Companies that depend on the number 1 are at extreme risk. Let me give you an example.
A company has 1 client that pays them $1 million dollars a year. That client decides to leave. The company now has $0.
A company that has 1,000 clients paying them $1,000 a year, makes $1 million a year. If one client decides to leave, the company still has $999,000.
Being dependent on 1 of anything in business is dangerous. The same is true with traffic to your website. You don’t want to be dependent on any one source because it could disappear on you tomorrow.
Here are the most profitable sources of online traffic:
- Organic Google Search
- Pay-per-click ads, either Google Adwords or Facebook Ads
All of these are awesome sources of traffic and each one alone can be responsible for driving you tons of new business. But you don’t want to be caught with a reliance on just one. You want to build multiple streams and have your eggs in multiple baskets instead of just one.
Another thing that most people don’t understand is that one stream of traffic affects another. And, as you add them together, you begin to amass a cumulative effect. Let me give you an example.
Let’s say you test $1,000 on Google Adwords alone and find that it delivers you $2,000 back —a 100% return.
Then, let’s say you test $1,000 on Facebook Ads alone and find that it delivers you $2,000 back —another 100% return.
Then, let’s say you test both together at the same budget of $1000 on Adwords and $1,000 on Facebook. Your expectation would be that you’d see a return of around $4,000 but you actually see a return of $5,000 —this is the power in having multiple streams of traffic.
One stream of traffic often compliments another and you see a cumulative effect which boosts your return on investment. This is why having multiple streams of traffic is so powerful for your business. You not only cover your downside by eliminating risk but you also increase your return on investment beyond what you would normally see from one activity alone.
When I studied 200 successful businesses, all of them had multiple streams of traffic and none of them relied on just one. They used Google Adwords, Organic Google Search, Facebook Ads, Youtube, as well as others. They were not at the mercy of one provider when it came to traffic and they took full advantage of the cumulative effect present when using multiple streams.
The point here is a big one that you can no longer ignore.
Don’t rely on just one source, and take advantage of the cumulative effect of using multiple streams together. I guarantee your competitors are not taking advantage of the cumulative effect in digital marketing. I bet they don’t even know what that word means.