Wednesday, March 10, 2010

Lecture nine: Money Makes the World Go Round

  1. If a dead-tree medium falls in the forest... can it become a nurse log?
  2. Can blogging pay in the era of freeconomics?
  3. Amazon and other affiliates
  4. How pay-per-click works
  5. Display adverts and providers
  6. Newsletters role in the blogosphere. Poindexterish?
  7. Micropatronage and blog sponsorship
  8. Merchandise me!
  9. The cruel truth about exposure
  10. More, I want to know MORE about monetization
  11. Your mission, week nine

Assignment: Add one or more of the following: Google AdSense, a widget, blogroll, a "best of" panel or labels. Monitor statistics, especially referrals, from last week's community outreach, then report on your findings.

Feedback: (Mike) Q&A, tech troubleshooting

If a dead-tree medium falls in the forest... can it become a nurse log?

The media's abuzz about the death of tangible media. Recently casualties include Gourmet, Modern Bride, National Geographic Adventure, The Seattle Post-Intelligencer and The Rocky Mountain News. The Christian Science Monitor became America's first nationally circulated paper to move entirely online. Magazines like PC and Playgirl have done the same, digital migration.

In 2009, 428 titles closed, compared with 618 in 2008 and 643 in 2007. The good news? The rate of decay is slowing. But new efforts are down from 335 in '08, according to Mediafinder.

“Despite the difficult year for the magazine industry, more than 275 magazines launched in 2009 – showing there is still strength in the regional, health, and food categories, with Food Network Magazine reporting more than 1 million readers,” explained Trish Hagood, President of Oxbridge Communications, publishers of MediaFinder.

Some of this turbulence is good, as Steve Rubel, Director of Insights for Edelman Digital, pointed out on Micropersuasion.com in November 08. "We're moving fast toward becoming a society that consumes media entirely in digital format. Part of it is environmental, but a lot of it is because of broadband and connected devices. Now of course it will take a long long time for this to become a global phenomenon. But in the US at least, the pace has picked up a lot just in the last few months."

The buzzword here is "media green" ... and the trend's advantages are obvious. But now the debate centers around how to keep content-creators fed, both long-term professionals and "citizen publishers" stepping up to the plate like us.

The answer may well lie in technology from smartphone apps to electronic ink, which prevents the eye strain often provoked by backlit displays. Even in bright sunlight, e-ink pages resemble those of a paperback.

Products like Sony's Reader, Amazon's Kindle and Barnes & Noble's Nook allow folks to download books, blogs, magazines and newspapers onto a wireless device. Portable, the 1/3-inch-thick Kindle is often called the last digital great hope: even Oprah's a fan. The idea's pretty basic: make it easy for users to pay for quality content and, a la iPod, they just might. But Amazon employs a proprietary format: Digital Rights Management (DRM) issues diminish the Kindle's appeal for many. Here tech-writer Yardena Arar reviews the best e-book readers in a 2009 PC World article.

In another article, the author notes that emerging technologies will soon blend color and video into such devices, along with more swiftness and sturdiness.

In early April 2010, Apple launches its much-heralded tablet computer, the 1.5-lb iPad, weighing in from $499. Here two experts debate whether this medium will save publishing. Hopefully, as Tony Bradley, co-author of Unified Communications for Dummies, points out in another article: "Traditional media – whether books, magazines, newspapers, music, or movies – stillneed to grasp the digital landscape, and the changes that it brings for the economic models they have built their businesses on for decades. Somewhere out there is a revenue structure that creates a win-win-win for the publishers, the platforms (like the iPad and the Kindle), and the customers."

Electronic paper could take this a step further, introducing flexible, scrunchable displays. I have high hopes that bigger canvases will encourage some of print media's "eye candy" elements – like strong photography and design – to migrate into cyberspace.

The web's future is uncertain, but with that instability, brings much excitement. Check out this great article for an overview of where this all could lead.

Can blogging pay in the era of freeconomics?

As we noted in earlier posts, blogging can pay, even in a freeconomics climate.

Yummy, Freeconomics. Will I get rich quick?
Probably not, unless you start working full-time on a niche blog and studying SEO in depth.

Slate magazine's Blogging for Dollars dug into Technorati's 2008 State of the Blogosphere report and revealed that sites "with 100,000 or more unique visitors a month earn an average of $75,000 annually—though that figure is skewed by the small percentage of blogs that make more than $200,000 a year. The estimates from a 2007 Business Week article are older but juicier: The LOLcat empire rakes in $5,600 per month; Overheard in New York gets $8,100 per month; and Perez Hilton, gossip king, scoops up $111,000 per month."

Before you dash off, Gold-Rush-style, heed Slate's warning: "Once a blog hobbyist goes pro, he or she faces a daily pressure to churn out new material. In the wrong mind, that can lead to top-10 lists, recycled ideas, half-baked notions, lots of viral videos, and a general increase in information pollution."

I'm with usability expert Jakob Nielsen on this. "Avoid quickly written, shallow postings. Instead, invest your time in thorough, value-added content that attracts paying customers."

Mike and I both find affiliate programs, like Amazon Associates, to pay off quickest for "dabbling" bloggers.

Amazon and other affiliates

Recommend stuff, get paid: the idea's so simple, so very ... viral. Yet pound for pound, Amazon Associates may be the quickest way to see financial results for your blogging efforts.

The drill? You name-drop books, DVD's, garden implements and novelty mustard kits: whatever floats your boat and is available in the Ur-Warehouse. Amazon gives you a unique code, which attributes the referral to your account. Then it kicks back a thin slice, 4-10% of any profit, via gift certificates if you prefer.

Yes, it's all very "company store" ... but as someone who runs up a big media tab each year, I won't complain much about those frequent $25 gift certificates.

Amazon recently revamped its system, so associates have a top-page nav bar that can "link to this product," among other neato tricks. Users can chose between text and image, image only and text only, adjusting colors to suit a template. I'm still wary of its text links, which embed all types of lame-o spacing into the mix. Instead I look at the autogenerated HTML code, pick out the "http://blah" bit, then paste that into my WYSIWYG program. Like this.

The class blog features an Amazon widget, right-hand side. Graphic- and link-rich, these ads are customized – you handpick each element – and quite productive. A determined person could gain ground quickly here.

How pay-per-click works

As Chris Anderson points out in Free! Why $0.00 Is the Future of Business, "Thanks to Google, we now have a handy way to convert from reputation (PageRank) to attention (traffic) to money (ads). Anything you can consistently convert to cash is a form of currency itself, and Google plays the role of central banker for these new economies."

Google Adsense places commercial notices on your site – ideally ones tailored to your content, hence the label "targeted ads". You receive micropayments for readers (CPM – cost per thousand impressions: the "M" is the Roman numeral) and more if they take action (CPC – cost per click).

Sometimes Google gets it all wrong. Road Remedies', for example, veers off on alopecia cures every time I blog about beehives or hair, due to title ambiguity. When I've shifted the subject from Seattle to Palau, the front-page ads don't quite caught up and still advertise Seattle Singles, Condo/Lofts and Puppy Housebreaking for a few days. Recently I clocked a creepy ad for "Dr Oz Resveratrol". Should that turn out to be BS snake oil, I'll blacklist the site. AdSense allows publishers can block certain URLs, set content filters and chose default ads.

Note that I didn't follow-through my own Google Ad there ... I could be liable for click fraud, if I did. So I cut and paste possibly offensive addresses, then decide how grumpy I am about them.

Searching on"ResV" reveals it claims anti-aging, weight-loss and antioxidant abilities (yup: snake oil – nailed that in one). I'm dubious and reckon most of my readers would be too, if they gave a fig about such things. But unless something's actively aggravating – like adverts from the local cult church that suppresses women – I generally won't A. notice or B. take action. Life's too short to crack-down on every cellulite-burning scam...

Politics aside, Adsense let's you rock the fashion with custom color scheme and freedom to decide where adverts go (so liberating for "dead tree" media types!): banner, sidebar, even live-linked into your text. Google has an excellent tutorial on placement, which I won't attempt to nutshell: just read it.

The amount you earn varies, based on how much advertisers are bidding for certain keywords (check out Google AdWords, if you're curious about this process). Certain types of blogs see the best results, like those focused on products, hobbies or niches. Take another look at the best paid blogger list: most are tech, marketing and self-help gurus, except for Sharon Maguire's site. Cleanly integrated ads led dogbreedinfo.com to earn $650 per day. She talks technique here.

A journal-style blog, like RR, that meanders over many topics won't quickly rake in major cash (in fact, Google makes you wait until the $100 mark before cutting the first check, annoyingly). But with enough promotion and dedication, even a diarist can turn a profit.

Display adverts and providers

Tired of the G-domination? Duck around the mighty Google machine by selling ads directly (let's fact it: a TON of work) or allowing another company do the heavy lifting.

A display advert is, well, a big, pretty graphic one, as opposed to the "listing" style familiar from classified. Adsense lets you select either style (or both).

A few middle-man options:

*AdBrite serves nearly one billion pages daily, placing top brands like GM, Verizon and AT&T. Multimedia formats can take advantage of photos and video clips.

*BlogAds, a pioneer in the field, matches advertisers and bloggers. Small companies or individuals can choose your site, then you can agree or pass, depending on your convictions. Here, you can see how that works with wonderful transparency. Of course, we're talking about a range from a $18,000 top-right space in Perezhilton.com, a sport high on the bell curve's end, to a $20 spot in CrochetDude.

*Commission Junction can pipe in ads from HP, Expedia, Yahoo, Dell , Staples, Home Deport and other heavyweights. Each publisher – blogger in this case – receives an EPC rating (earnings per 100 clicks). This shows how effectively they translate leads into sales.

Linkshare and Clickbank are two other options worth exploring.

You'll also see the term "conversion rate" bandied about: again, this measures the percentage of visitors who take a desire action, like a purchase, filling in a form or dancing like a funky hamster.

OK, I made the last one up. But you try writing about "freeconomics" all day without your brain leaking out your nose...

Can I use AdSense and another service?
Yes. You're the boss, remember? Next question.

What if someone approaches me about a bespoke ad?
You can insert code via Settings>Page Elements>Add a Gadget>hml/javascript. But remember to consider the whole process, when setting your fee. You need to act as a designer, fitting the advert to your layout; as an accountant, issuing the invoice and chasing it, if necessary; as a content manager, taking down/refreshing the ad, according to the contract, and finally as a webmaster, monitoring statistics upon it, should the company request this intel. Products like AdReady can centralize much of that process.

For the self-sufficient, sometimes an offer can simply be too small. A company recently approached the Greece, A Love Story site about an inch-square $30/year advert. That pays for about a half-hour of my time. As it would take longer to publish and collect the cash, I demurred. Especially as the book is co-authored and shared income, like award cash, typically donated to charities...

But I'd rather have ads *I designed* on the site than generic ones. I want to build sponsor links directly!
Hard-core DIY! Check out these links on designing good online display ads and banners, which advocate:

Newsletters role in the blogosphere. Poindexterish?

Ever popular as a marketing tool, newsletters have migrated to blogging. Personally I'm lukewarm on all this – my inbox is clogged enough. The only time I enthusiastically welcome any sort of newsletter is a listserv digest, which compresses a day's worth of posts into one, quickly scannable block.

But some folks here have businesses and charities, which benefit from a monthly or seasonal communiqué. In that case, I recommend this subscription widget. And tips by my travel- and new-media colleague Karen Kefauver, who explores good newsletter craftsmanship, including the KISS rule (Keep it Short, Simple). She also has savvy advice about Facebook and Twitter protocol for companies. Kefauver mainly teaches in California's Bay Area and via teleseminar: I recommend her highly (see her social-media class offerings).

Finally, consider cross-posting your content, noting the newsletter's release and key topics on sites like Twitter, Facebook and Linked-In.

Micropatronage and blog sponsorship

Online money conduits like Paypal allow readers to make small donations to authors. Blogger Jason Kottke coined the term "micropatronage," when he spent 2005 blogging full-time, living off the largesse of his audience.

As Blogging for Dollars reveals, he "quit his job to blog full-time and asked his readers to become 'micropatrons' at a suggested rate of $30. He received $39,900 from 1,450 people but abandoned the experiment after a year. Kottke is vague about the reasons why he swore off micropatronage, but he suggests that he was worried that people wouldn't donate year after year. In order to build a bigger audience and potential new donors, he would have had to do some of the cheesy things to drive traffic (i.e., "Top Five Best" posts) and/or become a cult of personality (overshare, start flame wars, social network relentlessly). These days, he accepts ads as part of the Deck network."

A handful of bloggers have found sponsorship deals with larger outlets. Sometimes that's an endorsed feature like Craig Romano cross-posting a hike a week on WeatherChannel.com. I worked on a Diet-Coke-branded MSN site in 2008 that mixed text with short film clips of presenters, whom the snarkosphere dubbed "video puppets". Our budget derived from the advertising end and, in fact, my editor worked at a marketing company: an odd mishmash of intentions we'll probably see more and more (MSN Daily Access ceased publication after nine months or so).

Other times sponsorship's an outright "this post was brought to you by Brand X" entry-label. As an old-school journo, I'm pretty uncomfortable with "advertorials" unless they're distinctly labeled. And the government – in the US, at least – may soon require better labeling. But in the meantime, you're da boss. Do what suits!

For charitable endeavors, turn to fundraising platforms like Kickstarter, which showcases "backer rewards" and easily processes donations via Amazon accounts. My friend, travel writer Charyn Pfeuffer, just raised $20, 518, so she could voluntour in 12 countries. Thank-you treats ranged from homemade Theo chocolate bread to 40% off three nights at the Royal Hawaiian. Pfeuffer now can trade her Blackberry for a backpack, volunteering and publicizing programs around the world. Not only will her adventures give something back to cultures she routinely covers, but she now has a powerful social-network to broadcast her findings. It's a fantastic experiment in voluntourism and grassroots media funding.

Merchandise me!

Once a brand's established, bloggers can start with the spin-off merchandising, just like a blockbuster or Pixar hit. Companies like CafePress blaze your logo or slogans onto everything from mugs to hoodies to light-switch covers – all created on demand.

The cruel truth about exposure

Hating all the business end of this? Opt out with a "conglomerate" like Gawker, a network that includes Wonkette and Gizmodo, or Weblogs Inc, specializing in tech, media and science. On a more relaxed end of the spectrum – not requiring 10 to 12 posts a day – are profit-sharing schemes like Examiner.com and Today.com, which feature a range of unedited bloggers under one banner.

Once the companies have taken their cuts of Google Adsense and other revenue streams, writers rarely see more than pennies. And clips from outlets like that can hinder a professional-hopeful more than help... An emerging author is better off posting on her own site or volunteering for a reputable webzine.

Still, any way you slice it, the deal's better than "reader blogs" currently offered by companies like p-i.com and the revered blog-giant Huffington Post, which hog all the income with honeyed promises of "exposure" in return.

As wags put it, "why would I want exposure? People die from exposure". You want to meet the bills each month. Find a network that's on the ball about tech support, promotion and search engine optimization. Otherwise you might as well remain a one-man band...

Screenwriter Harlan Ellis rants memorably about all this on a preview of the documentary Dreams with Sharp Teeth. "You gotta pay me ... By what right would you call me and ask me to work for nothing? Do you get a paycheck? Does your boss get a paycheck? Do you pay the Telecity guy? Do you pay the cameraman? Do you pay the cutters? Do you pay the teamsters when they schlep your stuff on the trucks? Would you go to the gas station and ask for free gas? Would you go to the doctors and ask them to take out your spleen for nothing? How dare you call me and ask me to work for free?"

Publicity was the answer. And, as Ellis points out, that has little value. How many DVD viewers will enjoy his interview, then seek out and purchase one of his books? "I should do a freebie for Warner Brothers? What, is Warner Brothers out with an eye-patch and a tin cup on the street? Fuck no!

"I sell my soul, but at the highest rates."

 

More, I want to know MORE about monetization

Time to hit the web, kiddies! We're here to give you a foundation and tools to grow with, not a bachelors degree in new media.

I recommend starting with Daryl Rouse's great ProBlogger article.

Your mission, week nine

Assignment: Add one or more of the following: Google AdSense, a widget, blogroll, a "best of" panel or labels. Monitor statistics, especially referrals, from last week's community outreach, then report on your findings. Feedback: (Mike) Q&A, tech troubleshooting