A while back Trevor Hampel left a comment on my 5 Reasons Why I Blog post that has stuck with me.
Trevor shared with us 5 reasons he blogs. But he added a footnote to his last reason. Here’s what he said:
I need the money. (What money? Show me the money)
I’ve been thinking about that for a while and I’ve come to the conclusion that earning money blogging is both much simpler and much harder than most of us think.
Let me explain.
Income Categories
The way I see it there are two sets of categories that blogging related income will probably fall into. Our income can either be Direct or Indirect. And it can be either Active or Passive.
Direct Income – This is money that is generated directly by the blog or the act of blogging itself. It might be income from an affiliate program such as Google’s AdSense, or maybe Amazon.com. It might come from getting paid to write through something like PayPerPost or Bloggers For Hire. Maybe you have direct sponsorship on your blog, or are running a different ad program such as TextLink Ads. Or it could even result from sales of our own products that happen either right on your blog or because your blog referred them to the product.
Indirect Income – This is money that comes to you as a result of your blogging, not directly from the blog itself. It is harder to quantify and describe. Part of the reason is that the opportunities are truly endless and limited only by the imagination. Maybe your blogging positions you as an expert in a particular niche and people start turning to you as an authoritative source of information on your subject. This can turn into paid writing assignments, speaking engagements, consulting opportunities, or maybe even a book deal. Or maybe you end up rubbing elbows and building relationships with folks (it’s called networking) who connect you with an opportunity that you never would have been exposed to but for your blogging.
Active Income – This is money that happens once as a result of doing something. For example, with PayPerPost, you write a post, you get paid for one post. Or with Bloggers For Hire you agree to write for a specific blog and they pay you monthly for your efforts. Active income is easy to get your mind around because there is an obvious cause and effect interaction happening.
Passive Income – This is money that seems to happen on its own. You do the action once and you keep getting paid over and over. The most common example is AdSenense. You put the code in your blog template once and you keep getting paid every time someone clicks on an add. The money just rolls in (doesn’t it?) But you might write an e-book that you offer for sale on your site. You do the work of writing it once and get paid over each time someone buys your book.
How The Income Categories Relate
Now I am personally of the opinion that Passive income is generally more desirable than Active income and that Indirect income is generally more desirable than Direct income. I see the them as having more total income potential even though they don’t pay as much up front.
I kind of see it like this chart here.
All of the different potential income sources fall somewhere on that grid. And I know there are some direct or active sources that produce a great deal of income. I happen to think they are the exception more than the rule, though I may be wrong on that.
My Approach
All that said, my approach has been to not get too bothered by some of the different income sources that folks seem to be clamoring to.
I don’t have AdSense ads here on SuccessCREEations. I do have them over at my personal blog and I haven’t seen much of a return over there. In fact it’s been so long since I checked my account that I forgot my password this morning. I know part of that is my fault. I haven’t posted over there in about 20 forevers. But regardless, it isn’t a system that has been productive for me.
I have run sponsored ads here at SuccessCREEations from time to time. But not very often, and only for sponsors that I’m particularly well aligned with who really make it worth my while.
Instead I’ve chosen to pursue the indirect income route. I do consulting that is a direct result of my blogging here at SuccessCREEations. And that consulting provides a nice income stream.
I am also starting to pick up a few paid writing gigs that never would have happened if I wasn’t blogging already.
Basically my approach has been to get several smaller income streams up and running rather than trying to find that “one thing” that would provide me with enough to quit my day job.
How I Got Here
I’m not going to sit here and try to tell you I’m making millions at this blogging thing. (At least not yet!)
I still have a rather demanding full time job that is completely unrelated to my blogging so I’m not bringing in a full time income from my various streams, yet.
However I am headed in the right direction and I have a plan to get to a full time income doing work I love rather than work I was trained to do. (Yes. I have a plan. Don’t act so shocked.)
My approach may drive some of you nuts. But here’s how I’d sum it up.
I keep doing what I enjoy doing, i.e. writing. I do it without getting compensated because I really like doing it. All the while I engage the bloggosphere, work at building relationships with other people out there and keep my eyes open for opportunities that come my way.
I haven’t tried to force any particular way to work for me. I just keep doing what I love knowing I want to earn a bunch of money at this eventually. And let the income portion of it work itself out.
My relationship with Successful-Blog started just that way. I linked to one of Liz’s posts. She noticed and called me an SOB. I was shocked (didn’t know what an SOB was) and started hanging out over there and commenting when I thought of something interesting to say.
That led to emails and more dialog. My day job sent me to Chicago (where Liz lives) and we got a chance to meet in person. She asked me if I’d consider volunteering a post or two a week over there. Um, Yeah!
Remember the part where I really enjoy writing anyway?
Well Liz is just one of those folks that I happen to get along with really well. I’m sure she’s got tons of folks like that around her, but I’m cut from slightly coarser cloth. So when the idea of SOBCon started kicking around I knew I wanted to be part of it.
And as a result of that I’m meeting tons of wonderful people and there’s no telling what opportunities are heading my way now.
My Point
What’s my point?
My point is that you were uniquely wired with your particular passions, interests, skills, and abilities. Don’t for a minute think that you have to earn your income using the method that some expert is selling for a few hundred dollars. Guess what. That expert is probably earning far more telling people how to earn money then he ever did actually using the system he is selling.
And don’t get deceived and think that all the money has already been made. We haven’t even scratched the surface yet.
Follow your own passions. Keep your eyes open for opportunities. And believe the income will come to you. You will be amazed how easy it seems once you stop trying to force it using the way someone else is wired.
“Hi” Chris,
They say luck is the intersection of preparation and opportunity. I think your strategy for ‘lucking into’ blogging gold is a solid one.
Mike
(Hey! 70′s TV easter egg in there!)
Heya Mike! I’m with you. Though there are probably some folks who will think it makes no sense.
(Don’t have a clue about the egg reference…?)
Solid Gold!
With a plan like that, and the execution you’ve been giving it, one day you’re going to be an overnight success.
*Groan* @ Mike. How could I have forgotten all that big hair?
Rick – Yep. I suspect that all that continued effort over the long haul will create instant success eventually! Just call me Bamboo
Chris, what a great summary for those who have been reading all the recent blather about “making millions by blogging” posts flying around lately! The fact is, practice and patience are the best rewards for any endeavor, and will pay off more in the long run, both with monetary (if that’s what you want) and intangibles that are actually worth more.
Thanks for the voice of sanity amid the Solid Gold Dancers doing the frug while cavorting though forests of endangered bamboo!
Great post Chris – excellent advice to anyone trying to leverage this medium. I have no doubt you will succeed given the way you are approaching this. Well done!
Robert, There is a lot of junk out there. If folks get caught in the trap that says there are only a few ways to make money out there (there are gillians of ways) or that says expect to see massive amounts of cashola rolling in within your first 30 days (yeah, right) you could very easily end up depressed about the whole deal.
Starbucker, my point is that the money is there to be earned for all those willing to work for it. I think the secret to this whole thing is that there is no secret. Anyone can achieve in this marketplace. Just use the methods that fit you best.
Chris, I enjoyed the topic and the insight, I would like to earn some money from the blog world and i am convinced it will happen, i enjoy writing, if what I do is considered that,I look forward to meeting you and Liz when, the conference comes to town and yes i will grab the mike on open night.
I couldn’t help by laugh when I read the SOB part. Liz has left snarky comments on my blog as well.
A well written post Chris and you have an open invitation to write on my blog as well.
Just a word on passive income. It’s a numbers game so bloggers should focus on increasing traffic and positioning ads, and the income should increase accordingly.
And lastly, PATIENCE is the final word.
Hey Blog Bloke – can I have the LAST word?
OK – I agree – patience is really needed in this business – like any endeavour it takes time and effort to be “an overnight success.”
Chris – thanks for the insights you outline in this article. I knew all that so there is nothing new in what you have said but like so many slow learners, I need frequent reminders. (I know how learning works – I was an elementary school teacher for 35 years).
The passive income is what is so attractive to me. It comes in regardless of how you feel or even whether or not you are awake. My Adsense income is modest but steadily climbing – it’s going in the right direction on the graph.
My son (who maintains my blogs) and I are now looking at direct income via affiliate programs . We also are planning direct sales of some of my writing. There is also the potential for a paid blogging position sometime soon.
Thanks for the link – and I’m pleased to think that my flippant comment gave you inspiration for such a thorough article.
Serendipity brought me to your blog. Actually, I was searching for something else in the Google blogsearch when my eyes caught the title of your post. Making money from blogs has intrigued me since I started blogging last December. Don’t get me wrong–I blogged because I wanted an outlet for my writing urge. Along the way, however, every blogger will stumble upon other blogs talking about monetization, so that’s why I signed up out of curiosity with AdSense, then later on with Amazon and Shareasale. This early, I can already hazard the conclusion that these ad things won’t really amount to much (I can only speak for my blog, I guess). I’m embarassed to even give you a hint on how much my AdSense account has earned since December. This is why I give my two thumbs up to your post. I can relate to what you are saying. Great point you made there.
Jim, I missed you last time I was up Chicago way. I won’t let that happen in May!
Hey Bloke! Ditto on the patience thing. That has been my attitude all along. “Let’s see where this goes… No Way!”
It did help that my wife was prodding me about getting a bit of a return on the hours I spend on my “hobby”. But then it’s not every day that a guy gets to turn his hobby into various income streams!
(And thanks for the invite. I’ll shoot you an email in the AM.)
Hi Sarzi! Welcome to S-C. Glad you stopped by. I doubt your AdSense numbers would be embarrassing next to mine. I’m not sure if their TOS allow talking about numbers or not but let’s just say that I’m expecting my first check from them sometime late 2011.
Like Bloke said, it actually takes some work to get that passive income coming in. And that’s something I haven’t focused on.
The beauty is that I don’t have to focus there. There is income to be made by just being me. My encouragement is to be yourself. Work in the way that you are wired. And keep your eyes open for opportunities.
(Oh, and like Bloke said, Patience is a huge help too!)
The TOS does not allow us to talk about numbers. Thanks for the encouragement and the thought that I’m not alone (nursing my measly numbers).
I thought I remembered reading something along those lines. It was a while ago.
There are lots of resources out there if you want help getting better AdSense returns on your site. Click on Blog Bloke’s name above and search his site for AdSense Optimization and you’ll see three pages of articles that will help.
Another great resource is problogger.net. Search AdSense Optimization there and you’ll find enough reading to keep you busy for days.
Trevor, Sorry for the delay in getting your comment to show. It got jammed up in my spam filter by mistake.
I hope you don’t think the article was “aimed” at you. You just happened to be the one who stimulated my sometimes fuzzy brain into action. I like to give credit where credit is due.
I’m glad you have a variety of things cooking. It’s great for you. And it reinforces the whole point of this post in the first place. Thanks for letting us know.
And keep being you!
Want you to know, I am watching. Like you care! Ha ha! BUT….I have a plan, and I like what you are doing, and maybe it will fit into my B I G plan. If it does, then your efforts will be more than rewarded. I would have never known, if you didn’t do this with little return. When will people realize, this is soooooo cheap to start, and sooooo rewarding. I visualize this HOBO going into his local library, signing on to his blog, and writing fantastic copy, and building up millions in Adsense, then when he has enough built up, start the business full time!
Keep up the great work! I am watching!
Someone who watches, Um…
[Shuffles his feet uncomfortably before whispering to his wife] Ah, I don’t have any broccoli in my teeth, do I? No toilet paper on my shoe?
Hey you….comb your hair!!! I don’t like your chart above…Blogging is more like a stock investment.
You create content, you make 25 cents off that content in one year. At the end of the year you take the 25 cents and put it in the bank. The next day you create more content. after a year you have another 25 cents. BUT! You also made 25 cents off yesterdays content. Twenty years from now, sit back and watch it roll in. Thats retirement income!!!!! You need a chart that shows what you pay for a stock, then what is gained in dividends and stock appreciation! Last chart I saw like that was on NAIC web site. No, I have nothing to do with NAIC. But I do believe in the system!
Sounds like a good plan. I think one critical factor is a long term expectation instead of a short term one.
And your plan makes some assumptions such as the ad programs are not going to change over the next 20 years. Probably a reasonable assumption, but there always is some measure of risk. (Put all that effort into building something then someone you have no control over changes their end in a way that eliminates all the income you were working towards.)
The good news is most ad programs are relatively easy to change out with a little minor coding.
So, if affiliate ad income is your goal you still win by taking Bloke’s advice.
Focus on generating traffic and the income will follow. And one of the biggest factors in traffic building is consistently producing high quality content regularly over the long haul.
This seems pratical. And you have the talent. I can see you as a SOB.
Hey Dio, Thanks for stopping by. Don’t loose sight of my point, though, which is that you have the talent too.
Your’s will just likely show itself in a different way than mine does. The options and the opportunities are limitless!
Hey Chris,
Just wanted to say that I stumbled upon this entry and after reading it, know without a doubt that you will be wealthy in short order.
Clearly, you know your gift and raison d’être and unabashedly share it with the world. In essence, this is what you encourage others to do: Don’t drive yourself crazy worrying about money. Instead, do what you love and focus on giving; the money will come.
I am delighted to have found your blog and look forward to engaging with you and your content in the future.
Warmly,
Tshombe
______________
“Do you know you have the power to inspire?”
http://theinspirationnation.com
Tshombe, That is a wonderfully kind thing to say. I’m of the opinion that there is even more to being wealthy than simply having a bunch of money.
The way I heard a wise lady say it, “Money’s not everything. But it is right up there with oxygen.”
Becoming wealthy in every sense of the word is one of my goals so I’ll take your compliment as evidence I’m heading in the right direction.
Thanks so much for stopping by!
Hey Chris,
Sounds like you’re not just heading in the right direction; you’re already there!
The spiritual always precedes the physical.
Thank you for the great life lessons!
______________
“Do you know you have the power to inspire?â€
http://theinspirationnation.com
Thanks Tshombe. As long as life keeps making me think I’ll keep sharing what happens.
…you do…have broccoli in your teeth, Chris.
Maybe you should do an entry on what baby step a blogger should make if they’re interested in crossing over from strictly blogging to entering the monetized systems.
BTW, email me when you’re coming to town. lol
John, That sounds like a good idea for a post!
I’ll shoot you an email on my heading to Jax next.
Chris…I think the comment thread here about your broccoli problem…should stay…here.
sorry, i just posted but I don’t see my comment up. Is this moderated or something or should I repost my comment. Usually there is something that says if ur comment is waiting moderation or not.
thx david
David, I don’t normally moderate comments here though sometimes folks end up in my spam filter for whatever reason. I went poking through it and don’t see any wayward comments from you so I’m not sure what happened to your previous comment. Sorry.
I wish I could make even $600 a month writing these days. I’m trying hard and with any luck my blogging will pay off soon.
Speaking of which, if anyone needs a writer, I’m available for $600/month.
Great post Chris – excellent advice to anyone trying to leverage this medium. I have no doubt you will succeed given the way you are approaching this. Well done!