Once you get a taste for what it’s like to bring in a consistent stream of revenue through your blog you’re not going to want to stop! It’s exciting to earn a little here and there especially if you enjoy what you write about!
But it’s been proven time and time again that the difference between those that stay at a very “casual” financial level of growth/return and those that continue to grow consistently and successfully is simply this: Their ability to make decisions based on a business perspective.
The thing here though is you don’t have to go “pro” to have a business perspective and you don’t have to see your blog as a business wholesale to do it either! All it takes are a few very important ingredients:
1. Financial Management and Reporting
The first thing that you’re going to want to do is to start tracking religiously what comes in and what comes out. Technically this is called ‘Profit and Loss’ or what you earn and what you spend!
Any good business keeps a detailed log of their financial state and so should you! You can do this in a number of different ways, from Microsoft Excel spreadsheets to full blow desktop software like Quicken or many of the fine web services (like Freshbooks) that exist.
Heck, you could use pencil and paper if you’d like! But the point here is that you should begin seriously tracking both where you earn your money, how much you earn, and then (of course) what you’re spending (in anything).
One great suggestion for a web service that I’ve helped other new bloggers use is BudgetSimple.com:
It’s a free service and you can quickly create a list of expenses as well as income and add the values in quickly. It’s super-lightweight and you can access it anywhere!
Some actual expenses you might have that you could put in BudgetSimple:
- Web Hosting
- Domain Registration
- License Fees for web services, products
- Capital costs for software purchases
And of course your income lines could be categorized as some of these:
- Advertising Networks
- Affiliate Marketing
- Paid Reviews, Sponsored Posts
- Blog Networks, Guest and Paid Posting
- Selling Products, Merchandise, and Expertise
- Services and Business Development
- Premium Content, Auxiliary Sites, Donations, and More
Or, you could even dive in more specifically and just list out the businesses or sources directly:
- Amazon Affiliates
- Standard Theme Affiliates
- Direct Sales from X Company
- Paid Reviews from Y Company
- Product Sales for Z
And more! Try it out and see if you like it. They even have some simple reporting tools as well:
2. Goal Setting
After you create your financial management workflow and/or system you’re going to want to set some very strategic goals for yourself as it relates to your earnings.
It might be tough to be both realistic as well as challenging since you want to make a very educated financial goal based on your traffic numbers, engagement, and more and yet you’ll want to push yourself to really go above and beyond just a mediocre earning, right?
You’ll eventually land somewhere and that’s the most important thing: Set some financial goals based on your budgeting and financial management in step 1 and then write them down some place.
Then get started on completing (and beating) that goal! All businesses have financial goals and your blog (as seen from a business perspective) should too!
3. Review and Refinement
Finally, any good business will systematically and consistently review how they are doing as a company and refine their strategy after reviewing the cold, hard data.
You need to do this too. I review my financial goals every quarter (every 3 months) unless something has dramatically changed (won a huge contract partnership, launched a new product for sale).
Not only do I review but I also spend time refining the goals as well as focusing my efforts more strategically.
For example, if I had the following 10 affiliate marketing channels with the following breakdown of the previous quarter in terms of earnings…
- Affiliate 1: $0.59
- Affiliate 2: $$11.32
- Affiliate 3: $169.95
- Affiliate 4: $0.11
- Affiliate 5: $5.85
- Affiliate 6: $384.18
- Affiliate 7: $87.38
- Affiliate 8: $17.31
- Affiliate 9: $34.96
- Affiliate 10: $2.23
… I would focus my energy and time in the next quarter on just Affiliate Programs #3, #6, and #7 which grossed the highest so far. My goal would be to focus all my energy and time that was being given to the other 7 and instead increase already-profitable channels to really maximize earnings.
Review and refinement is critical to your financial growth for your blog! Your goal is to work smarter, not harder!
Finally, remember that your blog is your blog and if it becomes too much of a business then you might have gone too far! It’s about maintaining a good and healthy business perspective as it relates to your blog and unless you’re going to become a Full Time Blogger or Professional Blogger then you’re best to keep it simple!
Good luck and happy blog building!