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Diversifying is only good to some extent. You need to FOCUS as well.
"Diversify AS MUCH AS YOU CAN" is NOT VERY SMART. There are tradeoffs in diversifying: You need to acquire the knowledge of a new field and keep on top of things all the time.
Example: TGP galleries + SEO + AVS = enough diversification
TGP galleries + TGP sites + SEO + AVS + EMAIL + Design + Coding = You'll get lost and never fully exploit anything, and get stuck at XXX - XXXX $
Diversify into 2-3 branches of the adult biz (SEO, TGP, AVS....) but not more.
Then diversify all tools and services as well: Hosts, Registrars, Content providers etc.
And of course a whole bunch of different sponsors, covering the whole range of existing payment processors, and including PPS and Revshare
And I do not agree that you should run on- AND offline businesses for the purpose of offline being a 2nd "basket". I think it is safe to say that the internet is here to stay, and no diversification on/offline is required
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