Online ad revenue: what journalists are getting wrong
How much money has your website made you recently?
For all but the lucky ones, the figure is rarely enough to buy a latte, let alone support a family. And for all but the smart ones, the figure is usually from Google Adwords revenue.
Here’s the crunch: journalists running their own websites, whether they’re hyperlocal blogs, online magazines or video sites are getting it wrong. They think there’s only one way to make money from a website – advertising. It’s how newspapers do it, so why should they think any different?
Actually, running a website for profit isn’t about building an audience of millions and raking in the ad revenue. For most of us, even the top niche bloggers, your audience will be in the thousands, not the millions. And that just doesn’t pay.
Doing it right
I was kindly invited to speak London’s prestigious Frontline Club this week, on how to make it as a freelancer in the modern age. Speaking alongside me was the inspiring Deborah Bonello, a journalist who actually has made money from her website, without using ad revenue at all.
In 2007, realising she wasn’t doing the journalism she dreamed of, she packed her bags and moved to Mexico, to carry out what she called “an experiment in digital journalism”. She set up MexicoReporter.com, a website which would be the foundation of her business. Starting life as a free wordpress blog (like this one) Deborah spent months filling it with content, covering stories all over the country.
It became hugely popular with the English speaking expats in Mexico, of which Deborah estimated there are more than a million from the USA alone.
If you ask Deborah how much she made from ad revenue, chances are the amount would be small. But if you ask her how much her website has made her: she’d answer ‘a lot’. By putting loads of free content online she had a strong portfolio to show editors when she approached them with stories. Before long she was getting commissions, and shortly after a retainer from the LA Times.
Now based in London, she’s landed a great gig with the Financial Times. In other words, her website has made her thousands.
And it’s likely she wouldn’t have had the same luck without MexicoReporter.com.
How to really make money from your website
The secret is this: your website is a vehicle for making money elsewhere, not an automatic money making machine on its own.
01. promotion: keep your website regularly updated with examples of your work. And keep producing content, even if it’s without a commission. It pays dividends when you’re offered work or a job off the back of your portfolio. Deborah’s work came because she updated MexicoReporter.com even though she had no-one to pitch to.
02. expertise: maintain a targeted, well promoted, blog which establishes you as an expert in your field. The money comes when you’re offered work because you can prove you know what you’re talking about. I have become both a lecturer and a trainer because of this blog, for example.
03. affiliate: be clever with your links. Affiliate links are dedicated hyperlinks to a product which give you a cut of the money if that product is sold. Reviewing a book, CD or anything else available on Amazon.com? Use an affiliate link to share the revenue. Many companies offer affiliate deals to bloggers.
04. sell: use your website as a vehicle to sell products, targeted around your niche. If you specialise in a certain type of journalism, or Google Analytics tells you your audience are a certain type of person, can you create an online store so they buy direct from you? Tracey Boyer has opened a store on her blog Innovative Interactivity with just that in mind, and Media Storm run a store too.
05. and yes, adverts: but you can be clever with adverts too. The UK based service Addiply created by Rick Waghorn solves some of the problems with Google Ads by offering locally targeted adverts for local based websites. Local bloggers say it’s bringing in results.
A combination of two or more of these things could bring in more money than the Google Ads cheque could. If more journalists looked beyond advertising as their sole business model, we’d move so much faster towards a financial base for the future of journalism.