The market for content sites has shifted considerably as a result of COVID-19. On the one hand, user demand for content to enjoy and consume is higher than ever due to extended lockdowns and the shift to telecommuting. As reported by The Economic Times, digital advertising has experienced a marked downturn as users are both less present and less focused on the most lucrative platforms. Know about the characterstics of a properly diversified content site portfolio here.
Still, even in the face of such a landscape, the purchase and sale of content sites can prove quite lucrative if you take the right approach.
A diversified portfolio is crucial in that regard. If you only own a single business, or your portfolio consists entirely of businesses in the same market, you’re in trouble if that market crashes. Ensuring that each content site in your portfolio is unique provides better income diversity and potentially even unlocks lateral opportunities between acquired entities.
But simply saying your portfolio should be unique doesn’t tell you much — let’s discuss what we mean by that.
A Strong Foundation
The best portfolios consist of financially stable businesses with steady revenue streams and decent prospects. If you intend to purchase and revitalize a failing content site, the portfolio route likely isn’t the best one to take. Maintaining a portfolio is itself a significant undertaking; you do not want to spend an inordinate amount of time trying to save a single component of that portfolio.
Backed By Strategy
When they hear about portfolio diversity, newer buyers tend to assume that means acquiring new content sites without much thought as to why. As long as each business is profitable on its own, they reason, their portfolio should do just fine. And while it’s certainly possible to build a strong portfolio with such an approach, I’d not recommend it.
Instead, each time you evaluate a prospective purchase, think about how it fits into your portfolio. For instance, one content site might publish blog posts that you know for sure are interesting to your audience, even though it covers completely different topics. Another might come with a proprietary content management system that can help you run your other sites more efficiently.
You’ll also want to consider the market for each content site. Not all niches are created equal. Consider travel blogs as an example.
Many of these sites are currently struggling, as travel is the last thing on everyone’s mind. Once the pandemic ends, however? People are going to want to experience their renewed freedom.
They’re going to want to go out to restaurants, go shopping, and go on vacation. As such, although there’s still no surefire way to know when the pandemic will end, once it does, these niches will likely experience a significant boom in interest and potential revenue.
In short, don’t simply chase every shiny new business that catches your eye. Be deliberate. Make each purchase with focused intent, and ensure that every acquisition enriches your other offerings in some fashion.
While it’s advisable to gear your portfolio towards a particular niche, each content site should ideally also cover different topics from the others. Unless you plan to eventually consolidate them into a single network or platform, owning too many of the same sites could lead to traffic and audience cannibalization.
For instance, let’s say your niche is technology; your portfolio might consist of content sites that cover each of the following:
- Gaming news/reviews.
- Smart technology.
- Home appliances.
- Smartphones and tablets.
- PC hardware.
In short, diversify, but keep it relevant. Don’t overdo it, either. The broader the portfolio, the more challenging and cumbersome it will be to manage and maintain.
Multiple Content Types
Just as your portfolio should focus on a broad range of different subjects within a niche, you should also endeavor to represent multiple different types of content within that portfolio. This includes, among other things, blog posts, infographics, white papers, and videos. You’ll also want to think about how you intend to monetize this content.
Advertising may seem the obvious route here. However, with the growing prevalence of ad blockers and the changing attitudes of digital consumers, it should not be the only source of revenue for any of your sites. As noted by Financial Express, the pandemic has fundamentally changed content monetization.
As such, content sites need to explore alternative revenue models. Fortunately, you’ve plenty of options in that regard. Some examples include:
- Amazon Associates allows you to include affiliate links on your blog, granting you a commission for all purchases made via the link.
- Content gates that lock off higher-level white papers and ebooks behind a tiered subscription.
- Paid guest editorials/sponsored posts.
- A merchandise store.
Striking the Right Balance
Stability. Diversity. Strategy.
These are the pillars of every effective portfolio. In the long term, a measured, deliberate approach to business acquisition will almost always win out over a strategy that involves flying by the seat of one’s pants. By seeking out sites whose content and monetization aspects mesh well with what you already own, you’ll be positioning yourself for greater success, both now and when the pandemic finally ends.