I’ve made money from blogging in many ways: advertising, service provision, information products, affiliate marketing, a membership site, and more. I’ve lived and breathed most of the income-producing ‘models’ one can leverage as a blogger.

I’m walking, talking proof that it is possible to make money from blogging, regardless of what you might have been told.

So why do so many people fail in their quest to make money from blogging? The answer is usually the same: because they approached it from the wrong direction.

Most people jump in at the deep end with grand ambitions, when they would be far better suited by getting their feet wet first, then gradually getting deeper.

In this post I want to give you a framework for making money from your blog. It doesn’t provide all the answers (of course), but it does provide the guidance you need to introduce yourself to making money from blogging in the correct fashion.

With that said, let’s explore each option for making money from blogging, in order of complexity and time-consumption.

Lowest Common Denominator: Advertising

Advertising is arguably the easiest way to make money online. Most beginner bloggers can make a few cents by installing Google AdSense advertisments on their site and attracting a few clicks.

But I do not recommend advertising for a couple of reasons:

1. it devalues your site (no one likes adverts), and
2. it provides a very low return on investment.

To make good money from advertising, you have to generate a huge volume of traffic. It’s an inefficient and labor-intensive way of making money. There are better ways!

Best Option for Beginners: Service Provision

Service provision is such a wonderful way of making money online, but most people turn their noses up at it. After all, it’s a ‘time for money’ deal, and making money online is supposed to be about ‘passive’ income, right?

Well, I invite you to be smarter than people who think that way. Service provision is something you can offer the day you launch your blog, and you can begin looking for clients straight away.

Don’t believe you’ve got anything of value to offer as a service? You’d be surprised. Beyond the usual freelancing routes (like writing and designing), here’s some more unusual suggestions:

1. Know a lot about cheese? Offer your expertise for upper class folks who want to put together beautiful cheese boards.
2. Do you know how to get cheap air tickets? Help businessmen who travel regularly to reduce their air fares (in return for a fee).
3. Are you good with your money? Teach people how to manage their money better.
4. Are you an organized type? Show people how to be more efficient in their working hours.
5. Master knitter? Teach people how to knit via Skype!

I could go on, but I’m sure you get the idea. My point is this: there are things you know how to do that other people would like to be able to do. Which means you can offer your services for a reasonable fee.

Taking the Next Step: Information Products

Service provision also acts as a wonderful foundation for information products (e.g. e-books, PDFs, videos, audiobooks).

If you create a service that people will pay for, there will be many more people willing to pay for a product relating to that service (instead of your service). Here are some information products that could evolve naturally from the above service examples:

1. A PDF containing 20 beautiful cheese board cheese combinations
2. An e-book featuring your most valuable ‘travel hacking’ tips
3. An e-book guide to money management
4. An audio guide to getting organized
5. A video guide to knitting

Taking the Long Road: Affiliate Marketing

Affiliate marketing is simply promoting products in return for a commission. It is very common online; everyone from Amazon to the smallest information product creators offer affiliate programs.

Many people choose this route, but affiliate marketing is tough. It’s also littered with people who sacrifice their soul to make a quick buck. In my opinion, doing so is not worth it.

You need to have a clear plan to make money through affiliate marketing, and it’s not for the faint of heart – especially these days. That said, it is possible; often as an alternative income stream, rather than a considerable source of money alone.

I recommend ‘natural’ affiliate marketing; that is, using affiliate links when you recommend relevant products that you use and love. To go beyond that is to court the ire of your readers; especially if they feel you are pushing a product to make a quick buck.

If you do decide to focus on affiliate marketing, my advice is to be totally up-front. For example, I make 100% clear here on Beginner Blogging that we get a commission from Bluehost if you decide to utilize our free blog installation and setup process. It is, after all, how we can afford to offer the service for free!

Creating an Asset: Membership Sites

Membership sites are often seen as the pinnacle of making money online, as they offer a recurring revenue stream.

On the flip side, membership sites aren’t anything close to a passive income business model. They typically require a lot of ongoing work – every day is a battle to increase (or at least maintain) membership numbers.

Membership sites can become valuable assets, but I see them as something you tackle once you’ve mastered information products, and feel that you have a customer base that could support the work required to run a membership site. It is, after all, a long term commitment.

What Else?

There are other ways to make money indirectly from blogging. You could for example develop an iPhone app, desktop software, or an online app.

It is better to think of blogging as a valuable marketing tool than a business in itself. Advertising and affiliate marketing aside, none of the above income streams are intrinsically linked with blogging.

It’s more about how you leverage a blog’s audience to generate an income, rather than making the blog the direct income producer. It’s advisable to keep that distinction in mind, as the moment you start to think about your readers as dollar signs, you’ll begin alienating them.

What are your thoughts on blog monetization? Share your comments and questions below!

Photo Credit: Philip Taylor