I look at the state of the economy and try to grasp how we got here. It’s blamed on too much spending, not enough saving, bottoming out of the real estate market, etc., etc., etc.
I then look at my online writing income and wonder if there is a possibility of a virtual melt down just like the one that occurred in the brick and mortar world.
Thinking about the current economic state caused me to analyze where the bulk of my residual income came from. No matter which way I slice the pie, most of my residual income comes from Google AdSense. Not only the ads that I’ve placed on my various websites and blogs, but the sites I write for.
Most content writing sites like eHow, Suite 101, Associated Content and others use ads to earn income. While I’m not privy to the information on how much they earn from each ad generating source, I’d wager to bet that Google AdSense makes up a large chunk of their ad revenue.
What Happens If…
Just imagine that Google AdSense shuts down as a result of some major virus or worm or Google whim. What would you do if Google decided to discontinue the AdSense program? How would your earnings be affected?
Diversify the Diversification
I’ve mentioned diversification before, but more than writing for more than one online content site, diversification includes affiliate marketing, promoting a tangible product, writing and selling your own ebook, or any other type of legal way to earn money online.
As I look at my own portfolio, 83% of my online residual income is tied to Google in one way or another. I do earn non residual writing income that’s not related to Google or online content, but that takes constant daily work. I much prefer residual income.
After doing a quick analysis, I realize that I need to concentrate my efforts quite a bit more on the non AdSense related residual income. I don’t want to be left with a gaping financial hole in the event anything like the mortgage situation in the real world happens to Google in the virtual world.