Wednesday, August 25, 2004

Blogger tries something new...

In a very interesting move, blogger has made some changes to allow its users to make money with blogger. I knew something was up when they replaced the ads at the top of our blogs with the Blogger navbar. My first reaction was "Neat!" and my second was "How are they going to make money now?" Now I have my answer.

There are three basic kinds of for-profit sites:

  1. Ad-revenue based sites, where the site is funded by ads shown on its pages.
  2. Pay sites, where the site users pay to use the site.
  3. Sales based sites, where the site exists to sell a product or service.
Naturally, these can be combined and modified.

Blogger primarily relies on method one. Now then, how do you increase Ad revenue from a site where all the content is provided by the users? How about paying the users (the content providers) a portion of the revenue they generate, thereby giving them an incentive to increase their readership, from which ad revenue flows? So Blogger's plan is to pay blogger users to blog?

It's so crazy it just might work. I for one will be real interested to see how it works out. Good luck Blogger. But it'll be a while before I start putting ads here.


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