Sunil from The Extra Money Blog said:
Jon – Mike at the TFB may have some input as well. Hoping he'd reply if he reads this…
$30/per article is no joke. you must have a solid "business plan" cooking in the background for this initiative. would love to peak into that wise mind ;)
Hey!
@Sunil & Jon : thx for the inspiration, I'll write a full post about that topic on TFB ;-D
In the meantime, here are a few thoughts:
- Buying low PR site (PR2 and under) is not very useful if you plan to sell text links. You won't get much money for them as compared to PR3 and over (especially since there are a lot more PR3 blogs now than ever!)
- If you are willing to pay $30/post, they mus be really good. By good I mean: articles that generates comments, are SEO'ed and have a potential for social media (e.g. drive traffic to your blog). In my experience, most bloggers don't do this (especially if they have a small blog with low traffic). No offence here, I'm just saying that if your content is incredibly good, well you should have incredibly high traffic. For the record; I don't succeed in this field all the time either. Most of my post are good, but not "good enough" to make my blog grow bigger. Therefore, paying $15-$25 per article will get you the same quality than paying $30/article in most cases. $30 seems a lot to pay to a blogger who didn't proof himself (i.e. selling his blog with low metrics). If you buy a great blog with great traffic, then paying the existing blogger even more than $30/article makes a lot of sense ;-).
- If you want to grow traffic with new posts, it makes sense to pay a higher price for better quality articles. On the other side, if you don't publish often, the $30/article will be wasted. So if you publish 2 to 3 times a week, your budget for running the site will be between $240 and $360 (+server and other potential expenses). So if the blog makes $500/month, you have a net operating profit of $260 – $140. Let's say $200 for this example. Since the blog was making $500/month on a steady basis you had probably paid between 12 to 24 months (more likely 24 months), so $12,000. So your profit from the blog is roughly $2,400 per year (before taxes) on a $12K investment. That's a 20% investment return. In my opinion, that's is quite interesting.
- However, if you buy smaller blog (less traffic, less income), chances are that you won't be able to bring it to $500/month rapidly (especially with a low PR because your easiest way of monetizing it will be through private ads). If you go with sponsored articles, paying a writer the rest of the time at $30/post seems expensive as most readers hate sponsored posts and will not likely stick to your blog if you have too many. Remember that are tons of financial blogs right now. So unless your content is incredible, most readers will prefer to move toward another blog with no sponsored posts and only great content. There is a limit of how many blogs your can read in a week, so you will pick the "best ones" according to your own standard. I guess that sponsored posts won't be considered as an added value by most readers.
I have more thoughts but I think I'll write a full article on this :-D cheers,
Mike
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