I can see from that is paying for one domain name.

    I don't have the money or funds to try something like that. But if someone does move 60 to 100 sites worth of information to one domain name. I would love to hear if you are making more money with just one domain name.

    Also I my sites are on 4 different servers if one goes down I still have the others sites up and running to earn some money.

    I also asked along time ago at a different forum if you could put one site on different servers so if one server went down the other server would come on like the backup lights in the house dose when the power goes out. The answers I got meant a huge mess because you would need to backup each server every time a post or a comment was made. Way to much of a headache.

    The reason I bought all my small celebrity site was to use them for backlinks to promote my main celebrity site. Kinda like what some are doing with 2.0 pages. I feel that as I build links to the smaller celebrity site it make them stronger to push my main celebrity site.

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    I'll agree with this article.

    When I started Vectro I focused solely on selling general hosting. That market is over-saturated and did not do as well as it did in the 90's when I had first started in the biz. I then started proxy hosting and proxy end-user services. I developed both at the same time. The two projects paralleled each other. I made sure they became well established, functional and relatively automated before I moved on to smaller projects and joint ventures. I would agree that beginners should stay focused. If they start too many sites at once, they can become difficult to manage. It doesn't serve new webmasters any purpose to overwhelm themselves and not be able to keep up. Staying focused makes more sense.

    I manage all of my sites pretty well, except when I have programming needs, since I'm not that good at coding. Luckily, I recently met good a programmer who helps me. I don't expect the side projects to make as much money as the main projects. They're open to interpretation and experimentation. I try not to get too attached to them.

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