This is the first part of a two part series discussing the most profitable type of blog content.
Some blogs are very much resources, they contain useful information to help people perform a certain task. Other blogs are news blogs, while others exist purely for the entertainment of their readers. In other words the blogs are there to educate, inform or entertain, but which content model makes the most money?
Deciding the answer to this question means understanding how money is made online, which is a very simple equation. Profit from a blog is equivalent to traffic multiplied by the value of that traffic, minus the costs of running the blog. Note I am simplifying here to help you decide which type of blog to start in the future, but looking at the different blog monetization strategies available for each type of blog can help reveal their profitability.
These blogs are all what can be considered different types of “Flagship” blog, as opposed to niche blogs.
Monetization Advantages For Resource Blogs
Resource blogs are filled with useful information, such as how-to guides and longer blog posts. They are there to educate. Examples are Zen Habits and Dosh Dosh. Their advantages for monetization include:
- Brand trust. Due to the authority of a resource blogs publications if they recommend a product a high conversion ratio is achieved, selling more items.
- Targeted readership. People read them to find out how to do something. Products can be sold by them to help the readers achieve their goal. With a news or entertainment blog the readers don’t have such a well defined purpose.
- Sensible launching platform for in-house products. Higher profit margins can be achieved by selling your own product, rather than simply selling others as an affiliate. On a resource blog with a strong brand and a targeted readership it is the perfect site to expand into selling your own products.
Monetization Advantages For News Blogs
There are mainstream news blogs and those that focus on a specific niche, but both have these monetization advantages:
- Big brand ad deals for big money with companies like Federated Media
- Long term sponsorships. It is not uncommon for there to be long 6 month contracts sponsorships, sometimes for a particular category of news. News blogs often run on sponsorships and due to the longevity of those deals their earnings are often more stable, making them sell for a higher multiple. However, there is a disadvantage that because of the 6 month contact the blog cannot increase the cost for that period even if it increases in popularity. That is why finding sponsors for different categories of the news blog and attaining them at different times is a good idea.
Part 2 will be coming soon. Subscribe to the RSS feed to have it sent to you
Comment by Real Web Today.com | 2008-05-30 15:13:10
I am a new blogger so this post is very interesting to me. Thanks for the insight you bring.