Why you should put all your eggs in one basket
Conventional business wisdom says not to put all your eggs in one basket. This phase is so commonplace is has become cliche. By diversifying, if one part of your business fails you will still be able to turn revenue from the other better functioning components. If you have multiple websites you can still derive income from the other sites if one site should falter.
But diversification isn’t always worthwhile and you are often better off putting all your eggs in one basket-provided that basket is very sturdy and you watch it closely. Having a single superior website over a group of mediocre websites will always produce better returns.
Many successful businesses derive their revenue over a single type of product. Google, for example, drives 99.9% of its revenue through selling adwords ads. By any metric that isn’t a diversified revenue stream. If people stop buying Adwords ads then google will falter, but do keep on mind that is extremely unlikely given the staggering success of the adwords problem. Google’s basket is virtually indestructible since there is no seemingly way google can fail. Google has many other revenue streams such as google earth, youtube ads, gmail ads, but these only constitute a tiny percentage of google’s total revenue.
By putting all your eggs in one basket you can devote ALL you resources to making one site extremely successful rather than diluting your resources on many sub par sites. This way you create a single, very sturdy basket.
I often visit webmaster blogs and usually the blogger will have their portfolio of websites listed on the blog. Usually only one or two of those sites are successful and bring in most of the revenue while the other sites on the network constitute a negligible about of revenue. So technically while the blogger is diversified his revenue stream isn’t. All his eggs are still in one basket. These webmasters would be better off focus their efforts solely on the most successful sites.
In conclusion, my advice is that instead of trying to launch and develop multiple websites focus on maybe one or two websites that have the greatest potential. Devote all your resources to those sites rather than dilute you time and money across multiple sites.