What Entrepreneurs Could Learn from Darwin To Make Sure Their Online Businesses Survive and Thrive
Learning How to Adapt Could be the Game Changer For Your Business
Darwin said it’s not the strongest or the smartest who live the longest, but the people who learn how to adapt to their environment.
This advice rings true for everyone, especially in light of everything the world has had to endure during the pandemic. But online entrepreneurs in particular really have to stay on their toes to get by in the online business world.
Online businesses can experience amazing ROI but can also be highly volatile.
All online business owners are subject to the will of internet giants like Amazon and Google. If a business counts on Google’s SEO (which virtually all businesses do) or earns money from Amazon or Google (which most businesses do), it is at risk of losing income when either platform makes changes to their algorithms or commission rates.
We’re all at the mercy of the internet gods in an uncomfortable game of luck where everything is at stake for entrepreneurs.
So the question is, how do you prepare for unforeseen threats and stay afloat in the online world?
Understanding the will of the gods
The internet gods aren’t all bad. You can start excellent online businesses using these internet giants as your foundation.
Thanks to their massive size and advanced technology, god-like internet platforms allow millions of people to run successful, passive business ventures. Many are raking in cash while working when and where they want.
The problem is that too many people take what they have for granted and think what they’ve built is secure. They delude themselves into believing that they are the smartest and strongest in the industry, so their business should be fine. But they are in for a rude awakening when their main source of income, Amazon or Google, announces huge changes that affect their earnings.
The changes aren’t meant to be malicious (though those burned by them may disagree). Many of these changes are made to help level the playing field.
For example, Google algorithm updates aim to improve the quality of sites shown in search results and weed out people trying to game the system using shady SEO tactics.
In the case of Amazon commission rates slashed it’s a bit of a mystery. There’s speculation that this year’s commission cut is because of COVID-19, but no one but the decision makers at the very top know the truth.
Either way, it’s difficult to try and predict when these types of changes will occur, regardless of the reasoning behind them.
Fail to prepare, then prepare to fail
Building a great business that is running profitably and is outpacing the competition won’t keep you safe. You need to look at what you have and ask yourself if, in the face of a massive commission or algorithm change, your business is actually adaptable?”
Even if you think you’re in a pretty good position, odds are your business could always improve.
You can improve your adaptability skills by building in processes that withstand rude shocks. The key is to create diversity of revenue streams and traffic, which might mean adding affiliate revenue to a business entirely monetized by Amazon Associates or changing a site earning entirely from Google AdSense to a new ad provider.
The good news is that online businesses are primed for branching off into different revenue and traffic streams.
The bad news is that not all diversification avenues are the right ones.
It’s possible to go after a new traffic strategy, such as using Facebook ads, and have it go nowhere. You could try to add an info product or service element to your business that doesn’t end up picking up traction with your audience, or you may try to implement a new affiliate program that doesn’t align well with your niche. In any scenario where you attempt to diversify your traffic or revenue and it flops, it’s an indicator that you may have gotten away from your core business strategy.
So, prepare your business and diversify as much as you can and as aligned as possible with your business’ strengths.
Learn how to pivot
If your business gets hit with commission changes, you can still turn it around.
This business relied on Amazon Associates and saw a drop in earnings when Amazon unrolled their massive cuts in commission earlier in 2020.
The owner realized it was time to look in a different direction and focused on adding affiliates related to their niche.
The redirection paid off. The following months were some of the highest grossing months for the business, leading to a seven-figure valuation at the time of sale.
Moral of the story: even in the face of challenges, you can always adapt and even be better off from it.
Start off strong
Many of these updates hit online businesses built on layered — and often fragile — strategies.
Black hat SEO is usually hit hard as their seedy SEO tactics are exactly what Google is trying to get rid of in their algorithm updates.
Some people see strategies like black hat SEO as taking a smart and easy shortcut. When your site leans on them and you’re seeing results, it’s easy to put too much faith in them.
Most of the tactics are not inherently wrong. They’re just high risk, high reward.
It’s better to start your business with best practices, while occasionally working in these other strategies in a way that wouldn’t devastate your whole business when something does change.
Alternatively, you can buy a well-diversified business from our marketplace, so that the guesswork of building a strong, diversified business is already done for you.
