Blogonomics: making a living from blogging

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Blogonomics making a living from blogging

• by Press Flex

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• provides interesting insight into the potential
  market of blogs and the new emerging community

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Martin Nisenloltz

• believes that Entrepreneurship Blogs will
  provide millions of new blog entrepreneurs (aka
  freelance journalists) the opportunity to profit
  from delivering commercial information to the
  communities they inform

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Martin Nisenloltz

• entrepreneurs will be able to carve out local,
  ideological or conceptual niches and make a
  living, mainly by advertising to a niche market
• Facilitated by the low operating cost associated
  with blogs

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James D Miller

• argues that the blogging boom will self-destruct,
  mainly because there are just too many blogs in
  cyberspace making it difficult for consumers to
  know which bloggers they would find interesting

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James D Miller

• his views are disputed because bloggers do not
  just produce words, they also visit other blog
  sites
• each blogger reads five to 25 other blogs,
  providing commentary and insight word-of-blog
• insight can focus consumers and facilitate the
  networking of millions of minds

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Word of blog examples

• http//www.truthlaidbear.com/ecosystem.php
• http//tikiwiki.org/tiki-blog_rankings.php

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Blogosphere

• The article gives an example of the infinity of
  the blogosphere by using a simple example
• ten viewers/readers of TV/newspapers only reach
  10 consumers
• where as a connection of 10 people facilities
  100 connections (draw ten dots in a row and
  connect each dot to every other dot)
• These connections could potentially reach
  hundreds of millions of potential readers and
  consumers in one day

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Blogosphere

• The infinity of blog networks could swamp Viendi,
  AOL-Time Warner, EMAP and NewsCorp who now enjoy
  an economy of scale.
• The old economics of media he who controls
  distribution win the most readers and serves
  advertisers the best
• could be rewritten to he who relates best
  attracts the most valuable audience

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Blogosphere

• Advertisers could take advantage of the
  blogosphere by advertising to niche markets.
• Example Goods whose value increases as more
  people use them (e.g. computers, software etc.)

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So who will advertise?

• Problem traditional advertising agencies will
  not understand the potential of blogs and will be
  slow to make the transition to the new medium.
• Clayton Criston (Innovators Dilemma) is quoted
  rational managers can rarely build a cogent
  cause for entering small poorly defined low-end
  markets that offer only lower profitability

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The good news

• blogs wont need the high end brands like GE or
  Pfizer
• blogs could advertise a small businesses or a
  single item (e.g. T-shirt, book, doll etc)
• will take time but it will gain critical mass
  providing new ad classifications, including
  blog-ads

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Blogads

• http//www.blogads.com/weblog/weblog/C0_9_1/
• http//www.blogads.com/order_htm
• l

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Matt Haughey

• provides commentary on the possibility of blogs
  eventually losing their value because
• of commercialization.
• He provides some insight on the potential
  pitfalls.

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Pitfalls

• writing entries to please your readers and
  advertisers, not yourself
• posting entries because you have to, to get paid
  
• lazy fact-checking to push things in under
  deadlines
• conflicts of interest, and lack of disclosure of
  who is paying you and why...

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A Money Making Resource

• http//www.blogstoriches.com/

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References

• (2002) Blogonomics making a living from
  blogging. PressFlex.
• http//www.pressflex.com/news/fullstory.php/aid/5
  4/Blogonomics_making_a_living_from_blogging.html