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For creators and independent publishers who want to establish sustainable business models, diversification is essential in relation to audience growth as well as revenue generation.

In an era when audience behaviours and expectations are constantly changing, revenue models and opportunities are constantly evolving, and the priorities and interests of third-party platforms may change in the blink of a pen, the only way companies that are driven by content can be set up to sustain their long-term viability is by ensuring their eggs aren't placed in the wrong baskets.

Many creators and publishers have discovered how to avoid reliance on a single platform, short-lived growth tactics, or insecure revenue sources put them in precarious positions. Sooner or later they're forced to look for ways to diversify the essential elements of their operation and business, or think about the possibility that the rug might be pulled away from their feet.

Where diversification is essential

Diversification may be different for different types of creators, but it is the most important factor in insulating their businesses from the impact on their business from factors beyond their control as well as minimizing consequences of choices of the other party. The goal isn't only to play defense. In fact, diversification can also be crucial in allowing creators to spot and profit from emerging opportunities.

Diversification is the most crucial thing in two areas:

Audience

In any business that is successful as a creator that is successful, a "north star" goal should be developing close relationships with their customers. That often means getting involved as much as they can on their own sites, email lists, and other platforms they control and run, and not using third-party platforms or partners.

But when it comes to reaching out and reaching with new viewers, the reality is that every creator relies on partners and third parties to some degree in the form of the social media, video as well as podcasting sites, advertising paid for or distribution through different creators or organizations.

To any artist who is looking to build a defensible lasting business, having an appropriate and diverse mixture of distribution and discovering channels is essential. Relying too heavily on one company or platform comes with risks inherent to it, and artists should aim to diversify the channels and the partners they partner with to minimize the impact of algorithmic changes as well as other external factors on their capacity to attract and engage audiences.

Revenue

The most successful businesses make profit in many ways, both in order to increase revenue as well as to protect themselves during more difficult times. The concept of diversification may be even more important when it comes to independent publishers and creators who's livelihoods can be on the line if things take a turn for the worst.

Creatives who rely solely on one or two partners for revenue - whether via licensing, advertising or any other arrangement - are placed in a fragile position. The goals and priorities of these partners may be in line to the needs of creators' audience and content today, but they could shift significantly in the near future. The broad economic environment is also a factor: Revenue streams reliant on the advertising revenue can run out in periods of uncertainty in the economy such as.

To diversify their revenue streams, a rising number of creators are now developing subscription or membership options of their own and letting their audiences support elements of their companies directly and without the need for third-party support.

Revenue from memberships has a range of benefits that creators can reap:

• Enables them to generate revenue directly from their audience without third-party intermediaries owning control and taking a share of revenue.
• Creates reliable and predictable revenues which is easy to forecast and plan around and not reliant on large media "hits" as well as the insanity of algorithms.
• The impact is less influenced by larger economic trends that can often lead to a decrease in advertising expenditure.

Others are diversifying their portfolios by branching out into products and e-commerce endorsements, sponsorships, job boards, and even advisory and consulting arrangements.

The principles for efficient diversification

Diversifying audience and revenue involves various strategies and approaches between different artists to another based on their audience, content, and many other elements particular to their business operations and businesses. For those creators looking to build long-term businesses However, it's worthwhile to invest in it, having the following guidelines in mind can aid:

The priority is control and ownership. The most robust business owners ultimately have the direct access to a significant portion of their audience via the platforms and properties they control and run, and not ones provided by third-party companies. It gives them freedom and flexibility to make decisions to strengthen their business, rather than having to be dictated to by others. Platforms and third-party providers can be crucial to the growth of an audience However, building a business within someone else's territory is not a wise choice.

Take your time and be open to slower growth. Building a diversified company and an audience can take some time and involves making decisions based on long-term viability rather than immediate boosts. Rapid audience and revenue growth provided by third-party platforms and partnerships typically have restrictions, and the creators must approach these opportunities with caution. Achieving a balance between the short-term growth and long-term success is ideal, naturally and establishing a broad company often requires looking at the longer-term perspective.

Make use of tools that are non-prescriptive and flexible. A fundamental prerequisite for diversified businesses is access to open, non-biased tools capable of evolving with and adapting to the needs of creators. Every publisher and creator is unique and every business has distinct requirements and individual dynamics. Instruments that limit their possibilities to predefined models and approaches - intentionally or otherwise - hinder their capacity to build successfully diversified businesses.