There’s something about the start of a new year that brings out a desire for change – I suspect it’s because of the ‘bills’ that come in from all that Winter fun – whether real credit card bills, or the dietary debt you need to pay for from extra turkey and stuffing!

But whatever it is, it’s easy and popular to predict what will work at the start of the new year, and plan accordingly – and I’m no different. So here’s my evaluations and recommendations for 2007…

• Hype is King (or Queen). Last year it was ‘Adsense is dead’ or the ‘Death of Internet Marketing’. This year will be no different. I consider hype a desperate way to get attention, but these are desperate times, and hype DOES work. I predict we’ll have several hype-driven offers this year, and they will do well. What this mean is simple: for most people, this will mean psyching yourself up to read between the lines, and avoid the hype – or else expect to pay big prices for a report or manual that may end up tucked into your closet!
• Adsense will drop further. I’ve noticed Adsense revenue drop down, and I’ve seen others comment on it as well. Adsense is a great passive income system, and for the person trying to make a bit of extra cash, it’s ideal. But for those hoping to make an career out of it, and get those $20,000 checks, I’d recommend diversifying that visitor traffic instead – build up email lists, use other affiliate programs besides Adsense, and even create products to sell. Don;t ignore Adsense – just don’t plan on living off it solely in 2007.
• Elbow grease will be needed more than ever. Related to the previous observation, passive income will decrease. Frankly, if it’s possible to do something without effort, then you’ll only have a short grace period anyways until someone decides to ‘spill the beans’, and everyone jumps on the bandwagon; from there, the market becomes saturated, and everyone loses. On the other hand, if you pick a market that requires a bit of work, then the chances of others following is decreased – and you could have more breathing room, and a more time to earn.
• Consumers will get more savvy about IM. Over the past couple of years I’ve watched many over-hyped products come and go – mostly go. And the result is a lot of anger from people tired of spending money (I understand – I still grimace when I think of all the ‘Corey Rudl’ products I bought over the years). It will be harder and harder to sell products that help other ‘get rich quick’. My recommendation? Don’t stop if you’re in that market – but try and diversify into other markets as well. And always undersell and over deliver – key to making people happy.

It’s no coincidence my recommendations mainly involve diversifying. Using any one source of income is asking for trouble on the Internet, where trends and imitators mobilize lightening fast. What works one month can be imitated, advertised, and become useless the next.

So look to your sites and how they can be alternately marketed. Perhaps an email form here or there to build up a list, or better targeted affiliate programs than Adsense. While it may be a bit more work, in the long run you’ll be using many more baskets for your eggs – and avoid ‘egg’ on your face!