Blog Republic

Calculate Daily Blog Earnings: Use A Moving Average

by Darren

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I touched on some new ideas I’m having concerning monetization and valuation of blogs. The emphasis I’m placing is on individual bloggers. First, I suggested a way to determine the profitability of a blog, as well as keeping a record of the time you spend blogging as a core practice in determining your pay levels. Now I’d like to refine that a bit further by introducing a Moving Average.

Let’s consult WikiPedia for the definition of a moving average.

A simple moving average (SMA) is the unweighted mean of the previous n data points. For example, a 10-day simple moving average of closing price is the mean of the previous 10 days’ closing prices. If those prices are p1 to pn then the formula is

Quite eggheaded, really. We can use this formula to look at 90 Day Moving Averages of our income, which should give us a very good indication of where we stand.

A moving average is one way to get rid of “fluctuations” in your earnings and it will give you a realistic snapshot of what you make from your blogging.

For the Blog Earnings 90 Day Moving Average, merely add all earnings from the last complete 90 day period, and then divide by 90. Let’s take 3 months earnings of: $3218, $3019, and $3078. Add them together and then divide by 90. $9,315/90 = $103.50 90 DMA. You can roughly predict, based on your 90 Day DMA that you will earn that much, or more, in the next 90 day period.

This is especially important if you get paid on a number of different programs. Total all payments together and calculate your 90 DMA. A simple calculation like this will let you know pretty much what to expect from your blogging, and it should hint at ways to improve your earnings.

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