Business Model For Small Blog Networks

February 8, 2007 – 12:32 pm

by Darren

The “blog network” business model is like everything else these days: tougher than ever to implement. Many people have entered the fray, and that has a few consequences: more competition and fewer eyeballs per blog. With the way Google seems to be shifting to alliances with bigger publishers, the small guy might end up getting pressured, as he usually does.

Tenable business model for a small blog network

1) Costs are in the form of hosting and content creation
2) Revenue can be generated by 1) text link sales 2) advertising revenue

The concept is as simple as any business model out there. A small blog network creates content. This content attracts readers, and these readers click on ads and visit sponsor websites.

The main pressures of achieving success with this format are:

1) Attracting a sufficient audience to generate revenue
2) Being able to manage multiple blogs and associated expense with uneven revenue growth
3) The business model is highly reliant on transient traffic
4) It’s nearly impossible to build simultaneous blog brands that will mean anything to anyone.

Of course there are many more challenges, but these are some of the main ones. As you enter into more categories, you end up risking complete dilution of your efforts. At some point, all small blog networks are limited by their very smallness. All this said, profit is still achievable with a small blog network if you work hard at it and maximize the traffic on your network.

What other challenges can you think of concerning running a small blog network?

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