The Blogging Business - Looking On The Bright Side

July 11, 2007 – 12:26 pm

by Darren

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Lately I’ve caught a few posts that seemed to be down about the future of blogging, and I’m not sure I agree. I’ve been working on blogs for over a year, and although I haven’t generated a huge income, but I will tell you: I have been able to generate a HUMONGOUS return on investment.

I mean, let’s look at some facts about blogging for me so far:

  • Domains are $8.88 with NameCheap
  • Templates and plugins are free - if you need them
  • Hosting is very cheap
  • Time is the main ingredient with which you invest
  • You can earn money from advertising sales quite easily with a great number of different programs

So, looking at things from this basis: I’ve developed a $15,000 per year revenue stream (and rising) on a total of investment under $100 on domains. The rest of my websites already paid for the hosting on my dedicated network so that is really it for costs.

Other than time (which hasn’t been that much lately), I’m out very little and stand to see my returns keep rising. If I needed to sell, I’d probably be able to liquidate the blogs for $20,000 or more with little trouble. So, in essence, where the hell else in this world of ours can you invest $100 and earn $15,000 per year with a sellout potential of between $20,000-$40,000?

If you can answer me honestly with an alternative, then you’ve found a better business than blogging.

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    1. 5 Responses to “The Blogging Business - Looking On The Bright Side”

    2. Gotta agree with you there, when people ask my net income, they are surprised I didn’t need any start up money to get going, and that my income is almost the same as my net income.

      Very little going out is great!

      By Ma2T on Jul 17, 2007

    3. Darren .. when you say “The rest of my websites already paid for the hosting on my dedicated network so that is really it for costs” .. do you mind elaborating? or, is that too personal? I’m curious to what the hosting service you use for your existing network; how much growth it will allow you before you need to upgrade again; and roughly your costs.

      In June I closed out my mega account and reseller account and went to one large hosting package (VPS). I think I need to upgrade already to a dedicated server, but I feel hesitant in committing triple the resources. Do you manage your system yourself?

      As for domains .. $8.88 is cheap. Mine are $9.00 USD plus the ICAN fee .. but, for an investment .. most of my domains come due in July-September and, after renewing about 50 domains for one year in the last few months .. it’s a cost that’s not hard to forget to add to the web hosting costs - it adds up!

      But you are right - despite the hosting and domain registration, it’s definitely true that TIME is the biggest cost (or cost of not being able to do other things with that time) - at least for me as well.

      By HART (1-800-HART) on Jul 17, 2007

    4. Interesting Hart, I am also on VPS costing me about $65 a month, I am tempted to get full dedicated. After installing a PHP cache and some tweaks, it seems to be coping fine right now (fingers crossed).

      A dedicated would cost me roughly 2x what my VPS costs me.

      Currently my hosting per month is less than a days earnings. I like it that way…

      By Ma2T on Jul 18, 2007

    5. Hart, I already had a network with a dedicated connection when I sold out my ISP business. All of the servers are paid off and the bandwith is around $600 per month. One website I have actually pays the bandwith and office rent that left my business in tact when I went into this.

      That’s why I look at additional traffic and websites as being pure profit. All the expenses stay fixed for me (although they’re much higher than the average blogger I would imagine).

      By Darren on Jul 18, 2007

    6. I guess that comes in handy, having your own dedicated connection. I’m too chicken to self manage my own network connection at home. The option for a dedicated server will be costing me about $200/mo and it’s starting to sound as my best alternative. Downtime and being offline due to growth sucks, and I have no time to learn new tricks and software. But, as you know - it’s all relative. It takes money to make money. Once it’s in my head that it’s more of a variable cost than a fixed cost .. I have no problem - although, I would prefer it to be a fixed cost and increase the spread. I’m sick of huge unexpected overage costs.

      By HART (1-800-HART) on Jul 19, 2007

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