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too soon
Technorati's facts (I use that word lightly) and figures are often a bit off the mark. And they deal in generalisations. This is a case in point. Blog revenue depends on a bunch of things, the key factors being: sector / subject focus, amount of newsflow, type of audience, reach / where you attract traffic from, and site optimisation.
150k uniques might mean 150k page impressions, or 1.5m page impressions, or 15m page impressions, depending on how many pages a typical user consumes. And this is what determines revenue for most of the bigger / pro- bloggers, since most of the larger blogs have CPM deals in place.
I run a blog that has anywhere between 600k-1.25m uniques in a month, and we're pulling in six figures over a year. But our average page impressions per user could be much higher, and as such so could our revenues. It's the nature of the beast...
My bet is that you'll pull in a lot of bookmarked / direct traffic? You have an army of followers. Our readers are increasingly coming from aggregated news sources such as Digg, StumbleUpon, Fark, Google News, Facebook, etc. And the thing is, we're seeing that 90% of Digg users bounce. It is what I politely refer to as 'in and out traffic', with the exception of StumbleUpon (which has a much lower bounce rate). I love Digg, and I use it every day, and this often reflects how I consume Digg stories. In and out.
By improving the website in order to increase participation / loyalty / browse rates, bloggers will get more juice out of their existing traffic, and that should add up to more $$$.
Anyway, we've come a long way... keep it up!
http://sethgodin.typepad.com/seths_blog/2008/09...
I should mention that I'm not Seth Godin trying to pump my own blog here. My readership is about 100 consistent per day and I'm making diddly squat (though I did just put up a few Amazon/Google Adsense ads so I should be raking in the pennies any day now)!
Just to be clear, the Digg traffic is *highly interested* in the article (hence the visit), but not necessarily interested in everything else on the website. In addition to that, we haven't optimised our site especially well, so we're not doing a good job of encouraging these readers to stick around.
But the fact that Digg is there allows us to promote older articles (Seth's 'backlist'). That article certainly provides some food for thought. But there's that old media saying: "Today's newspaper is tomorrow's chip paper." Old 'news' stories aren't going to be worth anything on a site like Digg, or any other site for that matter. You need a specific kind of article to do well on sites like Digg (the ones that aren't time-sensitive, and deliver some kind of value or entertainment).
Besides, this sort of behaviour (the 'in-and-out') occurs frequently on news aggregators and social media sites.
On aggregators, readers go back and forth, reading a few versions of one story across different sources (for a different view, or new facts, or reader comments... think sports, politics, gossip)
On social media sites users often return to leave comments or rate articles (and I don't mind where that conversation happens, so long as it happens).
And with that backlist in mind maybe the investment in content should be less news and more features...
"Mean" is not "median", and "100k+" is not "100k". Taking the second distinction first, the study includes the whole Technorati 100 -- each of which have way more than than the threshold number of visitors. They also probably bring in significantly more than $75k/year, and make up for a lot of the smaller blogs which bring in a fraction of that.
I'd love to see the median data and a distribution graph. That'd be valuable.
It's saying that the mean revenue for those with 100,000 OR MORE impressions/month is $75k/year....NOT that the average revenue is $75k for a blog that has 100,000 impressions/month. Two very different stats.
I have NO CLUE, but from a math perspective I'd imagine it breaks down something like this:
100k/month ~ $25k/year (lots of people)
250k/month ~ $55k/year (quite a few)
500k/monty ~ $120k/year (not so many)
1000k/month ~ $240k/year (under 50)
2000k/month ~ $480k/year (5-10)
Now, when you average just this group of "100k+/month", you'd probably get something like $75k/year....but there is still a significant group of people at the end of that particular long tail who are making $25k and "mystified" by the statistic that technorati chose to use to promote its industry.
The bench players in the NBA should not be mystified that they are being paid significantly lower than the mean salary for NBA players, but significantly more than basketball players in general.
I'm also willing to bet that a creative blogger with 100k page views could make the extra 35k by building an e-mail list and intelligently leveraging affiliate sales.
Great point about email list...cpm seems doomed to me.
I took part in the survey. Wonder if there was some over estimation on the part of bloggers?
Would love to meet one who is making that kind of cash from affiliate deals and ads alone.
3,000 small blogs would produce the revenue Fred is doing on this blog.
See http://juicetorrent.com (disclosure - I am with the company that does JuiceTorrent). We just started the service.
Am I not right in thinking that the more sophisticated web user (i.e. your readers) are less likely to click on ad words or any other links - also, as you have pointed out, many will be using feedreaders which do not generate page impressions - and presumably you don't give a stuff about SEO crap.
Finally your blog is nicely designed so you don't have to click madly to navigate (i.e. more after the ****ing jump) - which also keeps down impressions.
Basically it is a nice blog which you happen to monetise... please keep it that way.
Oh - how about increasing your charitable giving by investing the $30k pa in a brilliant start up (crowd sourced by your readers, natch) and then donating the profits after the exit at 10x initial investment??
Believing in CPM as a great model isn't far from believing in mass spam mailing as a great model; they're both based on the same principle: club as many people as possible over the head with your message, and hope you can get 1% to respond. The advertisers who recognize that the future isn't about brute force -- it's about targeting and engaging the consumers who *want* to be engaged -- those are the advertisers who will survive and thrive. The rest can go live in our spam boxes.
By the way, I know there are loyalty issues, but for the benefit of your favorite charities, I've heard Pheedo is paying 3-4x Feedburner these days.
Do you factor in the deal flow you receive based on positioning yourself as a very social media savy VC via your blog?
I think once you do that in your case you will exponentially exceed that $75k a month number.
Lastly if you were to review your blog with a few experts who do blog with the express purpose of making money like Darren Rowse, John Chow, Wendy Piersall, Shoemoney, etc I would be willing to wager you could easily increase the income you earn via your blog with their recommendations.
Fortunately (or unfortunately, depending on your point of view) I am not yet convinced we don't have much better prospects via sponsorships.
I'm glad though that *you* are not in this for the advertising revenue :-)
The amount of revenue per visitor gets better the more niche a site is, from what evidence I regularly see. Obviously the more niche a site is, the less visitors interested about the site. It's gaining the right balance.
http://broadstuff.com/archives/1259-Funding-the...
I have about 1500 uniques a month (which is .015% of 100k). Using Fred's numbers ($30k) I should be able to make $450/yr and using the $75k number I should be able to make $1125, assuming this scales downward proportionally.
Do you Fred, or other readers think that a growing blog at this level would stunt its growth by adding a banner ad? If you the readers think that it wouldn't I may change my philosophy here and "ad" one :)
Thanks in advance for suggestions and help.
http://ryanagraves.com
Here’s some additional context: among active bloggers that we surveyed, the average income was $75,000 for those who had 100,000 or more unique visitors per month. Some of the bloggers in this group told us that they have more than one million unique visitors each month. Note that the median annual income for this group is significantly lower -- $22,000. These numbers represent self-reported income. We’ll have much more detailed data on revenue in the Day 4 segment: Blogging for Profit.
Supporting a diversity of revenue streams that support the market as it is today (CPM based display advertising, email newsletter ads and list rental) combined with higher-margin revenue streams that serve a more unique value prop (post roll video, organic sponsorships, lead gen, microsites) is the only way to operate profitably in this climate. This way, your community/audience is served first and your editorial remains strong, but the business fundamentals are taken into consideration. The industry-wide transition in media consumption and sales presents enormous opportunity for brave clients and creative entrepreneurs, alike. But it's not for the faint of heart!
So it's simply a mean versus median issue
$22,000 for 100k is almost exactly proportional to $30k for 150k
I am not doing something wrong!
And this also tells us that a blog UV is worth in the range of $0.20/year
for a blog like mine
If you treat that like an annuity (a bad assumption I think), a blog like
this one would be worth around $2/UV to a buyer
Your icon on the iPhone - when i saved it as a bookmark to my iPhone's home screen - sucks.. you need to make a web clip. it's very simple.
http://www.mynewiphoneworld.com/custom-iphone-i...
Seems the long tail is wagging the dog?
Niche matters, pageviews matter, ad networks matter...
But yes if ad money is your concern, comparing my anecdotal experience to yours, you are clearly doing something wrong. But then so am I.
I agree that $75k per year would start another renaissance of content on the Internet. It's green, rich media, and connects communities.
100k unique users make no sense. Most real communities have less than 50,000 total population. This also applies to most B2B markets. For vertical communities, 100 million UU might be needed to sustain long term viability. 100k is a no-man's land.
Small business advertisers mostly target 50,000; not millions.
The big picture is that we need thousands of communities with 50k UU, 10 pages per month, $50 eCPM net to the publisher. That's $25k per month - enough for salaries, investment in rich media content, and interactive features.
At tEarn, we're beta testing with 50 local newspapers and niche publishers to realize this goal. It's time to stop inflating hits for size sake. It's time for change to segment into real, sustainable communities - tens of thousands of what we call microchannels.
-Dash Chang
http://tEarn.com/
I'm a long-time reader of your blog. Great post. I don't think that "you're doing anything wrong", :-) but I do think you are not doing enough to monetize your blog traffic. Without working a lot harder, you should still be able to generate much more than the $30K you're making now.
I just wrote a detailed post (see http://www.geekmba360.com/?p=196#more-196) that compares your blog to a top-earning blog that is generating $30K+ a month with only 183,633 monthly unique users. I'm curious if you'd be open to try out some of the suggestions. :-)
cheers,
Bill
if you want me to sell it for you, let me know :-)