How to Monetize Your Blog & Make Money
Posted on 5th November, 2008
I planned to write a series of articles based on a formula that in my humble opinion sums up the â€œsecretâ€ of success for any blog. The formula is
Blog Success = Truckloads of Traffic + Good Monetization Technique + Good User Experience
Now when it comes to blogging, I must say that I am not a full time blogger and admittedly, there are other full timers who might have put the formula into practice, whether intentionally or not, and make tons of money out of it.
JohnChow.com comes to mind when we talk about this, the guy who made USD34,350.93 from his blog in October alone.
Well, it goes to show the sky is the limit when it comes to making money from your blog.
In general, this formula works regardless of whether you are trying to make money from blogging, affiliate programs, AdSense, eBay or whatever.
Some of you may recall that a couple of month back I wrote the first article of the series titled â€œTraffic to your Blog â€“ A Recipe For Success.â€ A follow up to the first article is long overdue and I think itâ€™s about time for the next one in the series. The second factor that Iâ€™d like to talk about is â€œGood Monetization Techniqueâ€.
If you have been blogging for sometime, you may already know that there are many ways to monetize your blog. From AdSense to promoting affiliate programs, and from writing paid reviews to selling direct advertising on your blog, the choices are endless.
Rather than listing all the monetization options available under the sun, Iâ€™ll try to discuss how to best monetize your blog in general.
The first question you need to ask yourself is that do you really want to make money from your blog? Perhaps you just want to share you opinion and making money is just a secondary goal.
Or perhaps commercializing your blog will compromise your integrity as an independent blog writer and if thatâ€™s the case, then this article is not for you.
The reason I ask is that there has to be a compromise between the quality of your content and how far you are willing to sacrifice userâ€™s experience by having advertising in your blog.
The best way to make money from your own blog would depend on your blogâ€™s niche and the type of visitors it attracts. If I can make money from AdSense, it doesnâ€™t mean that you too will make lots of money from AdSense, although the chances are, you probably will because itâ€™s the most popular way to make money from blogging.
Similarly, if you can make money from paid reviews, I donâ€™t think I can make as much from this blog because I doubt I can churn out paid reviews as fast to generate as much income as you. Not to mention the Google penalty Iâ€™m trying to avoid for writing paid reviews in my blog.
So What Works Best For You?
The trick is to test to see what works best for you in your situation. If you run a finance blog, an ad that offers tax software might appeal to your readers.
Similarly, if you blog about making money on the Internet, your readers might response to ads related to how to make money online.
Now letâ€™s look into several monetizing options in more detail.
Content sites are best monetized with contextual advertising programs such as Google AdSense which is easily the most popular ways for bloggers to monetize they blog.
The ads are targeted and easily integrated with your content.
That said; do not assume right away that AdSense is the best monetization option for you. If your blogs belong in a popular niche such as entertainment or technology it would work great but if you blog about some obscure topics such as Qubit Field Theory, you would probably end up getting lots of Public Service Ads which doesnâ€™t pay you anything when clicked.
Like everything else, you need the traffic in order to make money from contextual advertising. It wonâ€™t make you rich overnight but itâ€™s a good option to start with.
CPM advertising is ad programs which pay you for the each ad displayed on your blog. This option is best for blogs or sites that arenâ€™t attracting enough targeted advertisers or the readers are less likely to click on your ads.
CPM (cost per thousands impressions) may pay you around $2 for 1000 impressions for instance but typically the pay out is rather low these days.
The downside of this is advertising option is that you really need a lot of traffic to generate a reasonable amount of income. Once you past the minimum traffic threshold, everything should be rather straight forward.
Direct Ad Sales
Direct ad sales is a great way to monetize your blog since thereâ€™s no middleman to take some of your profits. You can set you own ad rates and have more control over the advertising and payment options as it increases the amount and type of ads you can sell and let you specify when and how you get paid.
The main disadvantage is that since itâ€™s up to you to find advertisers, you could end up with many unsold inventory especially when you are just starting out.
In addition, youâ€™ll also open yourself to potential disputes as some buyers might ask for a refund. Itâ€™s therefore important to make your terms clear to potential advertisers before they sign up so that any future dispute can be resolved amicably.
If you are planning to offer direct ad sales from your blog, I suggest you check out the advertising script from OIOpublisher that help you manage and control your own ad sales easily. I am currently using this script to manage the direct ad sales in this blog.
Promoting Affiliate Programs
Once you get to know your readers closer, you might want to move into promoting affiliate programs. Unlike, AdSense, promoting an affiliate program require more than just plastering banner ads in your blog.
You can potentially make more money from affiliate program but since it requires some action from the readers in addition to a simple click, the conversion rate could be a lower.
Iâ€™ve written several articles regarding affiliate program in this blog which you may want to check out
- Affiliate Program Tutorial â€“ Mastering the Basics
- Affiliate Marketing – 5 Tips for Success
- Affiliate Marketing 101 â€“ Almost Everything You Need to Know to Get Started Making Money with Affiliate Program
- How to Select Suitable Products to Sell On Your Blog
- How to Make Money from Affiliate Programs With Your Blog
It takes time and some effort to make money from your blog. The most important thing is to never give up and continue to focus on the areas of your strength.
Do not put all your eggs in one basket, diversify your income stream as much as possible.
When one method fails to work, at least you have five other sources that are making you money.