“I’ve been banned and my life is ruined.”
Every day I hear somebody getting banned from one platform or another and they act like it’s the end of the world.
And for many of those people it pretty much is the end… of their business anyway.
Because they built their entire business on top of one platform.
Let me explain.
If you build your business’s marketing to rely 100% on Google traffic, all it takes is one update to tank your site.
And your business will soon follow.
I see this all the time on Reddit and Facebook groups. Every time there’s a huge update I hear -
“I lost 40% of my traffic and income this month. What do I do?!”
That’s not an exaggeration - losing 40% or more of your traffic due to a Google update is not rare.
As an aside, I’ve never had long-term negative effects from a Google update because I build my sites correctly.
How would you like to wake up one day and have half of your income just vanish?
And it’s not just Google…
One of the entrepreneurs I follow on Twitter has built his whole business on Twitter and Gumroad.
His whole business is making great tweets, sending traffic to his Gumroad page, and getting paid.
That’s working for him now, but what happens if he loses his Twitter account? If he’s collecting emails through Gum road - I’m not sure if he is - he’ll have to rebuild his business through his email list, but the point stands -
Building your business on a single platform owned by someone else is a bad idea.
It’s like building your business’s foundation on sand - at any moment it can give out.
“But I don’t break the platform’s rules, what do I have to worry about,” I hear you saying.
Currently, Google and the Australian government are going back and forth with each other with Google threatening to pull out of the country.
That means if you’re a business in Australia and you rely on local SEO for your sole marketing channel, then you might want to start diversifying your marketing.
And that’s what brings me to today’s article…
I studied finance in university and one of the most important topics we covered was risk management.
Conventional wisdom is when investing in the stock market, you should diversify and invest in multiple stocks in multiple sectors.
This means that if one business goes under, you still have positions in many other businesses so the loss isn’t that big of a deal
But most businesses don’t view their business the same way.
They rely on one marketing like Facebook Ads or Google for all of their income instead of diversifying into multiple marketing channels.
Or, they only have one or two big clients that make up a majority of their business’s revenue.
When you put yourself in a position where you have no leverage, you end up having no options, no freedom.
And isn’t that why you started a business in the first place, so you could have freedom?