Blogger Salaries And Return On Investment

2008 February 27

links-salary1 I was reading Felix Salmon’s article about Gawker Media and how Nick Denton is continuing the blog lord scheme of paying his bloggers based on performance.  It appears that Denton only cares about the almighty page view.  I know what Denton faces when he looks for results.  I too have that same problem as clients want to see their return on investment.  Denton sees the check the blogger gets for a salary and then matches that against the number of page views that blogger has generated.  The salary is the investment for the page view. The page view is what the advertiser is investing in as they pay Denton.

I face the same problems each month as I send out my invoices.  The client is paying a monthly contract for the blogger.  They look to me to drive traffic, raise readership of the blog and ultimately that has to turn into sales or customers.  It is not unlike the problem Denton faces.  His clients are advertisers and the return on investment is page views.  This is a very basic understanding of professional bloggers and I don’t discount the other benefits of generating quality content for companies.  This is a basic difficulty I face when dealing with the clients and their idea of our service.  I must continue to educate companies as to why  a blogger provides more than words on a page.

Bloggers are doing their jobs by providing quality content and other outreach to gather readers.  Not all blogs are easy to create large page views and create large communities of readers.  A blog that has thousands of readers a day because they talk about celebrity gossip and the latest crotch shot of Britney Spears, is not as difficult to get readers as portable toilet company that is talking about the latest breakthrough in environmentally safe chemicals and toilet paper.  The problem is that portable toilet company expects the world to be as interested in toilet paper as they are in the latest celebrity in rehab and crotch shots.

I always discuss this with companies and how they expect the blog to perform for them and their expectation of their return on investment.  They want to see thousands of people a day lining up to read what the blogger wrote.  They then equate that to some magic way of selling the reader on their service or product.  Readers equate to buyers in their mind.  This is not always the case but that is the expectation.  They figure the blogger salary into their Cost Per Acquisition (CPA).  In order to justify paying a blogger or hiring a blogger, they use this formula.  What they don’t understand is that the blogger is no different than any other employee in their arsenal.  They have to have employees that perform certain tasks.  They have not bought into the idea that a blogger is necessary.  Until companies become comfortable with that doctrine, I continue to try to justify the expense every month I send an invoice.  Blogger salaries are part of a marketing budget and not part of a budget for employee salaries.  Until that crosses over bloggers are always going to be judged by the “what have you done for me lately” idea.  They need to understand that 50 readers a day that are sold 50% of the time is better than 5,000 readers a day that purchase only 1% of the time.

[photo via UC Merced]

12 Comments leave one →
2008 February 27

Jim-

You’re points are right on, and very timely considering some of my own recent business dealings. Business owners need to understand that well qualified traffic is far more important for generating sales than thousands of random page views. They also need to understand that blogging, like most marketing strategies is a process. In most cases, a couple of blog posts are not going to sky rocket them directly to the top of Google and bring in thousands of new sales.

-Kristie

2008 February 27

Kristie, I have no idea how many times I have explained at the end of the first month to a customer why after 30 days we have only achieved page 2 of Google and raised their traffic 50% to a question of why am I not rich? They think a blog is a magic wand and when you waive 10 blog posts around the money should be rolling in.

2008 March 4

Reply to Blog Quote:

“Bloggers are doing their jobs by providing quality content and other outreach to gather readers. Not all blogs are easy to create large page views and create large communities of readers. A blog that has thousands of readers a day because they talk about celebrity gossip and the latest crotch shot of Britney Spears, is not as difficult to get readers as portable toilet company that is talking about the latest breakthrough in environmentally safe chemicals and toilet paper. The problem is that portable toilet company expects the world to be as interested in toilet paper as they are in the latest celebrity in rehab and crotch shots.”

I found this comment very interesting and I can see your point. I myself am not really into celebrity gossip that much so I have started creating sites/blog entries such as the following:

Poll: Should the Press Leave Brit Alone?

http://concernforcelebs.blogspot.com/2008/01/poll-do-you-think-press-should-leave.html

Stories that Make Me Not Want to Watch the News

http://badnewstories.blogspot.com/

These blogs are very new. But If you would, I wouldn’t mind some feedback on these because I am considering expanding these for greater income potential.

2008 March 6

Hello Jim.

I totally agree with the view that not every type of blog content is the same; blog content dealing with celebrities and glamour naturally attracts more traffic than blog content promoting educational stuff. There needs to be a method, some kind of mathematical model that doesn’t value performance on the number of visitors or the number of page views but on the overall return on investment. As you mentioned in your post sometimes 50 visitors can generate more business than 5000 visitors.

2008 March 9

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2008 March 28

We think bloggers are great people. We hire many to blog about our Catalog Printing services. http://www.usaprintingonline.com/catalogs.asp

2008 June 14

>>>They need to understand that 50 readers a day that are sold 50% of the time is better than 5,000 readers a day that purchase only 1% of the time.

50% of 50 is 25. 1% of 5000 is 50? I think you have your number mixed up?

I would even think that 5000 that purchase 1% of the time would be better then 100 that purchase 50% of the time as you have more room to raise your conversion rate.

2008 November 7

My blog was initially created for personal reasons, but over time, I realized that it was a pretty reasonable income source. And recently I have been contacted by various companies and websites to write about their products or services. It seems they really have no idea as to how a relationship like this could work though, but I appreciate your article as it will be a good place for me to direct these possible clients and for all parties to gain knowledge on how this could work. I don’t want lofty expectations to lead to problems.

Thanks.

Nigel

2009 May 7

I definitely agree with your post. I started blogging on a more professional level last November last year when I started my wordpress blog with a customized theme done by a web developer which I hired.

During the first few months, I’ve been concentrating on increasing my readership base. Not too long before advertisers started contacting me. I don’t have an influx of advertisers though but I wish I could have so as to add additional income from adsense.

Meanwhile, I will continue to write quality articles for my readers on the niche that I chose: entrepreneurship, personal finance, investments, finance and self-motivation.

2009 September 4

I have just recently started a financial website where I dissect the T. Rowe Price family of funds and have found that developing content is just 10% of the battle. There’s almost a predefined format that you need to adhere to to get any traffic whatsoever. Look at this website alone. You almost need the tag/keyword box, the social media diggit type links, a highly defined archive and highly defined individual articles on one topic per link format. Then you also need to shamelessly plug your website on forums… ahem, http://confdence.co.cc and its all in the name of appealing to the almighty google bot. I didn’t get into blogging and drafting of my site to appeal to algs, but to individuals let astray by the failings I’ve seen first hand in the investment industry. The important parallel that I see to this article and my experience is that it doesn’t matter if your product is actually good or not, it only matters if you’re good at marketing it. Hence the simpletons in marketing only care about the most basic metrics they can wrap there heads around.

2010 February 8

Qualified, motivated, inspired traffic is what counts to businesses. As a business owner, it is not the number of hits a page recieves, though being visible and easily found is the first step in the online sales process. What counts is the emotional state of the reader when he comes to the companies site. Has he been inspired to act. Has trust been built, is the resource that he came searching for avilable, have the questions been answered and needs addressed.

I am currently in the process of a site redesign and have recently added a blog as a part of that. While I need to be able to account for the money invested in improved functionality and social media outreach in some fashion, the link is obviously elastic for it takes time to build relationships in the online world as it does in the real world. It is relationships that are at the core of social media in my view and these are based on trust, something that is not built over night.

While not as difficult a task as selling toilet paper, my business (spray foam insulation) is not as glamorous as some. The expectations of business owners may not be as unreasonable as some commentors here seem to fear.

As a newcommer to the world of blog, I’d love to hear about what metrics are available to aid businesses in justifying there investment in social media and blogs specifically. Perhaps this would be fodder for another post.

2010 March 30

We are interested in putting a blog on our webiste and hiring a professional blog writer, we are just concerned as we are in the service industry, cleaning and building, and wondered whether or not it would really add value? we understand it helps with seo but are unsure whether it is a good tool for us or not, can anyone advise?

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