Everything you wanted to know about how bloggers make money but were afraid to ask
When people ask me what I do and I tell them that I blog and podcast full-time, the next question is almost always “how do you make money?”
In the past, I felt slightly embarrassed, defensive or frustrated by the question because it felt like people were questioning whether my work had any value. (Like please, I question myself enough for the both of us.) However, now I have a much more compassionate understanding that the question comes from (almost always) harmless curiosity. Blogging and being an “influencer” is a completely new kind of career. Of course, people are confused and curious about how someone can make a living from it.
And let’s be real, it’s a fun job. Some parts are really fun and glamorous and some are boring. I just don’t sit around drinking coffee and taking selfies all day…. but it’s also not rocket science.
Let’s Add More Transparency to this Space
I think people have strong opinions because this space can lack transparency. It’s easy to fake it. By design, we only see a tiny slice of someone’s life. Now when people ask, I get excited to talk about how I make money. I think the more transparency there is in this space, the more consumers and other bloggers can navigate it with integrity. I’m an open book because I have nothing to hide.
So today I’m breaking it down. I want to share exactly where the money comes from. My goal with this post is to let my readers know my process so they can more deeply trust that a #sponsored post isn’t the same thing as selling out. I also want to help anyone who wants to blog full time because I know how challenging it can be to turn a blog into a career.
I also want to have honest conversations about money because we need to stop treating money like it’s either evil or the only measure of success. Money is a tool. I love that I can be paid for work I love to. I deserve to be paid. Money is not the reason I do this work, it is the reason I can continue to do this and sustain myself.
I’m writing from my personal experience which means it could relate to others but it might not. I’m definitely not speaking for all bloggers here.
How Do You Make Money?
To answer this question I’ll share the different revenue streams I have right now as a part of my business and what they mean. I’ll also share the average percentage of total income they represent.
Blog, Podcast & Social Media Related Income
Advertising on init4thelongrun.com (4%-17%)
This refers to the ads you see on the website both in the middle of the blog posts, as banners and on the sidebar. In an ideal world, I wouldn’t have any ads on my site because they can be intrusive and annoying. However, its a very stable source of income even if it’s not a large percentage of overall revenue. With so many moving pieces of my business, it’s nice to have at least one consistent stream of income.
Affiliates (1%-4%)
This is by far the smallest income stream and not something I actively focus on. The main product that I use affiliate marketing for is Bluehost which is my blog hosting server. If someone signs up for Bluehost via this blog post I get a small percentage of that transaction.
Blog, Social Media and Podcast Sponsorship (20%-70%)
This is the (veggie) meat and potatoes of my business, at least up to this point. Each partnership is slightly different. The way the process typically works is a brand will reach out. I’ll assess whether it’s a fit. The brand will typically send over a contract and a creative brief. Now that I’m working with a PR agency to help me manage my sponsorships, my manager will review the contract and negotiate on my behalf.
I’ll have a period to test the product and be sure that it’s still a good fit. Then I’ll create the content and send it to the brand for review. If something is sponsored I always indicate if I’ve been paid for the partnership using the hashtags #ad, #sponsored or #partner. Most of the payment terms are 30-60 days which means once I post the content and send the results to the brand, I don’t get paid for another 30 to sixty days.
I’m Paid for My Work, Not My Endorsement
The way I think about being paid for sponsored campaigns is that I’m being paid for the work I do, but not for my endorsement. If I love a product regardless of being paid, I will share it with friends and family and with you. There’s also no amount of money you could pay me to talk about something I didn’t like.
I get paid because each post takes time, effort and skill. I’m also compensated based on the time and effort I’ve put in over the years to build a platform and a community based on trust. I didn’t start making real money from my blog until it was four years old. I’ve turned down campaigns worth thousands of dollars because I didn’t truly love the product. At the moment it can be a tough choice but I’ve never regretted turning down money if it wasn’t a good fit.
And in full transparency, I’ve also worked with brands where I love the product but the campaign falls flat because the brand will add too many terms and change my language. This can be really frustrating because I want to share in a way that I think will resonate with you but at the end of the day it ends up sounding like a generic ad. I’ve learned through experience how important it is to advocate for speaking in your own language.
Freelance Work
Photography, Workshops & Consulting (10%-50%)
In addition to my blog and social media channels, I also work for myself as a freelance photographer, consulting with small businesses on instagram strategy and I host brand building workshops. This income is pretty seasonal but it’s a really fun part of my job that I love. I typically shoot small weddings, content for brands and bloggers, events, portraits, and engagement sessions. I’d love to keep expanding this part of my business because it’s so fun and creatively rewarding.
Products
the Presets (0%-30%)
Last October, I launched my first product the @init4thelongrunblog presets for Lightroom mobile. I’m super proud of these and humbled by the response. It took a lot of work up front to create them, and I’m hoping to create more systems and marketing plans that help me keep them top of mind. I’m planning to launch more presets and hopefully more products digital and tangible in the future.
What it’s Like Working with a Manager
This past fall, I started working with RPR a PR agency based out of Boston. RPR handles all the contracts, communication and invoicing for any of my sponsored work. They are paid via commission which means they get a percentage of the revenue from sponsored collaborations. This was one of the best choices I’ve made for my business. It’s freed up so much of the back and forth that happens with brands. It also really helps to have someone advocating for your worth on your behalf. While I love my experience working with a management team I definitely don’t think it’s essential especially if you’re starting out.
Things I’ve Learned About Self Employment over the Past 2 1/2 years
In a lot of ways, I believe I’ve been training for this kind of job my whole life. I grew up on an island where the economy is incredibly seasonal. So saving money and getting used to an irregular income has been a part of my life since I started working at 14. I’ve always loved working for myself since the days of selling my creations at craft fairs.
Out of college, I struggled at my first job because I got bored of having a consistent salary and no seasonality to the work. Where were the tips? I craved a busy and slow season. I love the ebb and flow that self-employment provides.
Here are a couple things I’ve learned from working for myself:
Money is Irregular – Always be Working on Your Emergency Fund
Because your income won’t be the same every month, it’s important to create systems that make saving money easy. I have several savings accounts that automatically take money out every month so I don’t have to think about it. I’m also building up my emergency fund. My goal is to have at least six months of expenses saved up. I’m not there yet but I know I’ll be grateful if things ever do change to have that cushion.
Keep Things Separate
If you’re starting out on your blogging journey and have started making money, open a separate banking account to keep personal and business finances separate. Unlike being a w2 employee, when you’re a contractor your taxes are not deducted from your income. When you work for yourself, even if it’s a side hustle, it’s important to track what you’re making and save money come tax time. I highly recommend working with an accountant who can help you create the systems and help you figure out your tax situation.
Now I pay myself a monthly salary from my business account, save a percentage of income into savings account for taxes and keep the rest in my business account. Any personal expenses come out of my personal account. Again this is what works for me right now. But I wish I had known this sooner.
Don’t Forget to File Quarterly Taxes and Save Every Month for Taxes
An accountant will be able to help you figure out how to pay your quarterly taxes so that you won’t be penalized and you won’t have a giant tax bill at the end of the year.
When it Rains it Pours
Something I’ve found challenging at times is that often when I’m busy I’m REALLY busy and when I’m slow I’m REALLY slow. I’ve burned myself out quite a few times trying to do it all because I was afraid that the next “drought” is coming. This is why building an emergency fund is so important to me so that I don’t do this so often.
It can get extra tricky timing sponsored posts because I don’t love having more than two a week. There have been times when it all just lines up so that I feel like a walking advertisement even though I love all the products I’m talking about. I’m still figuring it out.
It can also be challenging in the slower times to not feel anxious that you’re not doing enough. It’s the nature of the job that sometimes the most productive thing you can do is rest.
When You Do What You Love… It’s Really Hard to Stop Working
Everyone knows the saying “when you do what you love you’ll never work another day in your life.” Well, yeah…. but no. I love what I do. It’s a really fun job. I feel super lucky and also guilty at times that I get to do this for work. At the same time, I work weird hours and I’m always on. It’s no one else’s fault. Part of being on social media is feeling this pull of living two lives. Both of them are me, but it can be hard to put away work when you’re your own boss. My to-do list will never be done. That’s ok. But I’m learning that no one else will give me the permission to stop working but me.
You Only Get the Money You Ask For
While it’s grown in popularity, the blogger influencer space is still the wild west. There are no standard rates that influencers charge. In general. I think a lot of influencers are not charging enough money. Many factors go into what to charge including the quality of your content, your audience size, your engagement levels, the kind of audience, the brand you’re working with and more. I’ve learned that the only time I get a raise is when I raise my prices. No one will give you that permission. While my audience hasn’t exploded in the last three years I now charge triple what I did in 2017.
Self-Employment Can be Lonely
Something I’ve been trying to talk about more is the fact that working for yourself can be really lonely. I miss having coworkers. While I love being my own boss, there’s something nice about being directed by someone else. I can get tired of always figuring it out myself. Again, I feel like I was built for this and still I get fatigued by being boss lady.
I hope this helps anyone who’s curious about either blogging as a career, self-employment or what it’s really like to “do what you love” for work.
The post How I Make Money as a Blogger, Influencer & Freelancer appeared first on In it for the Long Run.
from In it for the Long Run http://bit.ly/2RvrAc4
No comments:
Post a Comment