Until recently, there were two main kinds of blogs. Most of the 57m blogs in existence are personal diaries that happen to be online. These blogs have tiny audiences and make no effort to sell advertising. Services such as Google's AdSense, which places text advertisements on blogs and generates a few cents per mouse click, might bring in some spare change. But according to Pew, an American research organisation, only 7% of bloggers say their main motivation is to make money.I like this way of breaking into 3 categories. Very similar to the Long Tail of Book Publishing. I wonder how many 'niche magazines' and 'mom-and-pop' blogs there will be.
The second main kind of blogs are, in effect, niche magazines that choose to publish in a blog format. These blogs are explicitly run as businesses, with paid staff doing the writing and sales departments selling advertising. The best example is Gawker Media, a stable of blogs that includes Gawker, a New York gossip site, and Gizmodo, a blog devoted to gadgets. Collectively its 14 blogs get 60m page views a month. Such blogs are “the most profitable media business today,” says Jason Calacanis, who runs Weblogs Inc, another stable of popular blogs that he sold to AOL, the web arm of Time Warner, a year ago. His sites, including Engadget, another gadget blog, are “an eight-figure-a-year business” with negligible distribution costs compared with the huge printing and shipping bills of traditional magazines.
Now, however, a third category is emerging: the mom-and-pop blog. “In the old days, we used to be called newsletter publishers,” says Om Malik, a technology writer who quit his job at Business 2.0 magazine in June to work full-time on his blog, GigaOm. He has hired two other writers, and his blog now attracts about 50,000 readers a day, generating “tens of thousands” in monthly revenues. Costs, including salaries, are around $20,000 a month.
via The Economist