Do –or Don't– Put All Your Eggs in One Basket?

The plane crash that carried Polish leaders to a memorial for the massacred World War II officers in Russia was tragic beyond measure.  The President, the head of the National Security Bureau, the top generals of the army, navy, air force, and special forces, along with the head of Poland’s Central Bank, and many members of Parliament all died together, in a single crash. It was stunning in the enormity of it – causing both sadness and wonder.

Many have wondered of the wisdom of putting so many of the country’s leadership into a single aircraft. It certainly has been on my mind. I remember when, immediately after 911, Americans were told that their President and Vice-President were deliberately kept in separate locations. Anyway, I couldn’t help thinking whether there were lessons for business here, or even more specifically, for the internet marketer.

“Don’t put all your eggs in one basket,” the advice goes. The meaning is that if something happens to the basket, at least you have some eggs that survive. Is that “scarcity” thinking – or just common sense?

On the other hand, a favorite expression of internet marketers is, “laser focus.” Find what works and stay with that one thing; avoid distractions.

Wait! Is there a bit of dissonance there? Which is really better: focus or diversify? Which is the better advice for marketers: perseverance or flexibility? Would you like to know which outlook works best? Or as Mike Dillard would say, what works now?

Help from known business leaders – Can it help?

I love famous quotes.  They can inspire and guide. See if these statements help:

“Concentrate your energies, your thoughts and your capital. The wise man puts all his eggs in one basket and watches the basket.” – Andrew Carnegie

“If you focus on results, you will never change. If you focus on change, you will get results.” – Jack Dixon

“Wide diversification is only required when investors do not understand what they are doing.” – Warren Buffet

“The trick is to learn from your mistakes. Just do your best to limit your risk. Focus every day, keep trying, learn what works, and don’t torture yourself when you take a wrong turn. Just notice it, learn from it, and change your approach.” -Rich Schefren

So what do these leaders say?  Is it better to be laser focused… or to be flexible and ready to change?  It’s a bit hard to fit these bits of advice together.

At first Carnegie seems to support “laser focus.” Choose one thing and go for it with all concentration. Yet he also says, “watch the basket” so that, as Schefren says, you can learn what works and what doesn’t and make changes accordingly.

Dixon values change; however, random change is time consuming and wasteful. Buffet values understanding. Careful change, change based on understanding allows one to change to what works. Understanding comes from two sources:

• It comes from clear information provided by others. The challenge here is what others? Mike Dillard has recently promoted a monthly magazine called What Works Now – with articles by internet marketing experts selected by his staff. I would agree that all of the articles for the premier issue (March 2010) are written by trusted experts, so Dillard is onto something, especially if it can save one time. On the other hand, the issue provided information on many strategies, and even Dillard has stated separately that it is foolish to try to be an expert in every strategy.
• It comes from personal research.  Call it split testing.  Call it planned trial and error (not random trial and error) learning. Call it focused incremental improvements.

So, should you put everything in one basket? Should you bet the farm on one internet marketing strategy? Should you concentrate on one marketing strategy with a laser focus? Well, yes. But count the “ifs.”

1. Yes – if it is a solid strategy to begin with.
2. Yes – if it is the right strategy for you.
3. Yes – if you are flexible about it, willing to fine-tune it and change it into something better.

So, sure – put all your eggs in one basket.

But know this: It is highly risky. In the end, it comes to good judgement. It is premature to make solid conclusions on the “accident chain” that caused the crash of the flight from Poland with its leaders on board. It has been speculated that there was much pressure on the pilot to “get there” – which may have affected his better judgement. Despite foggy conditions and despite being told to divert to another airport, he persisted with several attempts to land at the foggy airport, crashing into the trees.

Many people enter the world of internet marketing with essentially a poor understanding of “what works” and poor judgement as well. Many are so focused on “getting there” (getting rich) that they crash continually. Many others are so distracted by the powerful copywriting on the squeeze pages of the pros that they are likely to remain internet marketing consumers, rather than internet marketing successes.

We must invest in our learning, don’t get me wrong. But again, judgement and wisdom must be used to invest in the right learning resources at the right time.

“Peak performers in the 21st century will be comfortable with ambiguity. They know they will never have “all” the information. They know that the rules are constantly changing, and yet they play “flat-out” because they expect to win. They know that action and direction in the midst of chaos are STILL the key to leadership and success.”  - Philip Humbert

You might also want to see these related posts:

1. Staying the Course
2. Confounded by Change or Creating Change – Which Will Be True of You?
3. Internet Marketing Leadership Myths | #2 Newbie Leaders Can’t Be Trusted
4. Marketing Strategies – Marketing Tactics | What’s Your Marketing Sweet Spot?
5. Collaborative Entrepreneurship is Essential for Internet Marketers