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Why blogging for money will not make you rich

Blogging for money isn't as hard as some jobs, but it's usually profitless

Blogging for money isn't as hard as some jobs, but it's usually profitless

(Image: WRI)

Like the vast majority of the 100 million bloggers in the world, I earn less than a dollar a day from my own blogs.

That’s an average figure. Some days I earn more, many less. But it currently averages out to about a dollar a day. Blogging for money is a terrible idea.

Blogging is about as profitable as subsistence farming

Half the world’s poor live on a dollar a day or less, and they make their money in more brutal and uncomfortable ways than those blogging for money.

Bloggers have to worry about:

  • Inconsistent traffic
  • Winner-takes-all competition
  • Unreliable monetization

The world’s poorest workers have to worry about:

  • Physical exhaustion
  • Hand-to-mouth employment
  • Physical violence
  • Deadly working conditions.

Many would be delighted to earn a dollar sitting at a Mac in their lunch hour, moaning about the blogosphere. So let’s be clear: I’m in no way equating bloggers’ hardship with the suffering of the truly poor.

What interests me is why millions of well-off people would blog to earn as little as a labourer in a rice paddy?

Blogging for money is hard work

Many people blog to share their thoughts, not to earn money. This post isn’t about them. I’m talking about those hundreds of thousands of us who read Darren Rowse’s ProBlogger, who hope to make money from our blogs.

We write decent content, position and promote it, and still find blogging for money sucks. Why do we do it? Given the minimum wage in the US, UK, and Europe, blogging is about the worse way someone could try to make some extra money. Yet it’s perhaps the most discussed and attempted.

Most half-decent bloggers will have jobs paying 10-100 times more per hour than what their blog pays. If they’re blogging for money, why don’t they just work overtime or get a side job? Why are they content to be paid the same as a Somalian sharecropper?

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Dilbert explains stock investing

Dilbert explains stock market investing (click to expand)

Dilbert explains stock market investing (click to expand)

The incomparable Scott Adams (via The Big Picture)

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Subprime silliness, nailed by two comedians back in 2007. (As opposed to being explained by the comedians who came up with sub-prime and were still defending it back then.)

For non-UK readers, the chaps in the video are the always excellent Fortune and Bird, who often speak more the truth in their rambling obfuscations. MBEs ahoy, I say!

The BBC has ran a more serious explanation of subprime mortgages in easy-to-get diagram form, if you’d like to know more. Or go back to the funnies with this Seven Sins sub-prime meltdown summary.

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The Barclays share price and the credit crunch

Down, down, down: Barclays from 23/2/07 to 11/11/08

Going down: Barclays' share price from Feb '07 to Nov '08

So about two years ago I got talking to a friend’s mother who had inherited Barclays shares, because I am the sort of nerdy person who talks about shares at dinner parties. She had no thoughts on the bank’s future. She simply owned a bit of it.

I suggested to my friend that she might nudge her mother towards diversifying out of Barclays. Not because of any worries about the share price, but because:

  • Her mother clearly wasn’t following the company’s business, and if you’re crazy enough to own just one share you really ought to watch the business like a hawk.
  • Even though I don’t give individual advice about shares, it would surely be cruel not to cough and mention that having all your shares in one company, even one as ancient as Barclays, is a rather risky strategy. Banks go bust.

Where did all her money go?

Fast-forward to this week, when I was asked by my friend why the Barclays share price was all but missing a zero off the end. Sure, she’d seen some noisy financial news on the television, but what did this have to do with her shares?

Argh! Where to even start?

Rather than changing the subject, which any normal person would have done, being a share nerd I asked whether any of the Barclays shares had ever been diversified into the wider index. They hadn’t. And then with a heavy heart got to work creating the chart above, and the explanation you’ll find below.
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