Wednesday, March 26, 2008

So How Much Can You Realy Expect To Earn From Your Blog

Separating the Myths from the realities of earnings from your blog

Facts, Fiction, Dreams and Everything In Between on Expectations of earning big money from your blog ( I will quantify that by saying big money ranges from enough to live on upwards )

So You Have A Blog and Want To Get Rich Quickly

Is It Going To Happen Sorry To Disappoint you in 90% of cases
NON , NO and "In Your Dreams

So what can you expect and what are the criteria to earn money from your blog

The most important factor in defining your earnings is Traffic / Visitors which depends on the following.

Traffic / Page Views

1. Popularity of topic ( Some sectors are super popular like Entertainment, Fashion , Food, Technology )

2. Style of Writing ( If your writing style is easy and interesting to read and not to Airy Fairy or Complicated )

3. Information or Personal ( A Blog providing easy to read help on a specific subject with a lot of other similar posts will gain more visitors than a blog talking about your good or bad day )

4. Age of Blog ( As a blog ages it's visitors increase through word of mouth or links )

5. Design Of Blog ( The blog should be easy on the eye with content above the fold ) If a new visitor comes to your blog and sees nothing but adds without writing . Will they take the time to scroll down , You may earn money from the click but will you gain a new visitor to revisit your blog.

6. Optimized for search engines ( This is a big subject on it's own check out our sitemap for some of the posts talking about Optimizing Your Blog ( SEO )

7. Easy Navigation ( If visitors come to your blog make it easy for them to find other posts related to the post they came in from and provide a way for them to navigate the blog for other similar posts ) Most popular method is Label Clouds

Traffic ( Can improve through SEO by leaps and bounds if blog is optimized ( Search Engine Optimization )

As you can see Traffic / Page Views is the single most important factor in how much you earn but there are a number of others

Possible Advertisers / And How Much You Earn PER Click
The difference between what advertisers pay is critical some will pay up to $10.00 for each click ( usually in the finance market Mortgages, Loans, Credit Cards Etc. ) but most pay much less than that . Advertisers fall into two quite distinct types.

1. Those selling a product or service
2. Those trying to buy traffic from your blog to theirs for the cheapest amount they can

The difference in potential earnings between these two types of advertisers is significant with

Those selling a product or service very dependent on if your visitors are the type that will buy their product or service, if so they may well pay very well ( Great if you can combine both Advertisers Who have a product or service to sell and visitors who are willing to spend money ) WIN WIN. Lets give an example you have written a post about the new horse barn you have erected and the adds are for horse barns there is a great chance your reader may leave your blog and go to an advertiser to find out how much etc. I suspect an advertiser would be willing to pay a reasonable amount for a live prospect for a new horse barn.

Those trying to buy traffic from your blog to theirs for the cheapest amount they can these are the ads that say things like find more of this in our directory, or play game for free, or get a free widget for your blog and pay very very very little plus least likely your visitors will click the add seen them all over the internet on thousands of blogs.

The number of clicks you receive and the amount per click,

Once again you can do something to influence this

1. The more advertisers who are targeting the content of your post the better ( It is an auction based system , not just by the highest bid but also based on quality score of Advert, Advertisers Landing Page and Your Post. You cannot influence the first two but you can influence the quality of your post .

Where you advert is on the page also has a big effect , the optimum place is above the fold but finding the correct mix between pi??ing of your visitors and gaining the highest number of clicks is a balancing act.

Below is a graphic from Google's Page on Best Placement for adds check out the page for more information

Google Guide for best placement for adds suggestions

Now one of the biggest problems for bloggers is assuming the more adds you have the better ( Not true ) the most likely scenario is the price per add goes lower and you could lose your visitors for 2 cents not 50 cents that you may hope for.

So now I suppose you want some meat HOW MUCH PER THOUSAND PAGE VIEWS

It does really depend it could be as low as $2.00 per thousand for the worst areas but up to $50.00 per thousand if you get it right but if you can get your CTR to 5% ( Number of Clicks Per Hundred Ad Views ) and your price per click at about the mid range of 20 cents you can work it out from here

1000 page views = 50 clicks ( 5% )
50 clicks at 20 cents per click = $10.00 ECPM

So if you get 650 visitors per day viewing 1.5 page views per day this is what you might expect to earn $10.00 per day

If you are getting those figures or better you are doing well and I think close to the average

Now just a few additional notes if your visitors are all loyal readers of your blog they may well become adblind over a few months and less likely to click, but if your visitors come from Search Engine Results or Blog Search Results your earnings will be much better.

I will try to discuss the differing options on ad types, sizes, and other information that may effect your earnings in a later post but this post ended up much longer than originally planned


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