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How do MAJOR Blogs earn?????

Discussion in 'Blogging' started by KHMNTCPR8, Mar 4, 2011.

  1. KHMNTCPR8

    KHMNTCPR8 Regular Member

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    Hey, I've got a successful website already making affiliate sales but due to the recent google farmer update my website traffic is shot.

    My website is in the perfect position however to transition into something bigger and better than it was before. I want to turn it into a major news, entertainment, video, and pics site. I've got in contact with some major players in the web design field so creating it isn't so much the problem (nor will the writing be as I've already got a team of writers). My question is how the hell do major blog sites earn money?? Is it strictly CPM and selling ad space? I mean I obviously see the ads but do they really generate substantial cashflow from CPM? (I've never used CPM so I'm not sure how much can be made with it)

    Check out some examples of sites I aspire to be like:

    http://www.joblo.com/
    http://www.justluxe.com/
    http://fora.tv/
    http://bloginity.com


    These sites get big traffic, but it also looks like they are paying a lot of money on development and on workers. How much do these sites make? Do they make in the XX,XXX per month region? If not, thats embarassing.
     
    Last edited: Mar 4, 2011
  2. Nick Flame

    Nick Flame Executive VIP Premium Member

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    Most of the major blogs are owned by large corporations with millions of dollars in vc capital. They are not always profitable in a sense like revenue - costs. They are looking to build a pretty big website, that can be sold for millions of dollars... OR get so big.. that they can charge extremely high cpm to large cpm companies - that you do not have access to.

    During that time, they are not profitable. They can afford to pay a team of 10 writers, and seo and development while making just 4-5k per month because they will recoup their investment at the exit.

    In this kind of things, there are other considerations than the classic revenue - costs.

    For instance, techcrunch makes a very significat portion of its income from TECH conferences. If they were to rely solely on cpm received from their website... they would probably be dead by now. And they sold to aol couple months ago for 30 mil $.

    You can't build a new techcrunch and rely on the advertising revenue alone. You'll burn masive cash in the beginning, paying writers with virtually no revenue till you get big.
     
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  3. KHMNTCPR8

    KHMNTCPR8 Regular Member

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    Thanks for the fast reply.

    Hmm, I was thinking about selling my site when it got to be really spectacular, but I didn't know that's what most of the major blogs do, but then again all the major sources are under some sort of corporate network.. Maybe I could do the same in the future, I'll just follow my dream and create an awesome site. When I own an awesome site its bound to be worth SOMETHING..
     
  4. NapsteR

    NapsteR Jr. VIP Jr. VIP

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    Excellent post Nick.. I am building an authority blog too. May be i can sell it for a good price ..
     
  5. Monrox

    Monrox Power Member

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    In addition to what Nick Flame said, there is the law of diminishing returns which states that there is a point when the more you produce, the smaller the profit % becomes. If you have a 100 pages site, the upkeep costs $100 and the revenue is $200 you are earning $1 per page.

    If the upkeep of a 1000 pages site is not $1000 but $1200 and you still get $1 per page, your earnings are diminished (but you are still earning more). Eventually you will reach a point where growth is not desirable at all.

    In this regard you can't have a dream to have a humonguos site and expect to make money from it.

    Things are complicated in IM. It is not that expensive to host gigabytes of data but to be popular we depend on search engines. Since they hate letting a single authority dominate many search niches, it is pretty easy to start getting diminishing returns.

    The solution is to have multiple smaller sites catering to loosely connected subniches. Like a site about c++, another about java etc. Currently nothing would prevent each one to become an authority in the respective field even though they have the same owner.
     
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  6. macdonjo3

    macdonjo3 Jr. VIP Jr. VIP

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    Content and seo will get do good, but buying private pics from the paparazzi then watermarking might help.

    Good luck
     
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  7. drakerafael

    drakerafael Newbie

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    Most of the major and huge earning blogs focus on the specific niche in order to have a grip.. They no doubt do big size marketing and earn a huge amount...
     
  8. Ramse

    Ramse Jr. VIP Jr. VIP Premium Member

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    A really awesome explanation. This always interested me, and I'm so pleased that I read an informative article like this.