One of my favorite tasks, as an administrative assistant, was measuring ROI. ROI is Return On Investment. This is the process in which you take how much money spent and compare it to how much return you’re getting. ROI for bloggers would measure a lot of different things, so let’s chat about the question, “Is Blogging Worth It?” today as based on one simple thing, ROI.
My Background with ROI
The job I held allowed me the privilege to track marketing dollars spent to fill positions for the employer we hired for. I worked as an internal employee for a temp agency. Whenever the person in charge of marketing spent money to place an ad in the paper, purchase signs for marketing, or money was spent to reserve event space to promote the company, I would get the receipts.
As with most jobs, I tend to attract tasks like this because I love running analysis on numbers. It’s my favorite thing to do. I would place the data into a spreadsheet for dollars spent on marketing. At the end of each month, I would run a report that showed each place we spent money on and how many people applied to jobs with that referral code. A fancy way of saying, “I went into our system and ran a report that lists candidates based on their REF code in the system”.
Getting To The ROI Point
I would take the REF code report, place numbers into the marketing spreadsheet. I had a formula that would calculate the ROI based on each place we spent money compared to how many candidates applied. This ROI report was a useful way to tell this company where they should stop paying for marketing and where they should start spending more on marketing.
This ROI report is something every business person should be doing, and yes, that means YOU as a blogger should be measuring your ROI to find out which area to spend the most of your money, time and dedication as it pertains to making money with your blog.
Did I say how much I LOVE this type of stuff? Okay, so now that I’m done sharing my background with ROI as it pertains to a business outside of the home, I’m going to share some ways you can evaluate ROI in your blogging world.
Now that Quarter 4 is here, it’s time to refocus and prepare for a productive New Year. Find out what your ROI is so that you can make 2020 the best year of blogging ever!
How to Measure ROI in Blogging
Blogging is a lot trickier to measure ROI because you don’t necessarily make instant money with every piece of blog content you publish. ROI in blogging is more about tracking end-user actions as a means to further your visits which will ultimately lead to more paid gigs, sponsored content, and ad revenue earnings.
Lucky for you, this is my favorite thing to do! I’m going to try to break down some instructions for you so that you can start measuring your ROI in blogging.
Know Your Goals
My blogging goals and your blogging goals may not be the same. That’s okay! All that matters is that you know what your goals are. Do you want to review ROI to make more money blogging or are you simply trying to increase engagement or traffic for future revenue? This goal will ultimately determine what you’re measuring when peeking at ROI.
I use Google Analytics and Google Webmaster Tools for my Brandy Ellen Writes blog. This helps me review the most popular keywords that bring organic traffic to my site, where my traffic is predominately coming from, and how many visitors are actually checking out my site. Another piece of data that matters is your bounce rate. All of this data can be found between both Google Analytics and Google Webmaster Tools.
Create a Google Spreadsheet
I am a spreadsheet addict, but I personally feel that the spreadsheet design works best, especially if you can create formulas to automatically calculate your ROI numbers. Within this “blogging ROI spreadsheet” jot down any time and money spent in each specific area. This could be time spent promoting your blog content on social media, funds spent in boosting social media posts or whatever else you may have going on for marketing efforts.
When measuring your blog ROI it’s important to take into consideration time, not just money, invested.
Figured Out Hourly Rate
The spreadsheet you created to monitor time and money spent as well as traffic and revenue earned will help you figure out an approximate hourly rate you’ve earned. This hourly rate is what will determine if blogging is even worth it. I personally like to review blogging ROI every month, since week to week can fluctuate with income so much.
Blogging ROI Option 1 = 30 Days Money Earned/30 Days Time Invested Blogging ROI Option 2 = 30 Days Ad Money Spent/30 Days Traffic Received
Let me be very clear here, blogging is a business. This means you will need to spend more hours building the brand, getting traffic to ultimately have a money-making blog. Take into consideration the age of your blog, whether this is your primary income and if it’s helping or hurting the family’s financial situation. In my opinion, if your blog isn’t making enough money and it’s harming the financial stability of your family then it’s more of a hobby right now, not quite a business.
No matter what your blog ROI is, every person is different in their goals of blogging. This measurement of ROI is all about determining if you’re achieving the goals you set out to achieve in your blogging career.
Thank you for reading this far! If you want a step by step tutorial on how to measure your blog ROI, this post from Scripted seems to feature a very specific process to help guide you forward in measuring your blog content ROI.