Unless you’re in the business of providing marketing, advertising and technical products and services to other web-based businesses, if you operate an online business you need to diversify offline for a number of reasons.
Profitable web-based income streams are rapidly dynamic
Unless you’ve managed to capture a really large market, not even necessarily as a pioneer, you would be fully aware of the fact that the most profitable online business models are those which operate on a structure that is based on generating advertising revenue. Whether you’re selling products or services yourself directly, as an affiliate or if you’re selling advertising in the purest sense, it’s about getting a core business model right. Now, the fact that this business model typically exists in the digital space means that any team of programmers with enough willpower to do so can clone it within a very short space of time, thereby eating into your pioneering market share or completely changing the game to take business away from you directly.
So it’s important to diversify offline.
It’s just good business practice to diversify into something more “tangible”
Even the best of web-based businesses can essentially be cloned in some way, so to avoid losing capital value in the event that you may one day need to sell, it makes good business sense to diversify into something more tangible, offline.
You create more “tangible” assets when diversifying offline
This just builds on from the previous section – there is indeed more value in assets which exist physically, like perhaps your web-based company owning some buildings which will be recognised as actual value in the eyes of some relevant power figures who may not otherwise be able to reconcile any value with something like a website.
The virtual world is but just an extension of the physical world
When you realise that the virtual world of online business is in actual fact just an extension of the physical world, it will make more obvious sense why there’s a need to diversify offline. Certain business decisions will then be easier to make, such as how if you perhaps have your own servers housed somewhere you can decide to save energy and money by implementing the use of solar panels to power up the infrastructure.
Websites are digital, yes, but without physical servers somewhere, they really don’t exist…
Online advertising and marketing is a full-time job
This goes back to the discussion of the type of online business you’re running, and if you’re not in the business of providing online marketing and advertising products and services, you will fall short in this department. The fact that leading SEO service providers such as Assertive Media exist and operate on a dedicated, specialist level, says a lot about what’s required to keep abreast of what it takes to stay relevant so that you can keep bringing in an income.
So, when you diversify offline then you can focus on the core operations of what directly affects your bottom line and leave the specialised web-based marketing to the experts.