Website Monetization planning is my next step in creating an internet business.
After I have set my blogging goals (see How to Start A Blog), made a list of potential Blog Topics, and analyzed the competition (see Blog Topics – Narrow It Down), it is time to see how much money each subject on my final list can possibly convert into, which includes getting a feel for how much traffic each subject will generate.
Since my goal is to make money blogging – this analysis is important to me. For a personal site, this may not be necessary. The only caveat I have is that sometimes a webmaster may start a site that is personal in nature and a few years down the road may change their mind and try to monetize it. By doing a bit of groundwork up front – it may be easier to make money from a blog later on.
But how do people earn money from a blog? This is a question that I get quite often from people that don’t own websites. This is a question that has many answers – and it just depends what type of business the blogger wants to get into.
A few of the more common and popular options are as follows:
- Google Adsense – This is by far the easiest to implement and the most low maintenance program around. Basically the blogger signs up for a Google Adsense account. Once approved, they copy the code that Google provides onto their website wherever they want an ad to appear. If a visitor clicks one of the ads – the blogger makes money. There are a bunch of rules and options to follow – but that is the gist of it. This revenue model is called “pay per click”
- Affiliate Programs – This revenue model is based on commission. A blogger signs up to be an affiliate of a company that sells a product – say Macy’s for example. Once approved – the blogger displays an ad on her site for that store or product. If a reader clicks through that ad and makes a purchase then the blogger gets a certain percentage of the sale. Some affiliate programs even pay out per lead – this is when a reader clicks the ad and performs a desired action – like filling out a form or submitting an email address, etc.
- Ad Networks – BlogHer is an example of this revenue model. Again, the blogger applies to the program and once approved he or she inserts the code onto the blog. Every time a visitor arrives at the site and views a page – the blogger gets paid. This is called “pay per impression”.
At this stage in the game – website monetization planning involves creating a roadmap for how I plan to make my new site turn a profit. If I plan to display Adsense ads, I will use the free Google Adwords tool to get an estimate of how many people are searching for every keyword (and several related keywords) on my list. I will also use this tool to estimate a range of how much each click will generate.
Although this plan is based on estimates – it still gives me a good idea of the direction in which I should take the site. Let’s say one of my potential topics (I know this topic is ridiculous, but bear with me) is Pink Doilies for Valentine’s Day. Hey, I just might be able to achieve the number one spot in Google for this term but if no one is searching for it – I still won’t get any traffic. By estimating my traffic numbers, I will see that this topic is way too narrow and maybe a broader subject of Valentine’s Day Craft Ideas even Holiday Craft Ideas may be a better choice.
The same thing holds true with estimating the revenue generated by each click. If the topic is popular and I get lots of traffic but I will only be able to get a very low income per click (and remember not everyone clicks) then again – my revenue from this model may be very low compared to the amount of effort that I will have to put in to build the website.
For the sake of example, suppose that this craft ideas topic doesn’t look like it will convert very well under the Adsense program. And let’s just say that I am an extremely crafty lady with lots of original ideas and creations that I have my heart set on sharing with the rest of the world. I still might be able to turn a profit by using affiliate programs to monetize my blog. At this point I would look to see what programs for craft related products are available. And I would look at their commission structure as well.
Now suppose I am building a personal blog and this website monetization thing is not what I want to spend time on right now. But I anticipate getting loads of traffic due to my sharp wit and sparkling personality. Down the line I may decide that I actually want to get paid for putting pen to paper and creating all this original content. In that case – a pay per impression ad network might be the right choice for me. And thinking about that up front is actually a business plan. A lot of these type of ad networks have more applicants than they can accommodate – so as I grow my site, I might take some time each week to research these possibilities and put in some applications. If and when these networks open up to new sites – then my blog will be on the list.
These are only a few of the easiest options available for monetizing a blog. Other examples include creating ebooks, email marketing, offering consulting services, and selling products.
All of these models contain one common factor – traffic. So evaluating a blog topic objectively and wisely is an essential piece of making money online.
This is part four in the How to Build A Website Series:
How to Start A Blog (part one)
Blog Topics – What is Yours? (part two)
Blog Topics – Narrow It Down (part three)
Website Monetization Planning (part four)
Return from this post about Website Monetization Planning to the Internet Business homepage.
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