Blogging for sport is one thing, doing so for financial return alludes most bloggers even thought their intent is otherwise. Why is this so? Several factors must be taken into consideration when determining a bloggerâ€™s ROI:
- Equipment (computer, software, Internet connection, server, desk, etc.)
- Labor cost (writer, marketing staff, programmer, site designer, etc.)
- Management, and
- Marketing costs
The equipment isnâ€™t a big deal. Every business owner, and most students and homeowners for that matter, have a computer. Blog software can be obtained at no cost (WordPress, etc.) and finding an inexpensive hosting company is easy. The real costs are labor, management, and marketing.
All bloggers know â€œContent is Kingâ€ and we also know quality content takes time to develop. In an endless sea of information, providing your readers with compelling content is time consuming. Blogging everyday might require:
- 2-3 hours of a writerâ€™s time (say a minimum of 12 hours/week)
- Add a few hours of tech time (add new features, update products, links, track results, etc.
Add a few more hours to manage and market your blog.
Total time quickly approaches 20 hours per week. At $25 per hour (low estimate), thatâ€™s about $500 per week or $26,000 per year just for labor.
A conservative estimate for a quality blog might range anywhere from $20-$50k per year. If youâ€™re a small business owner and your blog doesnâ€™t generate a few thousand a month in return itâ€™s probably not worth your time. However, there is value in branding your company if your readers are qualified prospects. Targeting your content to reach your intended audience is the key to blogging success.
The link above is another analysis of blogging ROI that briefly discusses the percentage of conversions needed to turn a profit.