Tunnel vision is a term that is synonymous with having a narrow focus. It also means having such an intense focus on something that other things are inevitably blocked out.
It’s easy to have tunnel vision without even realizing it. We do it every day, some more than others.
Tunnel vision isn’t necessarily a bad thing. For example if you were taking a test like the GMAT you would want your entire focus to be on the test. This is a good use of tunnel vision.
There are other situations where tunnel vision can be detrimental, especially when it comes to your finances. For example back in 2006 everyone was so focused on the rising value of homes that few were able to remove their blinders and see the implications of home values rising so quickly.
Everyone – even famous economists – thought that housing prices would continue their upward trend forever. People who thought contrary were literally laughed ata on television.
Today I want to talk about why it’s financially important to avoid tunnel vision.
That website makes how much Money?!?
I’ve been around the personal finance blogosphere for more than five years now. Rarely do I see people move from the personal finance blogosphere into other niches. If anyone starts a second blog it typically is a second personal finance website.
Now, I don’t blame people for starting a blog in a niche that they know others are making money in, but I truly think people are focused on one particular niche than another – in this case personal finance – due to tunnel vision. People are afraid to look into other opportunities for different niches and ultimately end up missing out on some huge opportunities to make a lot of money. And trust me, if there’s one thing personal finance bloggers want to do it’s make more money!
I have recently started to get emails about websites that are for sale. One website that was for sale recently was eWrestling News. This is a 15 year-old wrestling news website. Now, most people would likely think a website like this would never make much money. In reality it makes a lot of money. Annual revenue for this site is $270k and annual profit is $218k. The more you read about the details of the site the more you will see that this site is pretty much on auto-drive with a lot of the work outsourced – outsourced at great rates I might add. The site was listed for sale at $1.3 million.
Another listing that caught my eye was an online beauty course website. While the URL was not made public unless you inquire, here’s a description of the site:
Being offered for sale is a 5 year old makeup tutoring website. Revenues are generated through the sale of online makeup courses and through the sale of makeup kits which are 100% drop ship. Traffic is driven to the site through paid advertising on Facebook and Google AdWords and through direct and referral searches. Included in the sale is the domain and all content which also includes: – 7000+ paid members – 55 000+ newsletter subscribers – 41 000+ Facebook fans – 77 professional training videos (copyright owner) – 278 page makeup course handbook (ebook format) – 7 beauty ebooks for members – Psd graphics used for website and advertising, and 27 other domains.
This sites annual revenue is $491k with an annual profit of $291k. What an awesome online success story. They took an approach that I am highly envious of: a physical product that is entirely drop-ship paired with an online educational course. The site was listed for sale at $1.1 million.
To clarify it’s not so much the fact that these websites make this much money that leads me to believe people have tunnel vision. What makes me think people have tunnel vision is the way they react when they find out how much these sites make. It’s typically one of shock followed by re-evaluating their plans. But honestly if you spent any time researching what websites sell for you would have found this information within a few hours, if not quicker.
In general people, especially millennials, are desperate to make money online. There is a ton of opportunity out there if you are willing to get rid of your tunnel vision and preconceived notions of how to make money online. There is also virtually no limit to how much you can make.
I realize I’ve focused primarily in online income in this post, but this concept is relevant far beyond online income. In general I’ve found that those who are most open to new opportunities are the ones who are most likely to be make more money and be financially successful. It’s easy to keep doing what’s “tried and true,” but a large majority of people seem to be turned off by people who are open to new opportunities to increase their income.
If you want to create multiple streams of income, create a successful business that gives you the financial returns you desire, or just want to become less reliant on your 9-5 income it’s essential to avoid tunnel vision.
How have you avoided tunnel vision in the past? Do you agree that it’s easy to miss out on big opportunities because of tunnel vision?
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I think one reason that people are turned off by “diversifying” income streams online is that it seems like giving up creative integrity. My first attempt to make money online was a food blog, which kind of succeeded in a crowded space, but was a lot of effort to get from okay to good which is why I shut it down.
I will say, a certain amount of tunnel vision is required to start making money, and once you’ve niched down it’s certainly easier to expand within your focus area rather than elsewhere. Of course, Pat Flynn manged LEED, Passive Income and a Food Truck website all using the same SEO technique. Risky, but profitable.
To get pasts the tunnel vision mentality you need to be confident in your own abilities and feel comfortable with other topics. Difficult to take a leap on a business or web site on a topic you no nothing about, but with some education it can be overcome.
Wow, talk about solid income from a site. It just goes to show you that if you create something others want that it has the ability to be really successful. That being said, I think you’re dead on DC. I think there’s a balance to be had between milking something for all it’s worth and looking outside your bubble ( or tunnel in this case) for other opportunities. The latter may involve more risk, or some sort of risk, the payoff can definitely be there.
I have problems with tunnel vision sometimes in that I’m so focused on one thing that I disregard other ideas. I see your point regarding the blogs, but I think it’s possible that many bloggers may just feel more comfortable or passionate about that topic. I know the makeup website can be a money-maker as I’ve heard of many “YouTube celebrities” who make videos about that topic (I don’t know why I know this?!) Also, I think there’s the thought that there’s more money in personal finance websites…some people like to put up adds/links to credit cards, financial services, etc…that’s where the money is…well at least that’s what many may think. Pretty awesome that the wrestling site makes a good income, I’m sure there are many fans. The other topic that I could see myself excited about would be sports…though there are so many other ones and they are so much more in-depth than I could ever write.
What a great post – and very inspiring!! I tend to get very caught up in how people are making money online and then want to duplicate that, rather than find my own way. You are right that there are literally thousands of ways to make money online. You have to do what works for you and be willing to take risks. I know I’d be more productive/successful if I just stopped reading about “how everyone else is doing it” and instead focused on what I can bring to the table. Eventually…I’ll get there, haha :)
Awesome post DC! It’s absolutely easy to miss out on big opportunities because of tunnel vision. I think that sometimes it’s also a comfort level for many people. Going with what you know is a lot less scary than venturing out in new territory and the risks that comes with it. But that also really limits your potential, both in your income and in personal growth. Loved this food for thought!
I think people miss out on opportunities all the time because of tunnel vision. It’s easy to get caught up in what we know and not allow ourselves the opportunity to get caught up in what we don’t know. One of the things I love best about being an entrepreneur is that I now have the opportunity to consider endless possibilities for my business or other businesses. I almost have the opposite of tunnel vision which is another challenge in itself.
Hannah UnplannedFinance I think you should write a blog (or a few blogs) about your experience in the food blogging space. I think there is a lot of niches that are really crowded, personal finance included, and it might make sense to look beyond a crowded space to maximize revenue.
DebtDiscipline I don’t think anyone advocates starting a niche site about something you know nothing about, but I do think people focus on crowded niches way too often. After all, a personal finance site is a much easier niche to write in than something more specific, like WWE wrestling. But I think it’s worth exploring other niches and I truly believe a lot of bloggers have missed out on huge revenue/income opportunities due to tunnel vision.
FrugalRules I think there is a risk in not looking outside of your bubble, though. There is the risk of missing an opportunity that otherwise would have made you independently wealthy. But for all practical purposes it’s less risky to stick to a tried-and-true method and extract a reasonable income each month.
Andrew LivingRichCheaply I definitely see the appeal of the personal finance space. After all, I did join the space myself haha. While I think blogging and side hustles should be enjoyable, if you can get past the “choosing a topic you are passionate about” and instead get into a total business mindset where you choose a topic that is the most profitable, you may end up choosing a topic that 99.9% would not consider because it’s too boring, not interesting enough, etc. Some of the most popular searches to my site are on random things like “sewer drain-out issues” and “sinusitis” and I only wrote 1 or 2 posts on each topic.
Wow – those owners built some amazing websites and are truly reaping the benefits of their hard work. I see tunnel vision all the time in investors – so focused on numbers going up ALL THE TIME, which is simply not possible. They also overlook that there are times to welcome a loss and the ability to actually turn into a financial win. Of course, I am guilty of having tunnel vision too. :) When I started The Heavy Purse I was very focused on the books, not so much blogging or anything else, Then the blogging became more important but I was resistant to do a lot of social media, than I realized how important the social media, commenting, networking all was. There is a world of opportunity but you definitely have to open and not get tunnel vision.
Sarah Brooks I think you are doing great Sarah and I think there is some true value in following what others have done successfully and replicating it. But I do think that focusing on your own ideas and testing those ideas is where you can really start making a material amount of money. After all, the person who put together the makeup tutoring site is likely going to get a $1M payday plus all the income she/he has already made. That’s a lot more than most people can say.
Christina@EmbracingSimple I’m glad you enjoyed it Christina! I think the reason the personal finance space is so crowded is because people know there is a lot of information out there so anything they don’t know they can learn and, in turn, create their own unique content on it.
blonde_finance I think that’s a huge advantage that some entrepreneurs have over people who side hustle. If you are a full-time entrepreneur you can truly prioritize what you focus on.
ShannonRyan I think you have been able to avoid – or correct – tunnel vision much better than most bloggers and entrepreneurs, myself included. It’s been great to see the positive changes you’ve made on your site and how your business has evolved.
I once thought about buying the URL blogonblogaction.com to write about blogs about blogging. It was just a little too ridiculous, even for me.
I’m no expert, but crowded spaces are crowded because there is money to be made there.
I think that the most successful food bloggers aren’t primarily content creators. They are successful in selling books, courses, etc. Their blog is a place to get discovered, but most (not all) build a personal brand more than they build a blog. I’m still figuring out whether or not this is the case in PF, but I think it is.
I definitely agree that people miss out on opportunities because of income. I know I wasn’t always the most open-minded person. Growth and maturity is what help me change my though process.
Until recently, I had no idea that somewhat obscure websites (like that eWrestling News one) could sell for so much money!
I love the concept of this post; tunnel vision really can hold one back. I am just now seeing for the first time all of the ways to make money online–and it’s so inspiring. I’m glad that people are willing to share so much valuable info! Gives newbie bloggers like me lots of hope! :D
Interesting post DC. I feel a little torn with this concept – on the one hand, keeping an open mind for other opportunities is the only way you’ll ever discover anything else, but on the other, I see real value in keeping a focus in one area, and doing the best you can with it. I guess that assumes that you’ve first considered a range of options, then put your head down to make the best of it. Spreading yourself too thin and not committing to one course of action long enough to make it work are potential issues, but I do see your point about keeping your mind open to other possibilities. I’m absolutely suprised to hear what those sites are earning! Perhaps I will start floating a few other ideas in the back of my mind…
Hannah UnplannedFinance Yes, crowded spaces are obviously crowded for a reason. I don’t think it’s just about money, though. I think some niches – like personal finance or parenting – are simply easier to write about than the more specific niches. I don’t know many people who would be willing to put the time and energy into building a successful makeup blog that monetizes partially off of a training program. But it made whoever it was a millionaire within 5 years of launching the site.
Niomi@FinanciallyConfident The great “story” of eWrestling news it he fact that it makes nearly all it’s money from pure volume. They get a lot of traffic and make a large amount of money from banner ads.
It’s almost better to be a noobie blogger because you still have your own unique ideas and viewpoints. I think most of the regular bloggers (myself included) generally just follow the pack and make a little bit of money off of their sites instead of truly creating something that can sell for millions.
Jason @ The Butler Journal It’s interesting how difficult it is to be open-minded, and I agree that you need to mature to actually become open-minded. I’m trying very hard the next year or so to be open-minded about opportunities and ways to make money.
Jason@Islands of Investing You bring up a good point about staying focused on one thing for long enough to make it profitable. I think a lot of people jump from idea to idea, but I think there’s a risk for those who are truly committed that they end up shutting out new opportunities. It can be life-changing to pivot to an idea that is profitable.
Looking forward to seeing your site being sold for multiple million $ soon DC ;)!
It’s a tough one and even in our non financial lives it’s tough to avoid tunnel vision.. I’d say having trusted advisers is a good way of doing this i.e. we can’t notice what we don’t see.. That’s the benefit of having a coach I’d say
mycareercrusade Great point about having a coach. It’s pretty incredible how easy it is to put up the blinders and shield yourself from opportunities.
As far as my site selling for multiple million $…maybe in my dreams ;)
One technique that I use to avoid tunnel vision is to set up a ‘life board of directors’. It’s so easy to get caught up in your day to day flow and miss out on the opportunities that are out there. Surround yourself with a few select mentors, whether it be a past colleague or manager, a respected family member, someone from your industry, etc. Check in with them every so often and they will provide you with perspectives that you would never consider on your own. It’s always good to take a step back and look at the big picture. Sometimes you may have to deviate from the path, but a great opportunity may lie ahead.
Financial Tour Guide I think it’s great to have mentors. The only issue I’ve ran into with mentors is I simply don’t have time to meet/talk to them as I’m typically trying to cram as much as I can into my day. Perhaps that’s leading to tunnel vision ;)