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Monetizing Blogs

In stark contrast to the last post, Jasen Dowdell at marketing shift predicts that Bloggers will start to get more and more attention from Ad agencies. He predicts:

‘- Ad agencies will seek out A-List bloggers who have strong relationships with other A-List bloggers to head up their blog placement departments.

– Someone will step up and create a blog taxonomy that shows the key players in specific blog verticals. This will identify the “people to know” if you want to succeed with your blog pr campaign.

– Large PR Firms and Ad Agencies will spin off subsidiaries dedicated to blogs to increase their relationship with bloggers and appear to be experts in blog product placement and blog pr.

– Blogs will continue to increase their focus on specific areas whether these are niche verticals or niche subject areas.’



Read more of this interesting (and hopeful) article at Monetizing Blogs

No Money in Blogging?

Steve Smith from EContent writes that there will be no dollars in blogging in 2005 for bloggers or networks (like Gawker and Weblogs Inc) who are directly blogging. He writes:

‘The wild and wooly blogosphere itself will not make money for many, including blog networks like Gawker Media and Weblogs Inc. Nevertheless, blogs are already proving to be powerful audience retention devices for known media brands. Some B2B sites report that up to 10% of daily traffic now goes to columnist blogs. Blogging is less a business model than a thoroughly compelling communications model that keeps users coming back two and three times a day more effectively than standard content refreshes. Accept it and get sponsors for it.’

This is the second such article I’ve seen arguing this this week (the first was here).

Once again I wonder if Steve is perhaps being a little short sighted with this statement. I acknowledge he says this approach will not make money for many – leaving things open for a select few to make money blogging – but I would argue that quite a few have already stumbled upon formulas for making money directly from blogging and that 2005 will see the number of those making a living directly from the medium explode – likewise I predict that we’ll see those already taking this approach start to earn some very big money. In fact I think 2005 will see a number of bloggers earning $1 million and over. If they’re smart they will probably keep these figures to themselves – but it will happen – if not next year it will happen in 2006 for sure.

As I talk to pro-bloggers and reflect upon my own experience in two short years I’ve noticed that the trend is a for a very slow start to levels of earnings – but that there comes a tipping point where the growth becomes exponential. Most bloggers exploring the income side of blogging give up before the tipping point however and never see the reward for their efforts. Of course it is not just a matter of time and patience – it takes some smarts, hard work and a little luck along the way.

Update: Steve Rubel spotted this same article and has a few things to say on the topic also. I particularly agree with his observation about the lack of overheads for bloggers. My biggest overhead is my own time. The opportunity cost of me putting my time into another job or business is significant because I choose to blog virtually full time – however apart from this I have virtually no expenses apart from a small ISP, hostings, design and home office costs.

Update: Wayne at Blog Business World has also entered the discussion and writes – ‘As blogs become more deeply entrenched, within both the mainstream media and the mainstream consciousness, money will flow naturally in their direction. If other companies discover the power of blogs, as an advertising vehicle that returns highly targeted buyers, you can be absolutely certain that savvy marketers will put their cash into blogs.’

Blogs Are Business Support Tools, Not Direct Money Makers

Fredrik from CorporateBloggingBlog has an interesting post on making money directly from blogging and writes:

‘I’m not sure why so many people are looking for direct revenue streams from blogging. Or, well, I understand why. We all have to pay the mortgages. But I don’t think that blogging as such ever will be more than a small niche business.’ Read more at : Blogs Are Business Support Tools, Not Direct Money Makers

I have to agree with Fredrik – but also disagree. I think the majority of money to be made from blogging probably comes from other activities on the edge of blogging and not directly from the activity of posting articles. For instances blogging tools, support services (like providing advertisers for bloggers) and blog consulting are obvious examples of how people can make money indirectly from blogging – however I think its been proven that it is possible to not only make a few dollars directly from blogging – but to make a decent income from it. I know of a growing number of full time bloggers who sustain their total income from their blogging (most of whom are not willing to go public about it for fear of being copied). Of course this is a small number of people and is an activity that will become more difficult as more and more bloggers give it a go and compete – but I really believe that the market is big enough to sustain a good deal of bloggers taking this approach.

Average Blogger makes $20 to $50 per Month

WebPro New has an article on the rise of blogging and estimates that the average blogger is making $20 to $50 each month. I’m not sure how they come to this figure – I know many bloggers, 90% of whom make nothing from their blog. Another 9% might make a few dollars each month (probably less than $20) and then there is a very small percent who make good money from blogging. I guess if you average it out those earning big money would increase the average – but I doubt if you averaged out the millions of bloggers that you’d find $20-$50 is the figure.

‘Blogging is growing at a phenomenal rate with a new blog being registered every 7.8 seconds.

Blogs are being established by a wide range of people from individuals who simply want to express their thoughts through to corporate communication executives who want to influence their market place. Blogs enable information to be disseminated almost instantaneously. They are easy to set up, easy to use and they are easy on your audience.

The typical blogger makes around $20 to $50 profit per month which just about covers the costs of maintaining their blog. This income is mostly generated through Pay Per Click revenue from services such as Google’s Adsense, from affiliate earning through the recommendation of books and other products and from paid advertising revenue for banners and text links….’

Read more at Blogs Being Registered Every 7 8 Seconds

How big is the Blogosphere?

Clickz has a good article on the size of the Blogosphere which continues to grow.



‘The size of the blogosphere has doubled every five months over the last year and a half, according to blog analysis firm Technorati. Over that time, blogs have gone from being a word that sounded insulting to an online trend embraced even by a sexagenarian Massachusetts senator running for president. Given the frenetic pace of that growth, data charting the blog phenomenon have been vigorously consumed, and in some cases contradictory….

According to David Sifry, Technorati’s chief executive, the current number of blogs is now over 8 times bigger than the 500,000 blogs it measured in June, 2003.’

Read more at The Blogosphere By the Numbers

How To Plan Your Week Making Money At Home

How To Plan Your Week Making Money At Home is an interesting article with some practical tips on how to have a money making week at home on the internet…



‘Is it really possible to earn a 6 figure income on the internet? The answer to that is yes, but not everyone will do it! WHY?

The biggest lie told everyday on the internet is you can make money at home doing nothing.

“Join my program and I will build your downline for you. I do all of the work. This is so easy anyone can do it in their underwear. Buy my book and you will be successful.”And on and on…. We have all fallen for this at one time or another.

My book shelf is full of books I have bought online and never finsished reading. Who has ime to read all of this stuff and still actually work at making money?’

Internet Ad Spending Hits New Heights

ClickZ reports‘Internet ad spend topped $2.4 billion last quarter, according to the quarterly “Internet Ad Revenue Report” conducted by PricewaterhouseCoopers (PwC) on behalf of the Interactive Advertising Bureau (IAB).

The third quarter estimates mark the eighth consecutive quarterly increase for the industry and the fourth record-setting quarter. Q3 2004 represents a 35.3 percent increase over the $1.79 billion of the year-ago quarter, and a 2.4 percent increase over the $2.37 billion of the previous quarter.

“Historically, the second and fourth quarters are the strongest in advertising,” said Greg Stuart, the IAB’s president and CEO. “That the industry bested Q2 revenues is testament to the confidence and success marketers have found in the medium. As the experts predict, the holiday season should be a merry one for the industry.”

Revenue for the first nine months of 2004 totaled slightly over $7.0 billion, compared with the $7.3 billion in revenue reported for all 2003. Based on these numbers, 2004 could be a record year, beating the previous $8.0 billion revenue record reported in 2000, according to Pete Petrusky, director of advisory services at PwC.

The third-quarter figures are an estimate, based on aggregated data from the top 15 online ad sellers. These results were extrapolated to calculate the total estimated industry revenue figure. Actual Q3 results will be appear in PwC’s full report, expected in Spring 2005.’



Read more at Report: Internet Ad Spending Hits New Heights

These Traffic Numbers Are Real

‘Mention “audit” to David Barlin, vice president of marketing for I/Pro, a company that verifies audience data for about 500 small and medium-sized websites, and he practically gushes.

“They’re exciting,” he said, not at all defensively. “Really.”

That’s because he and the company he works for see a potential gold mine in independently auditing the traffic for all the sites that are not Google, Yahoo or MSNBC — the tens of thousands (if not hundreds of thousands) of commercial websites dedicated to niche subjects like business-to-business, chemical engineering, software development and online publishing. Since fans of these types of sites rarely make it to the mass portals, advertisers have been clamoring for ways to reach them.

Of course, Yahoo is fine if you want to peddle mass consumer items like, say, camera phones, vacation getaways and the latest Hollywood offering. But if you want to sell a new type of chip, manufacture routers or market a B-to-B website, you need to go straight to the people most likely to buy your product. To figure out whether a certain site will give a sufficient return on advertising, however, requires accurate traffic forecasts, something that has been lacking.’

Read more at Wired News: These Traffic Numbers Are Real

Minkmedia Launches UK Blog Network

Minkmedia is the latest network of Blogs to launch. This one is based in the UK and describes itself as:

‘Mink Media is a nanonpublisher. We publishe a series of weblogs (five so far) aimed at a British audience.



A weblog is a topical website, new stuff appears at the top, and it updates frequently (more than once a day). People are excited about weblogs (or blogs)–we basically think they are fun to read.’

Mink Media is run by Azeem Azhar and Shehnaz Suterwalla

They are offering a few opportunities for advertisers to partner with them – either as a premium sponsor (privately arranging banner ads etc), via Blog Ads or text ads via Adbrite. They are also running Google ads and Amazon affiliateships which is a good idea until they build up a high enough readership to run more premium sponsorships.

They currently have two main blogs running – these being:

Wanda Lust – a blog about Travel

Honourabloe Fiend – a blog about politics in Britain

They are open to being approached by bloggers wanting to join their network and I’ve no doubt we’ll see them add new blogs to their two current ones shortly.