Do You Go After The Big Fish Or Lots Of Small Fish?

Obviously diversifying your portfolio in any situation, from the stock market to eating habits is a very smart move. In this case, however, I am inclined to disagree on one small viewpoint - how much starting capital you get.

Initially, with small capital it seems much more intuitive to start out small, and have many so-called “throw-away” sites that collectively rake in a decent amount of money. This is similar to, let’s say, buying 10-year government bonds. Relatively lower risk, more-or-less assured minor profit.

If you’ve got the big bucks though, you’ve almost got to flaunt it in today’s cut-throat media society. Your smaller sites will probably eventually get swallowed up in the collective crush of the internet, and unless a large, central hub is created to, as you say, “leave an image” a la Facebook, YouTube (with enough start-up capital attained, or a high-risk high-reward venture with limited assets) you may see your profits dwindling as the Mark Zuckerbergs of the world snap up the consumers and traffic.

So you are very correct in your statement that balancing large and small, as long as one understands the risks and rewards of owning both. Image is everything.

Good stuff, and yes, Eddy has a point… For the majority of people out there, money is an option, so they can’t immediately start a big-hit site right off the bat. Start small, and see how it goes from there.

Eddy:

Thanks for your comment. You have a good point. Capital does and should make a difference on what kind and scale of project you plan to take on.

However, even some of my biggest hits were started with as low as a few hundred dollars. Heck, they’re not on FaceBook’s level, but they did produce XX,XXX - XXX,XXX uniques a day for quite a while.

If you genuinely have a good idea, usually you can find away to get away with building it, even given a lack of funds. Most VC investments are actually more of a morale booster than an actual necessity for a new project’s development (ya don’t really need a few million to make ANY kind of website).

But in the end it all comes down to the amount of effort you pour into a project. You want to make money, you’ll make it. May take a year’s worth of sleepless nights, but you’ll reach the stars one way or another.

Saam:

Thanks for your comment as well. Please read my above response to Eddy. : )

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Whatever it will be, I can guarantee it will be successful. I know both of your hearts are into it.

=]

Wow, I’ve loved reading your blog so far, great stuff Robert! I cant wait to see what you two can whip up, I’m sure whatever it is you both have the determination and skills to make it big. Keep us posted!

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