Let’s talk specifics.
Regardless of whether or not you are familiar with niche sites, lets address the elephant in the room. The question: “What is an authority site?”
An authority site is content-driven website that is a respected and trusted source of information. It is a larger site that delivers real value through its excellent editorial standards. This makes people trust the advice and recommendations from the site.
Authority sites = large, content-driven sites with multiple traffic channels and revenue streams.
Basically, they’re a business in the form of a website.
Importantly, they can be built without selling any physical product. In fact, the way we like to build them, authority sites are blog-style sites in which the main commodity is information.
This makes them extremely attractive as assets since:
- There is no physical inventory
- There’s virtually no customer service
- They can become almost entirely passive later in their development cycle
Additionally, since it’s extremely easy to publish a website these days, they’re easy to bootstrap and can be started (theoretically) for under $100.
This is one of the reasons authority sites are attractive to people: they’re a very realistic way for people to build thriving businesses that produce passive income without quitting their 9-5 jobs.
Of course, the more you invest, the easier and quicker it is to build, but the point is that, in terms of raw percentages, the ROI on authority sites can be nutty.
Here’s perhaps the most important characteristic, however…
…authority sites have diversification built in.
Like any long-term investment, diversification is the key to success. It’s a lot like investing in financial markets. You don’t buy one stock and hope for the best; you buy a bunch of them that all come from different places to reduce risk.
It’s not tough to find horror stories of people getting penalized by Google, having their Facebook accounts cancelled, or getting banned by Amazon. The authority site model inherently protects against this kind of event risk.
What’s that look like?
Diversification of Traffic
Having multiple sources of traffic protects you against catastrophic losses of traffic.
All search engines and all social media platforms have terms of service, and all of them ban people for perceived egregious offenses, which can happen to anyone, even if you’re not trying to “game” the system. If you only rely on one source of traffic, and that platform bans or penalizes you, your business can disappear overnight.
The authority site model diversifies by generating traffic from multiple sources.