Whether you are a blogger or just enjoy reading blogs online, you may have wondered how much bloggers earn from blogging and whether all the effort is worthwhile from a commercial or alternative revenue perspective. If so, then read on. Based on my earnings from this blog over the last 8 months and some quick research around the web I have extrapolated some simple approximations of how much bloggers of differing (online) sizes could potentially be earning. There are two main sources of income when it comes to blogging - Click to Pay programs (like Google Adsense, Yahoo Publishers, Adbrite) in which you get paid every time an advertisement (ad) on the site is clicked and Affiliate programs, where money is earned when a user sign’s up for a product or service through an ad on your site (like Amazon and Commission Junction offerings). For other income sources, like paid text links or sponsored reviews, I have created the “other” category. The following is what I have determined to be earning assumptions for each type of income source:
Click to Pay (CTP) programs – are worth on average 0.30c per click with an estimated 3% Click-through-conversion-rate (CTCR). The CTCR rate describes what percentage of site visitors click on a revenue generating ad. Using these metrics a site with an average of 1000 daily visitors will earn, 0.03x1000x0.30 = $9.00 a day.
Affiliate Programs - There are literally thousands of affiliate programs available with different payouts. To simplify things, and extrapolating from my own experience and research let’s conservatively assume that the affiliate program payout is about 2.5 times the Click to Pay program average daily payout. So using the example above, the Affiliate program payout would be $22.50 a day.
Other Sources – This includes private ad deals, text links and sponsored reviews. Almost impossible to work out an accurate income estimate for this, but using my numbers the daily average would be about half the CTP program earnings. This is equivalent to $4.50 per day based on the above example.
Given I am in the personal finance blogging space/domain (with occasional articles purely about blogging like this one), I used the above calculations for a cross section of established bloggers in my domain whose average daily visitors statistics were publicly available (via Sitemeter). Here is what I found their daily earnings would approximately be (rounded to the nearest dollar) based on the above assumptions. Note: This is only my approximation and by no means a representation of their actual earnings. I have only used actual blogs to provide realism for the visitor numbers (and because these are blogs I regularly read)
So how accurate do you think my estimates are? Am I way off with my earning/income rate assumptions- too low or too high? Share your thoughts. Personally, I think I have been very conservative with my estimates and the blogs that get less than 3000 visitors a day probably make much more than I have estimated in the above table (due to higher affiliate and other revenue income sources), while those with more than 30,000 visitors – many repeat visitors – probably do not generate as much in revenue from affiliate sales as assumed. Still I think it gives you a good “rough” idea of what it takes to make money blogging.