How much money can I make with a blog?
The best way I have found to calculate approximately how much money you can make with a blog, is to look at conversion rates. There are typical conversion rates in the marketing industry for the different types of promotion. It’s basically a numbers game!
An important aspect of marketing and especially conversion rates is relevance. If your blog provides useful information about a subject that your visitors are interested in, then they are likely to be repeat visitors to your blog, sign up to your email list and probably buy the products you are promoting. This is why it is best to research what people are interested in and also the subjects that are easier to promote. Then you can focus your blog on what visitors want to read and want to buy.
If someone is looking for a battery powered car tire inflator and your blog talks about different models and people’s experience with them and then you show them an advert for a highly rated one, there is a better chance that they will buy a foot pump through your affiliate link than if you suddenly tried to sell them a book on gardening!
With google AdSense it is common to get a 5% conversion rate. Which means for every 100 visitors, 5 should click on an advert in the google AdSense ad block. By dividing 100 visitors by 5 clicks, you get one click per 20 visitors on average. If the payment to you per click is $2 then you can work out the conversion rate per visitor. In this case $2 divided by 20 visitors equals 10 cents per visitor on average. Therefore, if you have 2000 visitors per day to your blog, you should be averaging $200 per day with google AdSense.
It is possible to get a higher AdSense click than 5%. I have found a very relevant blog post gets more like 15% but the advantage of working with the industry average of 5% is that if this makes your blog profitable, anything else is a bonus.
Selling a product:
This can be your own product or someone else’s product where you get an affiliate commission.
If subject of your blog is relevant to the product, or at least to the blog post the product advert is about, the conversion rate is typically 0.5%. This means you need 200 visitors to view that advert to average one sale. If that sale pays you $50, then $50 divided by 200 visitors equals an average income per visitor of 50 cents.
If you have 2000 visitors per day then the average sales per day would be 2000 visitors divided by 200 equals 10 sales per day. If the commission is $50 per sale then that would be $500 per day.
An important point here though is if your entire blog gets 2000 visitors a day then unless the product advert is relevant to your whole blog then you might only have a fraction of those visitors considering purchasing. For example, maybe only 500 of those 2000 have seriously considered that product advert, so now you might only make $125 per day.
This is why selecting the right adverts for your blog is so important. If you have a product that everyone would be interested in, it stands to reason that it would have greater potential.
If you have an email list and you send an email to the people on your list and that email is relevant to what they are interested in, then the conversion rate is typically 3%. If you have a good relationship with a proven track record where everything you sell through your email list gets great feedback, then the conversion rate is typically 7%.
Therefore, if you have an email list of a 100 people that are interested in what you are promoting, then you should get 3 sales every time you send out an email promoting a product you are selling. If this is a product that pays you $50 commission then that is $150 per 100 subscribers on your email list.
This is why email lists are so important and why people want to grow their lists. If an email list of only 100 brings you $150 every time you send out a promotion, imagine how much more a bigger email list will make you. It’s not difficult to have an email list of 10,000 subscribers.
This would make on average, with a 3% conversion rate per promotion of 10000 divide by 3% equals 333 sales on average.
333x $50 commission makes you $16,650 every time you send out a promotion with a $50 commission. Now of course if you send out too many promotions, your subscribers might stop opening your emails. It’s important to keep your subscribers happy. The best way is to send occasional emails with a promotion but other times to send out useful informative emails so they will be opening your emails every time you send one.
The correct way to do email marketing is in my email marketing guide. Coming soon
Check out my guide on how to start a blog on bluehost — click here