Determining The Profit Potential Of A Blog

October 2, 2006 – 10:36 am

by Darren

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If you’re targeting niches to blog about, and you’re serious about increasing your blog earnings, then one key you need is to figure out just what the best way is to pick topics. And when I say topics, I really should say topic, because the more focused you are, the greater your chances to success.

One of the easiest ways to determine your blog’s potential is to divide the amount of revenue you receive monthly, by the number of pages you have in the archive.

This way, you can determine the “bang for buck” you get per post. This is the single best determininant of determing blog earning potential, because it calculates an effort/reward formula which tells you which posts get you the most money. I don’t know about you, but I want to spend the most time doing the actual act that will net me the most money. For people running “blog networks” with more than one blog in their care, this is particularly rewarding.

A tale of two blogs. Which one will I devote my time to?

Blog A is about “blue widgets” and has 225 posts which net $46.00 per month. Blog B is about “red widgets” and takes in $147.83 per month, with an archive of 100 posts.

Let’s make a basic valuation:

Blog A - each post is worth $46.00/225 = .20 per post per month. If the current values stay accurate, you’ll make $2.40 per post per year.

Blog B - each post is worth $147.83/100 = $1.48 per post per month.

Blog B earns 7 times the net revenue of Blog A per blog post! That means if you make 100 posts in Blog B, and skip the next 100 posts in Blog A, you actually will earn 700% more income. Personally, I say “do it”. In a scenario where one blog out produces another blog by 500% or more, it’s probably worth abandoning your efforts in the one to go with the “front runner”.

Do you take any formulas like this into account?

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    1. 4 Responses to “Determining The Profit Potential Of A Blog”

    2. I never have looked at things that way - though I’m going to now. I think this weekend I’ll sit down and go over each of my blogs and run them through this little formula - it will give me a better idea of what is and isn’t working.

      By Leroy Brown on Oct 2, 2006

    3. Your calculations make sense. It’s a very simple approach, but it does help.

      I’m using something similar, but on even lower macro level of blogging. I do similar calculations for each blog category (or keywords set) on the best performing blog of mine.

      This way I can easily see what posts and what keywords attract most traffic and/or generate most profit, and then concentrate on them.

      By Gleb Reys on Oct 2, 2006

    4. Thanks for the comments guys.

      Yes, this is a very simple ratio. On refinement that would be necessary right away is to add the monthly totals for a year, to see how much everything deviates.

      But I think the main point I wanted to illustrate is, if one blog nets a ton more PER POST, then you almost have to hit that one with more frequency. At least if earning more revenue is the goal.

      By Darren on Oct 2, 2006

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