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Is There Money To Be Made From Affiliate Programs?

This guest post was submitted by James Martell. Given the current state of “push button” income schemes…I thought it was highly relevant to post here.

Sadly the online “opportunity” training arena has become populated by hucksters and professional liars who’ll resort to ever trick in the book to market your a** off until they’ve drained you of not only your bank account (or credit cards) but your self esteem too.

I’ve been a full time “affiliate marketer” since a buddy showed me how back in 1999. And I’ve been teaching what I know since 2001. And I didn’t start teaching until my affiliate income was up to $10,000 a month.

I’ve witnessed hundred’s of success stories since then. So yes, there is most definitely “money” to be made, both with affiliate programs and with training.

Income Claims and Sleazy Tactics Have Muddied the Waters

Regrettably, consumers are a lot more wary these days; and with good reason. I, like you, am appalled at the ridiculous “overnight riches” (with little effort) claims I regularly receive in my inbox.

And I have come to loathe those confusing pop-ups that won’t let you get off their site unless you answer their sneaky trick question: press Cancel or Okay. Heck, the other day I found one that would not go away whether I hit Cancel, OK or hit the red X upper right.

Oh, they think they are so clever – so marketing savvy.

But I’ll say this: they are phony, slimy amateurs because “marketing”, whether online or off, are based on establishing trust. Would you ever do business with someone who came to your office or home and refused to leave when you said no thank you?

Not likely. Yet those tactics are commonplace online these days.

How I Made $200,604 in 36 Hours with This Simple Secret

Headlines like this are ridiculous on any level, but mainly because the big lie behind it is that even if someone did make that money, it is certainly not going to happen for you if you buy their BS “system” for $97 (before midnight because it’s so powerful they’ll be forced to take it off the market so it doesn’t get saturated. Yeah, right.)

Our rich friend above could have gotten access to a mailing list of 2 million. He might have spammed everyone on it and made a bunch. Big deal; I could rob a bank too.

For those who feel no compulsion to play by the rules, yes, they can make wads of cash fast. They can also find the FTC at their door, lose all their assets, be forced out of business and/or go to jail.

Are You Practiced In The Art Of Being Ethical?

I always made it a practice to rarely make income claims on my websites promoting my affiliate marketing training. Not that I did not have the stats to back it up. It was more of a strategic plan to gain the trust of my readers. It was also because I knew very well, as does every coach, mentor or trainer in any field, that most simply do not have what it takes.

I know this has cost me money in lost sales. Sadly, many prefer the “big lie”. They want to be sold by someone selling the dream. But I refused to do that.

You could say I’m practiced at it.

I’d prefer teaching students how to come up with a topic for their website, such as rocking chairs or keyboards, or any number of solid consumer products that are sure to stand the test of time and generate ongoing, steady revenue for site owners.

Maybe not as fast or as easy as some “opportunities”, but nevertheless it’s legal, ethical and bankable.

About the Author:

James Martell lives in White Rock, BC with his wife Arlene and their three children. James is a pioneer in the affiliate marketing industry and was successfully profiting with affiliate websites as early as 1999.

What If Man Could Fly?

No…I do not mean jump in a 747…that is a ride. What if a man could really fly?

If you asked anyone 20 years ago if a man could fly, I bet the answer you would receive would a be a definitive no. Are you crazy?! Man can’t fly! Of course, like most things in life, there are people out there that have the drive and the passion to bring what would seem to be unachievable in reality by defying odds and forever changing what we consider normal. Jeb Corliss and his wing suit prove in this video that man can fly and it looks like it has to be the coolest thing on the planet…at this point in time. What does this have to do with you and does it really relate to blogging? Well…watch the video first and then scroll below.

Defying Odds To Achieve Greatness

All of the greatest inventions of our time or companies that rise to new heights are all founded on one basic principle when it all boils down to it.

They take an idea and achieve the unimaginable.

Throughout life…we live in a set of rules. You drive on a specific side of a road, you buy your groceries in a certain way, you have to watch your favorite show on a specific channel with pre-chosen commercials and then you wake up…day in and day out…at the same time to go to the same job and repeat the same tasks. These are the rules we live in as consumers within our communities.

If we want to break into greatness…in life or with our blogs/companies…we have to step outside the barriers to progress and think outside the box. We have to break the conventional rules of thought and bring something new to the table that connects with large audiences. We have to create that wow moment that forever changes the perspective of the people we come in contact with. It is up to us…as the idea people to come up with the alternatives.

Let me ask you another question…if someone asked you 10 years ago if a single person could achieve high 6 figure salaries with nothing but a domain name and an idea…would you have said yes?

It is time for you to fly

Right now, we live in a crazy world where the Internet has opened up more opportunities for decision makers than ever before. We are on the edge of greatness and have achieved it in many ways. Bloggers are now seen as news sources that can alter how audiences consume content. No longer are we 100% dependent upon newspapers and magazines to get the latest news or digest our obsessions. Bloggers just like you are providing this content on a daily basis and making a really good living from it.

The trick…you have to fly. You have to take that leap and come up with your ideas that are going to rock your niche. You have to have the determination and guts to go after that idea and make it a reality for yourself and your readers. Do you think Jeb Corliss started flying overnight? Absolutely not. There are going to be trials…there are going to be roadblocks…there are going to be people that will tell you it can’t be done. But, with hard work, dedication and a unique idea…you can defy the odds and fly, but you have to believe in yourself, your idea and be willing to make that jump.

Are you willing to fly?

Innovate Or Die: Are You Prepared To Make It Big?!

The web is filled with meaningless “me too” bullshit. It’s true. With each day that passes, there is more noise and copycatting passing through your broadband line and onto your screen as more “I want to make money online” hopefuls are copying exactly what they are seeing on other blogs. While they start off with good intentions, they are nothing but trash that clogs the web and eventually fizzles out.

It all starts with one blogger sees another blogger with success and decides to make a run at it the exact same way. This blogger ends up failing and making excuses why they didn’t make it, but…in reality…they didn’t make it big because they lacked original thought. Some even go as far as ripping off designs or scraping content. Once the dollars don’t just start flowing in on autopilot, these same leaches claim it can’t be done and move onto the next project.

Innovate Or Die: Are You Prepared To Make It Big?!

Successful businesses…online or not…make their biggest strides with original thought. Even in heavily saturated markets, new blogs and businesses can rise above the rest by bringing a new and different idea to the table. While it may seem that all of the new ideas have run dry, the world and web is constantly evolving, and this opens the doors for the new guys to capitalize on the changes.

When you go to create a blog or generate new content and products, you need to take a close look at your progress and make sure you are not just copying the success of others. This all stems from one easy to understand theory…

Why is someone going to come to your site if they can get the real thing down the street?

If you are just copying the success of others and not generating your own original thoughts and products, why is anyone going to take you seriously and consume what you have to offer?

They aren’t.

Think about the content that you consume on the web. Are you following a bunch of Darren Rowse or John Chow wannabe’s with the same designs and content, or are you following the real thing? Chances are…you are following the real thing. So why are you going to go against your own intuition and expect your readers to do something completely different than your own natural habits?!

Where I Found My Success Online

I found 99.9% of my success online through original thoughts and ideas.

  • Bike198 found its success by providing original, in-depth product reviews and riding tips in a market that has been saturated with glorified advertisements that publications were tagging as reviews.
  • My blogging reputation online was catapulted skyward when I started teaching others how to get in free products to review with Ramped Reviews…something that no one had created a product around before.

I looked at my target audience and market and brought something different to the table. Not every idea is going to be a home run. I actually have more failures than I do successes, but it is the willingness to step outside of the box and try something new that separates the successful from the could have been’s.

Are you even giving yourself a chance? Or are you just being lazy?!

The easy route is to copy the success of others. You can read through your rss reader and reword everything you read that day, or you can actually take the time to bring your originality into your writing and products to jump ahead of the pack. I would much rather be the guy being copied than the one copying others.

  • What is your competition not doing?
  • What can you improve upon and provide real value?
  • Are there problems your audience face that have not been solved?
  • What can you do to enrich the lives of your readers?
  • How are you different than the rest? And how can you bring that original voice to the screen?

It’s time to innovate or die…which side are you going to be on?

The Internet Lifestyle Is About Freedom, Not Free Time

I think there is a common misconception out there that making money online and the “internet lifestyle” is all about working 2 hours a day and goofing off doing whatever the hell you want the rest of the time. If you want to be successful in the long run and in life…that couldn’t be any farther from the truth. The Internet Lifestyle is more about freedom than free time and since I started making money online…my free time is no different than during “corporate life”.

What Making Money Online Means To You

Stick with me here for a second as this may change how you feel about your blogging.

Making money online is your key to choices.

I was talking to a fellow blogger/freelancer the other day that had his time cut out at his job in half. Now…if you have ever had that happen to you (I have…it sucks), you feel pretty helpless at the moment as you have to go home to your loved ones and explain that things are going to be tight for awhile. Luckily, this blogger/freelancer is able to lighten the load by doing side projects that come about through his work online.

On top of that…this blogger was hit with a decision. Do I look for another part time job, a new full time job or really make a run at my dream? Now, the answer to this question is a needs based question that is different for everyone so I am not going to sit here and pretend that I have the answer, but…the interesting part about this scenario is that this particular blogger now has more choices than ever before. It is no longer “I am at the mercy of others”. Instead, it is “what can I do for myself to make this situation better?”

The Reality About Blogging And Making Money Online

The reality about making money online is the vast majority of bloggers will never hit the big time and make 6 figures a year writing about what they love. I wish everyone did…but like everything in life there is only so much room at the top and there are only so many people that are capable of the discipline it takes to run a 6 or 7 figure business.

But this should not get you discouraged.

By supplementing your household income by doing something you love online, you can open up a whole new world of choices that would have never even been an option before!

  • You will no longer be tied to that job you hate 100%. You can have the choice to search out a better paying, more enjoyable place of employment while you supplement your income with blogging.
  • You can get the toys (for free if you read Ramped Reviews!) that you used to not be able to afford on your regular salary.
  • You can take your wife/girlfriend/kids out to dinner more often.
  • You can go on better vacations.

The list is limitless and it is all possible through your efforts online. There is a lot of focus on “full-time income” through blogging and that full-time income for many bloggers is completely different. I know a lot of bloggers that make a full-time income online and still have jobs. Why do they still have jobs? Well…2 salaries is a pretty cool thing if you can swing it don’t you think? What if they really like their job (yes…there are actually people out there like that)?!

As you look at your blogging, make your goals for the future big. If you want to make a real run at it and become a full-time blogger, I do not want this article to discourage you from that goal. Hit it full swing and go after it. The point I do want to get across is to try not to focus on the thousands of articles online all focusing on the “Internet Lifestyle” and start looking at how your blogging can start to free up choices in your own life. Who knows…by focusing on choices…you just might end up managing a 6 figure business online…

What has your blogging let your choose?

Image by PotironLight

Dropping The Mental Barriers To Actually Make Money Online

Over the past week, I have covered a lot of ground on newsletters and why your blog must have one to be successful online. Even with the overwhelming evidence and personal experiences, there are still bloggers out there that are not willing to take that first step to success with a newsletter on their blogs. Why do they not want to take that leap of faith?! They are not willing to spend the small amount of money a month to make it happen.

If You Are Not Willing To Reinvest…You Will Fail

This is a simple business principle that carries outside of just newsletter subscription services and is at the core of successful business building. If you really want to make a successful run at blogging, you have to stop thinking like an employee and start thinking like a business owner.

If you are not willing to reinvest your earnings or drop some out of the personal bucket into your business, you are going to fail or not see the growth you are seeking.

Owning a successful business, online or brick and mortar, is about managing expenses against revenues and reinvesting profits. Yes…you have bills in the house that you would love to pay, you have that incredible new 3D TV starring you in the face, a new car would be fantastic, but…the harsh reality of business owning is that if those items do not increase your bottom line…they are worthless.

Blogging is not a 100% profit business. This is not an atm where you are just drawing out cash without having to put anything back in. If you are thinking you can get away with a free theme and your articles, you are going to be one of those unsuccessful bloggers that believes the rest of the successful blogging world had a secret you didn’t.

Well..they actually did have a secret. The secret is investing back into your business brings you faster growth over time. By making smart investments (a newsletter subscription service like Aweber), you are insuring long term, positive growth over time.

Make That 20 Bucks Work For You

As you look at your blogging, even if you are just making 20 dollars per month, how can you use that 20 dollars to reinvest into your blog so that next month you are making 80 dollars? Do you want to make another 20 dollars next month or do you want to put that 20 bucks to work for you and increase the number generating a higher profit? Those are the questions that business builders ask while employees are glad they are able to go out to dinner one more night this month with their earnings. See the difference?

When assets like newsletters bring in hundreds of thousands of dollars for bloggers each year, do you think they are really worried about the small expensive per month they have to pay to generate that revenue? Before you jump in with the excuse that they are making that much money to cover it and you are not…remember this…every blogger (yes…even the ones with 100′s of thousands of subscribers) started off with nothing. They started off with a “hello world” post and their mom subscribed to their rss feed with a dream of making something better for themselves.

Their willingness to take that extra step that the competition was not catapulted them into blogging super stardom. By making smart investments back into their efforts, they were able to build upon their small successes to make larger ones. Not all of the investments were smart ones (no one has a 1.00 batting average), but smart decisions over time add up.

Do you want to be successful? Start looking for smart ways to invest your earnings back into your business. I would suggest starting off with a premium theme, some kind of logo and a newsletter service like Aweber right away. Locked and loaded with those three assets, you will already be 3 steps ahead of where I started back in the day…

Newsletter Series Recap

Sign Up For Aweber By Clicking Here (get started for only $1!)

Where Bloggers Fail With Money and A Story

Over the course of your blogging and business building career, you are going to be faced with many questions. The decisions made with these questions will have a lasting impact on your future growth and expansions, so answering them correctly is vital to your bottom line.

One of the biggest things I see bloggers struggle with is money. Ironic isn’t it? The thing you are trying to make also ends up being your downfall, but how does that happen? How does money kill bloggers in the pursuit of their dream and the internet lifestyle?

Where Bloggers Fail With Money

The typical road of a blogger is a hard one. They slave over content, monetization techniques and growing their blogs to make pennies on the hour over the course of the beginning stages. Then something hits. A nice spike in traffic, a great review or a feature on another site and the income starts to flow in. Even if it is not a lot of money, there is the instant satisfaction that all of this work is not going to waste and money actually can be made online!

So what does the blogger do?

Celebrates! The blogger buys that big TV, the game console or whatever other toy they have been pining for all this time. They have earned it right?! It can’t be all work and no play!

One BIG problem.

That big TV does nothing to help grow your business or invest in your future. You just took all of your hard work and invested it in a depreciating asset that will be obsolete in 6 months. All of that hard work, those late nights and time away from your family will be absolutely worthless in less time than it took you to build that small income stream. Congratulations, you just crippled your success and you are going to have to work even harder to get it back.

What should you have done?

Looked for ways to reinvest back into you blogging and saved the excess (or paid off high interest credit cards if you have them). Building a business online is no different than any other business. You need to reinvest back into the business if you want to see future growth.

Was there a paid plugin that you needed?

Was there a design or coding project you needed done?

Do you need a better camera or piece of equipment that would benefit your blogging?

These are the questions you need to ask yourself as you start to see money coming in from your blogging. That expensive “celebration dinner” might make you feel great for an hour, but the increased revenue from reinvesting back into your blogging will pay for itself over years.

Bloggers tend to get all of the advice down on growing a community and monetizing a blog. What they fail to realize is that a business can not grow without capital and they are squandering away that capital on a bunch of stuff they really don’t need…leaving nothing for the business when you need an interview transcribed or help with a new design or logo that will increase your professional reputation online.

Personal Story: What I Bought This Week

Ok…so what spurred this thought process? With some extra income in the bank from hard work at the keyboard, it was time to reinvest in my business some. While I could have gone out and bought that new HDTV my wife and I have been looking at. I instead picked up a new camera that is going to help out my biking sites A LOT. With better high ISO quality and 7 fps shooting, this Nikon D300s will be able to catch trail side shots much better than my previous Nikon D80. (Luckily for me…a lot of my reinvesting money is on stuff I like too!)

Nikon D300s DSLR with Super Wide Lens

Pictures are a huge part of the biking culture and I have been relying too much on the support of my community and friends for shots to use on the site. What I really need to do (and the reason for the purchase) is capture my own shots for the blogs. Now…armed with a Sigma 10-20 super wide and the Nikon D300s, I have zero excuse for not lugging around this heavy beast with me on rides to capture the shots I need.

As a nice side affect…photography is a hobby of mine so I get to enjoy it for personal reasons as well. Like shooting my two girls laying on a couch.

My Two Girls Shot with Nikon D300s

Now…does anyone have a Sigma 70-200/f2.8 they want to donate to RobbSutton.com? ;) You can keep up to date with what I am posting on Flickr through the widget on the sidebar.

So what can you do to reinvest back into your blog and business?

Are You Writing Articles That Have The Ability To Make Money?

While we are on the subject of making money online, generating income through your blog and every other cash infusing aspect of your blogging, we need to take a look at why some blogs are successful on a monetary standpoint and others are not.

I see it all the time…

“Robb! I have a lot of traffic, a ton of comments and everything is growing! But I’m not making a bloody cent!”

To make money online through blogging, you have to be doing two things and most bloggers do neither in their pursuit to fire their boss and live the life they dream.

  1. You have to attract a reader that is actually prepared to spend money.
  2. You have to publish posts that actually generate revenue.

Sounds simple doesn’t it?! Then why aren’t more people making a living online? Let’s tackle each of these quickly so you can get an idea of what I am talking about and apply it to your blog.

You Have To Attract A Reader That Is Prepared To Spend

Your 1,978 comments don’t mean anything if those comments are coming from readers that are not prepared to buy something. If you just want to grow a blog for the community aspect and you enjoy writing, that is great! Keep on rockin’ it! But…if you are looking to generate revenue (cash…that stuff that pays the bills), you have to take a serious look at what kind of reader your content is attracting.

Articles like reviews of products and services, complex tutorials related to your field and other valuable resources will attract a reader that is looking to solve a problem. Generally, problems are solved in this world through products and services that you can either provide through your own products or by promoting someone else’s products and services (affiliate marketing). By attracting the readers looking to solve problems and solving that problem for them with a solution you recommend…you are setting up the possibility to profit off of that readers needs.

Attracting a bunch of know-it-all’s with controversial opinion or pining after that first page of Digg isn’t going to bring you a reader that is ready to buy. It might get you traffic…but unless you are ready to make basically nothing until you have 100′s of thousands of visitors…that is probably not the route you want to take.

Publishing Blog Articles That Generate Cash

Once you have an audience that is actually ready to spend some cash, you have to make sure you are publishing content that will actually result in that monetary spending.

We’ll take blogging about blogging as an example because all of you guys are familiar with it and a lot of people try to jump into this field and fail miserably. You know all of those list posts about “how to blog”, “how not to blog”, “how to get more readers”, etc?! They are worthless. Well…wait…let me rephrase that…they are worthless if you are not selling a coaching program, offering up a free eBook about blogging for newsletter subscribers or complimenting that content with something that generates revenue for your blog.

Let’s take another example. On Bike198.com, I write a ton of tutorials about how to ride, how to become a better rider, etc. Every single one of these post have basically zero revenue by themselves. They do, however, attract a reader that is looking to become a better rider. This way…I am funneling traffic to my Ramped Riding eBook and my newsletter which are both profitable for the site. See what I mean about complimenting content with cash generating assets?

It is vital that you create a business model that promotes online spending by providing online resources that funnel traffic to your own products and services or the promotion of other people’s product and services.

Some Final Thoughts Cash Generating Blogs

The blogs that do this really well can make a great living online with smaller traffic. It is all about attracting the right reader and solving their problems by creating solutions that generate profit in your blogging. It is a win/win for both you and your readers and by providing these solutions…you are gaining their trust and positioning yourself as the expert in your field.

Just blogging is not a business model…but selling your own products and services or the promotion of other products and services (in the corporate world we call this a Rep) is a solid business model that can grow with time.

If you are expecting to have a small amount of traffic convert well with affiliate banners and PPC campaigns, you are going to be constantly counting pennies while the bloggers that do this the right way are counting 5 to 6 figure incomes with the same amount of traffic.

What Probloggers Won’t Tell You – Blogging is Bloody Hard Work!

You’ve got to love the life of these probloggers. They roll out of bed around 9:30am…make a cup of tea…check their bank account…read a few emails…respond to a few comments…choose a guest post…stroll down to the cafe for brunch…check the bank account…record a six-minute video…read a couple of blog posts…check the bank account…go to the gym…pick up the kids from school…write a page for their next eBook…check the stock portfolio…sit down with the family for dinner…write the next newsletter promoting one of their mate’s products…check the bank account…and on it goes…it’s a tough daily grind I’m sure.

Then there’s the REST of us…

…up at 6am to go to a real day job…quickly check your overnight traffic before you leave the house…listen to your favorite blogger’s mp3 on the train or in the car….sneak a peek at your Twitter followers during breaks…spend lunchtime making notes for tonight’s post…check your traffic before you leave the office…rush home to check your stats again…immediately log into the blog hoping there might be a non-spam comment….delete the spam comments…read all the email offers from every problogger you’ve signed up with…watch a training video about long tail keywords….research your niche…find some images…pump out as much unique content as is humanly possible after dinner and before the kids go to bed…put the kids to bed…tweak the post and publish…post some comments on related forums…post some comments on related blogs…look up at the clock…“Oh shit! It’s 10:30pm and I  haven’t eaten dinner yet”…nuke some chicken strips…search for affiliate programs aligned with your niche….wipe your blurring eyes….take one last look at your traffic stats….stumble to bed…dream about the life of a problogger…wake up…and start the whole process again.

The Proof is in the Traffic

If you’re not well known for blogging about sex, gambling, gadgets or making money on the internet, then you’re one of millions of content producers who struggle for readers.  If people aren’t commenting about the circles under your eyes, or your fingertips aren’t bleeding at least once a week, you probably don’t have the traffic you think you deserve.  If your significant other isn’t totally frustrated with the amount of time you spend in front of ‘that stupid computer’, then there’s a good chance you’re simply one, out of 9 million websites, battling for readers attention on the net…and not getting much success.

The reality is blogging for a living is bloody hard work!  It requires a creative tenacity, and capacity to network, which most people simply don’t have.  After spending two years writing a book in my spare time, I discovered my creative tenacity.  This post is part of the networking.

When I started my blog, it was simply going to be a marketing tool for the book.  Now, I’ve been sucked into the blogosphere.  Seven months and 130 posts later, I’ve tasted what this lifestyle might provide, although it hasn’t come without a price.  My book still isn’t finished…but my blog is page one on Google..:)

So why DO these Probloggers lead such great lives, with a freedom of choice most of us only dream about???

Because their fingertips bled for many years before you and I ever heard of them.  They put in the hard yards, fighting in the trenches of content creation warfare…and they won!  Real probloggers don’t live a life like I joked about previously.  Real probloggers run their blog(s) like a business and some actually have staff and office space.  They’ve incorporated and learned to use marketing, legal and accounting professionals to help grow their business.

They use intention to focus on what they want to create…then they take action. Probloggers not only contribute content to the masses, they contribute to the economy by creating jobs and consuming other people’s services.  In addition, they expand the economy by teaching others how to do the same thing.

Can anyone blog?  Yes.  Will everyone who blogs succeed?  No.

Why?  Because most people won’t endure through the early days of blogging.  After a few months of having no readers, receiving no comments and getting no joy from Google, most people give up.  They don’t treat their blog like a business.

Robb, Yaro and Darren invested years of effort to get where they are now.  If you think that in six months you too will have 1000’s of readers and be making a living from your blog…well don’t feel bad if it doesn’t happen.  But keep at it!

To be successful: work on your blog daily…follow the probloggers mentioned in this article…download and study their free eBooks…try out their suggestions…buy their courses…network with other bloggers…test, measure and tweak…but the most important part of blogging is the creation of something worthwhile to read!

What have you written today?

Write On!

This was a guest post by Curtis Chappell. Curtis blogs about taking control of your thoughts and words through an intense process of self-analysis at curtischappell.com/blog/. Chris is working on publishing a book titled ‘Reading Between The Lines, The Hidden Power of Language’ so head over and check it out.

Welding image by Ethnocentrics

Monetizing Your Blog and Making Money Online

A question that flows across my desk with increased frequency is how to make money through your blog. While I have a page on this blog spelling out how I make money online briefly, I want to go a little bit more in depth on how successful companies (online and storefront), continue to see revenue increases year after year. What many bloggers fail to realize is that the same way brick and mortar companies continue to increase profits is the same way you need to increase income as a blogger.

However, there needs to be one clear focus through this entire process…without quality content and an audience to sell to…you have nothing. For this reason, beginning bloggers need to spend 95% of their time generating quality content that people are going to want to read. As you produce this content on your blog, you need to promote it in a way that attracts more readers. After you have created a following and have significant content on your blog, you can start to shift some of your resources towards monetization.

Case Study: How Best Buy Conquered Circuit City

Best Buy vs Circuit CityIn the United States, we had two major players in the electronics retail industry…Best Buy and Circuit City. Each of these two retail companies started off with very similar business models. Each was going to sell TV’s, audio equipment, small electronics, computers, music and movies to the retail buying public. In most cities, you could find one store a mile or two away from the other, so they were in direct competition for the same customer base for the same general product offerings (brands were sometimes different).

Circuit City held true to their original business plan and changed basically nothing throughout the course of their operation. The stores stayed relatively the same, product lines did not expand and their approach to the retail market went unchanged over the years.

With Best Buy, we started to see shift. The stores were increasing in size to accommodate a wide range of new products. We started to see washers and dryers, refrigerators and small home appliances. Best Buy was positioning itself to be a one stop shop for everything in your house that you had to plug into a wall.

What happened over time? Best Buy’s market share continued to increase as Circuit City’s started to decline. The new product offerings were increasing their customer base and attracting more buyers to their stores. As I mentioned before, Circuit City and Best Buy were competing for the same customers, so as one increased…the other had no option but to decrease. Best Buy’s diversification pushed Circuit City out of the market and into eventual bankruptcy and shut down.

What can you learn as a blogger from this case study?

A lot of bloggers focus on making money online through one or two avenues. After awhile they start to see some monetary success, so they continue to beat that one avenue into the ground. All of the sudden, something bad happens. That market they have been focusing on for so long dries up and they are left with nothing!

Case in point…Adsense. When Google Adsense first hit the ground running, they were providing LARGE payouts per click. If you were not around several years ago…you didn’t see this, but there were bloggers making an obscene amount of money with very little traffic. What this caused was a massive influx of new bloggers riddling their blog space with Adsense ads. Over time, the market became saturated and you no longer see the gigantic checks of the past without a massive amount of traffic (see Shoemoney.com for his 200k+ check from Google).

So what did Jeremy at Shoemoney figure out that the rest of the Adsense wave riders didn’t? He realized that the wave was not going to last for forever and he started diversifying his business so that…when it did go away…he had other aspects of his online venture pulling their own weight.

The reality of any successful business (why do you think Pepsi and Coke sell more than just cola) is diversification. The side effect is that…by diversifying your income streams online (affiliate, direct, pay per click, informational products), you do not have to make as much money from just one source! Just think…what if you were making just 600 dollars a week from each online revenue source…

Seems a lot easier than making 2,400 a month from just one source doesn’t it?! On top of that, if the well ever dries up on one source, you still have several others performing well to pick up the slack.

The same can be said for blogs. What if you have 3 blogs all bringing in income? And each of those blogs have several sources of income on their own?! Starting to see the big picture?

Warning: After reading that…you will feel the need/desire to go out and start several more projects. DO NOT take on more than you can handle at one time. Slow growth is the best growth and if you can not give all of the projects the attention they will need…do not start new ones. Diversification is key, but spreading yourself too thin is worse.

One of the major mistakes a lot of bloggers looking to make money off their blog make is relying to heavily on one income source. They find an area of their niche that becomes a little bit profitable and they beat that into the ground. Once it goes away or competition increases, their entire revenue decreases dramatically. You need to continue to experiment with as many ways to make money with your blogging as possible and continue to diversify your offerings to your readers for long term blogging success.

Some examples of blog monetization sources:

As you expand your offerings while still providing value to you readers, you will start to see your blog income increase dramatically and you will not be dependent upon one source of income. If you look at any of the highly successful bloggers online, you will start to notice that they are applying this technique for long term success and it is that same technique that you need to apply in your blogging to make sure you are profitable in the long run. Without diversification, most companies will fail…with diversification…you can continue to expand and grow with your readers.