How “Blog Monetization” Is Just Completely Wrong

67 | Posted In Make Money by David

A guy wants to open up a store. He is tired of his regular job and wants to do something different.

He reads a lot about stores. And then jumps right into setting up a store. He puts the shelves in there. He buys one of those big glowing “OPEN” signs. He makes everything all pretty. He looks forward to those hoardes of people who will, of course, come by to check out his pretty store.

Let’s say he even gets people to come in. He has the place all decked out. And he’s happy that he’s getting a little bit of foot traffic each day.

Then, one day, he sits down. And he asks…. “HOW AM I GOING TO MONETIZE THIS STORE?”

W.T.F?!

“Monetize” Means You’re Doing It Wrong

When Steve Jobs and Wozniak started Apple, they didn’t ask themselves “How am I going to monetize Apple?” They didn’t build computers, THEN try to figure out how to “monetize”.

When Sam Walton started up Wal-Mart, he didn’t open up his first store then ask himself how he was going to monetize.

“Blog monetization” is a buzzword phrase in this space. And, as a blogger in this space, I’m basically forced to play along. It is the language of the marketplace, after all.

But, the language we use often has a huge impact on our actions. He who controls the language controls the conversation.

The truth is that the idea of “monetizing a blog” is complete and total bullshit…

Because it means that you start a blog, do all this work to build something up, then figure out how to make money with it. It means that money is an afterthought. It means you didn’t give an ounce of thought into your business plan before you started the blog.

So, in many cases, you’ve built this… thing. It isn’t making a dime, and because you didn’t build it as a business, it might not even be possible. There might not even be a demand there.

Monetization is for business light-weights. It is for the unserious. It is children’s playtime. It is for hobbyists.

Professionals run businesses. They are building a business. They don’t “monetize” because they were building a business from day one. They had a plan. They execute it.

Blog monetizers work day jobs. Business owners end up hiring them.

Blog monetizers waste a lot of time on things which don’t matter all that much (like Twitter for hours per day). They waste time on low ROI activities. They dream about making a full-time income from their blogs. But, chances are, they won’t make it. Because they’re trying to “monetize”. They’re not building a business.

So, I’m not saying any of this to rip into you. I know a lot of my readers are trying to “monetize”.

But, I’d be doing you a disservice if I pussy-footed around this “blog monetization” thing and didn’t tell you the cold hard truth. There are a ton of other blogs on this topic who will do that for you. If you’re a dreamer, go read those guys. Once you realize you’re on a dead-end, remember, I’ll be here.

I’m a blogger, yes. But, I’m a business owner. I’m running a business. I’m better than “monetization”.

I think you are, too. But, it starts with you deciding you are.

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  • http://www.mikeslife.org Mike CJ

    You’re right of course, but the whole thing isn’t helped by the fact that a few start ups have actually done just that – built something up and left the whole question of monetization until it was up and running. Two notable examples are Facebook and Twitter. I think their stories have really contributed to the whole myth about building first then worrying about income later.

  • http://twitter.com/RogierNoort Rogier Noort

    That might be true.., but is irrelevant to the rest of us.., but I recon that’s your point.

  • http://twitter.com/RogierNoort Rogier Noort

    I like the reasoning.., it makes so much sense when you put it like that.

  • http://www.prolificliving.com/blog Farnoosh

    Love it, love it, LOVE the distinction. THANK YOU so much, David. I have never ever liked that stupid word “monetization” – for a while, my blog was my hobby; now it’s my business or part of my business. That’s it! :)

  • http://sybersquad.com Christopher Knopick

    Yeah Mike, the Interwebs are replete with “supposed” examples of build it and they will come. There are even a few blogs that have done it that way and in this space as well. However I would be remiss if I didn’t point out the millions (probably) of blogs and websites from back before the Internet bubble that built, got tons of money but never had a plan or any business and crashed severely.

  • http://dool.in Dave Doolin

    This is absolutely the case, Mike, and living in Startup Central, I talk with people doing this several times per week. I don’t believe the situation will get any better in the near term, as there is a still an ocean of fast money out there which no longer trusts Wall Street, and is looking for “startup” ROI (which is most often, as for blogs, $0, but that’s not how it’s sold). 

    One counter example is WebGreek, who is actually making money enough to hire a real developer out of cash flow. I met the CEO and the lead last night. It was nice talking to people intent on running a real business. And not taking VC money either.

  • http://dool.in Dave Doolin

    David, two things resonate here: 1. words are important, “monetize” is a horrible word, and no, you are not going to make much headway fighting it. From personal and painful experience, it’s not worth it. 2. I followed the write-first-monetize-later path, as it was nearly *universally* recommended everywhere in Blogistan.  I’m probably one of the more fortunate, having actually made a little coin at it.

    Now, I’m seriously considering using blogging to help drive a new venture, which will be free only until I get around to building in the payment handling. This is probably about a week’s work as I haven’t done this in Rails yet. Blogging as marketing for the application is something I would be very comfortable with on many fronts. But I’m not going to start until I’m taking in money on the application side.

    Adding further to this conversation, another sacred cow I’m in the process of slaughtering with extreme prejudice is this notion that one must dedicate full time, unrelenting attention to achieve success. This is simply a luxury I cannot afford, I have rent to pay. What I’m developing is being done when I have time to work on it, which is roughly 20 hours per week total. Perhaps I’m unrealistic here. We’ll see.

  • http://davidrisley.com David Risley

    True. But I bet the number of companies that manage to pull that off successfully is a minority of the number who try. Those Silicon Valley startups march to a different drummer. Most of them don’t think about delivering a product… they just think about raising their perceived value then being acquired. They patent ideas then try to sell the patents. Its all a big pool of artificial, fake value. And they’re only permitted to do that because some VC gives them a bunch of money to exempt them from the rules of economics – at least for awhile.

    But, starting a blog like a Silicon Valley startup…. hehe…. :-)

  • http://www.mikeslife.org Mike CJ

    Very true.

  • http://davidrisley.com David Risley

    Yeah, I think it is stupid that it is so universally recommended to build first, then try to make money. Seems to me that having some kind of offer out there is part of the fundamental to building up in the first place.

  • http://davidrisley.com David Risley

    For any venture to survive, it has to deliver something of value to others in exchange for money. Those ventures that don’t usually die… or they get with the program and start selling something to keep from folding. Facebook and Twitter both got into the ads business. If they didn’t, they wouldn’t be here today.

  • http://monicahemingway.com Monica Hemingway

    Absolutely on the money (pun intended). If it’s not a business, why do you expect it to make money? And if it doesn’t support your business, why are you doing it in the first place? You may “build it and they will come” – but what are they going to do once they’ve arrived, and what will that do for you and your business? Tough questions, but they’ve got to be answered before you ever start building that blog or website!

  • http://dool.in Dave Doolin

    I see something like this in all my financial statements: “Past results are no guarantee of future returns.”

  • http://sybersquad.com Christopher Knopick

    Agreed (with all)…and FYI I was just making a point not arguing with Dave, his points are spot on and something I need to remember as well.

  • Michael Barrett

    It seems if we’ve all made these mistakes – kind of along the lines of the shiny object syndrome. I agree with your article and am making a sincere effort to make the transition to business results, systemization and value building. 

    My favorite thing you said in this piece is:

    “But, the language we use often has a huge impact on our actions. He who controls the language controls the conversation.”

  • LUIS

    I once met an important man who couldn’t read or right.

  • http://www.homestudiocorner.com Joe Gilder

    I definitely agree, Dave.

    Just to play devil’s advocate here. Do you still agree with Gary Vaynerchuk’s approach? I seem to remember you gave away several copies of “Crush It” a while back. His main premise in that book is to build up something huge that attracts a lot of “eyeballs,” and the money will follow.

  • http://www.pursuitofchange.com/ Mike Tiojanco

    Something I got from Clay Collins on the topic – if you don’t have an offer when you launch your business, you really have no way to test anything you’re doing..

    You don’t know if you’re attracting the right kind of people and you don’t know if you’re writing posts that build your authority as someone people would buy from or hire.

  • http://www.HireYourVirtualAssistant.com Owen McGab Enaohwo

    I totally agree with you David the concept of Monetizing should be burnt and abandoned. If one decides to start a business then one should already know what will be the main means of revenue. 

    There is nothing wrong with iterating and pivoting to a new direction once it is determined that the initial revenue stream is not working.Monetizing on the other hand is the idea that you one to convert something that is not meant or initially created to make money into something that will. The odds of achieving such a feat usually ends up badly.

  • http://www.HireYourVirtualAssistant.com Owen McGab Enaohwo

    I don’t believe in this either, passion does not sell or make a profit, meeting a need that has a sizeable demand does! So if you are passionate about something that no one has need for you can make money from it. Also if you build an audience of people (eyeballs) who are not looking to buy anything then you will not make money. This is why I don’t buy the whole passionate movement. That said once you have identified a need and determined that there is a sizeable demand for that need you can be passionate about solving it (<<<— meeting that need)!

  • http://www.liangcha-herbaltea.com Ben Sanami (FB Liangcha)

    Hey David, first time on ur website with an android. This theme looks great!

    Right monetization is an after thought. I always believe in helping people first, profits second. Just means I have go hungry a bit : )

  • Valentina

    Point well taken David. 

    The stats may be changing, particularly in this economic milieu of increasing need to find the magic bullet that will put you back on easy street or at least keep the wolf away,  but as recently as 2 years ago Jalichandra’s keynote at Blogworld still weighed in heavily (statistically that is)for the blogging hobbyist and the gradual move towards “monetization.”  Accidental blog gurus may not be littering the cyber highways, nonetheless they exist. 

    Perhaps one of the most celebrated of these accidental bloggers pulling in the big bucks is John Chow.  Had the pleasure of sitting down with him recently and over sushi and some good plum wine, discussed a lot of stuff including how he made it big.  He started his John Chow Dot Com blog out of frustration (he already was successful on another review  style blog).  Even as a professional he opted out for Blogger as his platform.   It wasn’t until 8 months into his blogging that he “monetized” the site (had already moved to wordpress by then) and the rest is history.

    In my view people need to get started somewhere.   If they want to make money they should at the very least download an e.book from someone who has made the grade and follow it to the letter, Blogger Blueprint anyone?   A few might do this.   For the rest it is baptism by fire.

    One learns a lot about the principles of internet marketing simply by blogging.  Many tend to be mavericks (why else have they eschewed or want to escape from the 9-5 and the opportunity to move on up the ladder).  Mavericks in my experience at least, for the most part make lousy followers, they tend to do, get burned, learn from the experience, apply, and hopefully, eventually (later rather than sooner?) make good, even make it big “overnight”

    Mindsets honed on business principles, unless they are already in the ‘net’  look elsewhere for their bread and butter.  It is the lure of easy money that draws people to the keyboard, to stroke away and publish as a new dawning slowly rises:  why am I not making money and how do I monetize this?

    The language thing is deeply ingrained in our society.  It is not just in Blogistan (Hello Dave) but we find it everywhere, in every industry.  In my view to try and change this would be monumental and then what?  The starry eyed would never start – the thought of blogging as a business from the get go may be daunting or just not their thing, or …  pick the excuse from a long list of “excuses” … and that is why we have a 1%.

  • http://dool.in Dave Doolin

    The starry-eyed are rampant in “Startupistan” (i.e., San Francisco). Measured in exposure, buzz, public acclaim, etc. the non-profit-y, change-the-world-y ventures get a *huge* amount of press. All with not much more of a business model than “Feel good about changing the world.”

    I don’t know how a lot of them (the founders) even pay their own rent. It’s expensive here, at least as expensive as Vancouver.

    Then again, I have it from an insider that the non-profit industry is just that, an industry. All with it’s own rules, culture, etc. Perhaps these ventures understand how to tap that funding.

    I’d go further than the claim of “One learns a lot about the principles of internet marketing simply by blogging.” I’d say one can learn some basic principles of marketing in general by blogging. Whether people do or not is up to them.

  • http://www.stevescottsite.com/ Steve Scott Site

    Bah!

    Just to play devils advocate i was going to bring up Facebook and Twitter  But right out of the gate i see the first comment brought that up.  Darn!  Gotta be quicker I guess.

    Anyhow, besides mentioning that, I agree wholeheartedly.  If you do not have aplan and an idea of “why” you are doing it, what the results could and should be (etc.) then you don’t have a business, you have a lottery ticket.

    Sure people win the lottery and strike it big out of nowhere.  But people also get struck by lightning and I don’t worry about THAT while I head to my car in a rainstorm.

  • http://dool.in Dave Doolin

    Having read Gary V’s book (Thanks Dave R!), this is pretty much what he writes as well. Gotta have a market.

  • http://transmitautopilot.com/alz Cynthia Leighton

    Indeed! I love the distinction too, Farnoosh. I look at blogging kind of like being a kid with a tricycle — or training wheels on a bicycle — that there is a time of practice that is part of a process.

    For myself, I’m learning new skills right now. I’m going through a learning phase. Whenever I add skill sets, I recognize reality is that it takes time. As I learn, I’m continuously improving. Each of my so-called overnight successes in my past have really been harvests of effort over time.

    “Monetizing” seems like a word to suggest that there’s no learning phase, no building of skills while building a business. As in you should jump in fully formed and blog perfectly. Then one day, just turn, say “Oh, here’s the money plug-in, let me buy that!” and poof! Monetization.

  • http://davidrisley.com David Risley

    Very true. And I know Clay believes the same as I do on this one.

  • http://davidrisley.com David Risley

    Helping people and profit usually go hand in hand. When they don’t, problems often take place.

    And I know that’s not the politically correct way to state it, but I think it is true. People don’t value something for nothing. They just think they do.

  • http://davidrisley.com David Risley

    Joe, I’d have to go back and review Gary’s book to see. I read it, but I remember liking it, but if he didn’t talk about the importance of an offer, he’s dropping the ball. Even he, when het got into the wine thing, was doing it to promote his family’s store. And I doubt his dad opened up that store and then tried to figure out how to “monetize” wine. :-)

  • http://www.barexammind.com/book Matt

    My blog still basically is my hobby, but I was able to write a book using the content on the blog.  I won’t get rich from it, but I know it is helping people, so that makes me feel good.  I am contemplating other online business ideas that will incorporate blogging as a main driver of traffic, so I appreciate how you have made the transition from hobby to business and I also appreciate David’s thoughtful post.

  • http://thephotographerblog.com Mandy

    So I’m one of those short sighted people who didn’t have a plan and has monetized by blog which only brings in a little money. I know, I know – I told you so!!!

    But I don’t think it’s too late for me and after taking your advice in these past couple of weeks I am changing the way I work and run my ‘business’.

    I’m not there yet though so keep it coming…

  • http://pulse.yahoo.com/_BSMTAFW2WNXQSTB3KVMCT2OTJI Cynthia Leighton

    Ah! Did not think of that.

    I’m building it in, so I should be okay.

    So how is it that “everyone” gives freebies as incentive to join list? Is that also not valued? Or is the exchange of email address sufficient exchange of value then??

  • http://twitter.com/ITSergioFelix Sergio Felix

    Hey David,

    Not sure if I didn’t understand the overall feel of the article but it just seems to me that the concept of monetizing is bad because it is not equal to running a ‘business’.First of all, what is monetization and what is a business?Can you build a business without monetization?Can you succesfully monetize something without being a business?If I build a training funnel which is free but makes money based on affiliate marketing resources then it is not a business?If it’s not a business then why so many people call themselves online entrepreneurs running online businesses when all they do is recommend resources as affiliates and don’t have any products created by themselves?I’m asking because I want to know, not to create controversy.On the other hand, people like Ed Dale recommend to ‘test the waters first’ to see if there is demand on a niche and only then, build a big business around it by monetizing it.So as you can see, it’s confusing to me…You said “blog monetizing” (the two words) is wrong, I think I do understand if you mean that because someone has a blog, he/she may think he/she is running a business when it’s not (I almost completely agree with this)But you also said “monetize” is wrong later… so is it just the word that you’re not comfortable with or what is it?Sorry I did not understand what you were after.Many people are forgetting that blogs started because people actually wanted to share their knowledge or their thoughts to the world and definitely never thought about how to monetize their traffic.I know it because I was there when the whole thing started.Sergio

  • Anonymous

    David
    I do agree, however I got into this without any previous knowledge of online commerce and just started with a topic I am very familiar with-Marketing.  I dove in and now I have some knowledge, some content and have learned a TON.  My offline businesses are doing well and I am now trying to integrate both worlds.
    So, my only distinction would be to not spend too much time “thinking” about the business to the extent it keeps you from taking some action.
    Business plans are great, but they are still only theory until you start doing stuff.
    Cheers
    Mark

  • http://twitter.com/MDstinkbugs MarylandStinkBugs

    Great post !!!! I agree 100% The funny thing is that once you try to really make money online you realize that the blog is NOT a business but a watering hole for your tribe. If you build value and trust you can then funnel the tribe towards solutions for their problems and that is what a true business does. I think that for the newbie (I think I’m officially past that stage) the excitement of getting online makes the process a dream and because it is easy to do you can sometimes forget that in business you have to be solving a problem or providing a service which people need.

    You named Apple and Walmart and they absolutely solve problems and service needs. That is the basic framework of business. Thanks again for a super post !

  • http://www.chuckbartok.com Chuck Bartok

    Always appreciate your Candor……
    never should figure out hwy most enthusiasts attack blogging with NO ROADMAP.
    If one EXPECTS to earn for,m a blog all the Planni9ng has to be so directed,
    My political Blog is there as a “self-motivation:” It is not established to Earn Money, but coincidental Books sales and Adsense are steady, by natural occurrence.
    Thank you again for your sharing.

  • Videoproductiontips

    It’s posts like this that make me love you.  :)  
    No BS Dave. 
    Dang dude, I wish like hell I’d met you before I made so many mistakes! 

  • http://yomocoffee.com Morris

    The word “Monetize” is a fairly new word, circa 1880. It is simply taking something that isn’t generating income from a liability into a revenue generating asset. 

    Say you are an accountant. When you work in the accounting department of a company that makes something, you are an expense.  However, if you are an accountant for a company as a “consultant”, your services have been monetized.

    If I need to spend money on the accountant, why can’t I make money from her services too?  You have a resource that you are looking for a way to turn it into a money maker.

    How is this different from figuring out a way to turn your ‘asset’ into a revenue generator?

  • http://davidrisley.com David Risley

    > “Say you are an accountant. When you work in the accounting department of a company that makes something, you are an expense.  However, if you are an accountant for a company as a “consultant”, your services have been monetized.”

    But, that company wouldn’t hire an accountant in the first place unless they were a real business that produced a product other people wanted and paid for.

    I understand that there are those who are trying to turn an asset into a revenue generator. All my point is that, if money was an intention going in, then going in without a plan is rather naive. One either starts a business with potential, or they start a hobby and see what they can do with it later.

  • http://davidrisley.com David Risley

    Don’t worry, I made a ton of mistakes when I started up, too. We all do. :-)

    When I started PCMech.com, I didn’t go into it with business in mind. I had to “monetize”. By the time I started this blog, I had learned my lesson. :-)

  • http://davidrisley.com David Risley

    True. :-)

  • Anonymous

    A well-needed virtual slap in the face! Thank you.

  • http://davidrisley.com David Risley

    I think you’re getting too detailed. :-)

    Basically, monetization as it is usually done by bloggers means that they put a lot of work into building something up with no idea how to make money with it… then they decide money would be nice and they try to figure out how to squeeze it out.

    Whereas, when one opens a business, they have an offer from day 1.

    Its just a matter of intention, so don’t get too worked up over the word itself. :-)

  • http://davidrisley.com David Risley

    Its all good. I did it that way with my first blog, too. :-)

  • http://davidrisley.com David Risley

    An email subscription is not a monetary transaction. That said, any marketer will tell you that a list of buyers is better than a list of freebie seekers.

  • Anthony

    And even that’s coming to an end. One of the big wig VC’s (Fred Wilson) recently said they aren’t interested unless the business / application / etc has a plan for profit built in. He’s not talkin’ adsense. :)

    Oh, there’s still dumb money out there…but it’s gonna get less and less. As it should.

  • http://kkomp.com Shazzalive

    This appears to be, in essence, a discussion of the question: “What came first; the chicken or the egg?” :

    Do you start off with an egg and hope it hatches into a chicken? – Or do you start off with a chick, a young chicken, and nurture it and grow it to a mature chicken in order that it can produce eggs?

    Some eggs don’t hatch, some chickens don’t lay.

    Is there really a right way and a wrong way to go about it?

  • Paul Jun

    I completely agree with you take on this article.

    Find something you love, never give up, and put your heart into it. Rewards come to those who aren’t even expecting it — just comes.

  • http://successonmymind.com Sean Davis

    You know what? You’re a valuable dude, Dave.

    I follow a lot of bloggers in the blogosphere and a learn a lot from each and every one of them. However, you’re the ONLY one that makes me take hardcore action after reading your material. 

    It’s not the way you talk or anything like that. It’s the fact that your approach is so bullshit-less that it’s impossible to misinterpret. This is a business… period. I couldn’t misunderstand if I tried.

    Good deal, man. Between your updates and your Blogger Blueprint, I’ve completely changes the way I go about blogging.

  • http://www.revivalorriots.org Ryan Rhoades

    So now that you’ve made this distinction — then what?

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