If you’re a blogger and aren’t sure if you need to pay taxes, it will depend on whether you’re making money with your blog and whether you consider your blog a business or a hobby. I received the question below and Amanda Henson of High Impact Mom researched the answer and wrote it up.

Dear Blogging Basics 101:
I am building a blog. I thought it would be no big deal to put up a few affiliate banners and make a little spending money, but I didn’t realize that even the smallest income must be reported. Is that correct? I know nothing about how to report my income, or which forms to use. Can you explain how things differ for bloggers (hobby or business?)? Can you recommend a book or article or resource for me? Specifically, if I make less than $600 per year, do I have to file?

Answer: Congratulations on building a blog and great question. Let’s begin by discussing the differences between hobby and business blogging. If you have been lucky enough to make a profit from your blog, or small business, in three out of the last five years the Internal Revenue Service (IRS) considers it a business rather than a hobby. Even more precisely, if you have treated your blog like a business by regularly working on it with the purpose of making a profit, the IRS would also deem this a business and as such would also qualify for business deductions. If your blog is considered a business and you are filing as self-employed, you are also expected to pay self-employment taxes quarterly rather than at filing time.

Wondering what you need to claim? According to the IRS, taxable income is defined as all “employee wages and fringe benefits, and [all] income from bartering, partnerships, S corporations, and royalties.” The blogger must claim all review items, blog conference sponsorships, ad purchases and generally anything you are given that has value. The IRS also states “[y]ou have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions.”

As a business you are also able to deduct certain expenses and losses, though it should be noted that it is not generally a good idea for your expenses to outweigh your income outside of any first year start-losses. In order to make sure you’re taking advantage of as many deductions as you legitimately qualify for, I recommend seeking professional advice from an accountant or tax professional.

The long list of possible blogging tax deductions includes:

• Blog Conference Fees
• Hotel costs for business trips
• Mileage for business trips
• Webinars
• Industry books
• Website hosting fees
• Website design
• Jump drives
• Graphic design fees
• Business cards, letterhead

To learn more about tax law and how it affects bloggers, visit these articles:

• Hobby Versus Business — A Significant Tax Difference via Small Business Legal Blog
• 7 Things That Every Blogger Should Know About Tax[es] via ProBlogger
• How to Avoid Legal Trouble, Income Tax Fines, and Penalties as a Blogger via ProBlogger
• What is Taxable and Nontaxable Income? via IRS
• Self-Employed Individuals Tax Center via IRS
• 101 Tax deductions for bloggers and freelancers via Wisebread

photo credit: Dave Dugdale

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Here are my tips for e-books bloggers need to read.

Do-It-Yourself Blog Critique

Author: Melissa Culbertson
Price: Regularly $14, but on sale for Cyber Monday for $10.50!

Melissa has made a name for herself by doing blog critiques at MomComm.com. She was receiving so many requests for help that she decided to create an e-book. Learn how to engage your audience via strong navigation, design, and content — Melissa will show you how. She’s having a terrific deal on her book for Cyber Monday, so now is the perfect time to buy. The book is usually $14, but for Cyber Monday you can pick it up for you or a blogging friend for $10.50! Just use code CYBERAWESOME on November 28, 2011 before midnight and you’ll get the deal.

Mom Blog SEO

Author: Kelby Carr
Price: $19.99

Search engine traffic is vital to the success of your blog. Learn how to set up your blog so it’s as SEO friendly as possible and find and use tools that will help you optimize your content and site so the search engine bots can find you. Kelby explains the ins and outs of basic SEO and how it affects the success of your blog. This e-book isn’t just for mom bloggers! Regardless of your niche, you’ll be able to use the information in this e-book to improve your SEO rankings and traffic.

31 Days to Build a Better Blog

Author: Darren Rowse
Price: $22.49

This book is one of the best-selling e-books online, helping over 19,000 bloggers build a better blog. Darren recently revamped this e-book and every day in the challenge has been updated for 2012, most days have new further reading and case studies, the workbook now has Twitter integration, and the e-book has seven bonus days (effectively giving you 38 days of content)! So even if your blogger already has the book, they’ll appreciate receiving the updated version.

30 Days to Make & Sell a Fabulous Ebook

Author: Ang England
Price: $11.99

One of the best and easiest ways to earn money from your blog is to create your own product to sell. When you’re a blogger, that usually means creating an e-book. Ang England is a successful e-book publisher and she’s sharing her experience and secrets with you so you can start creating your own e-books and establish a new income stream from your blog. The best thing about e-books is that, after they’re written, they are largely a passive source of income.

Please note that each of these links is an affiliate link. 

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As the mother of four little ones, with one on the way, I am a huge fan of working smarter, not harder. One of the benefits of writing an ebook is the ability to create an additional product from work and research you’ve already used elsewhere. I love re-purposing high-quality content and presenting it in more than one format. With that in mind, I want to give you some tips for planning blog posts with the goal of eventually creating an ebook.

Brainstorm Article and Post Series

I’m a huge fan of the brainstorming process. When I first began writing web content for a particular content site I took a 50 cent poster board from Wal-Mart and filled it with idea after idea after idea. Two years and three ebooks later, that brainstorm session was actually covering the mortgage payment when I took maternity leave with my third child.

Planning articles in series around a particular topic meant that when I wanted to write an ebook, I could tell what series my readers were responding to and help predict which specific topic would sell well. It also meant that I had a huge head start on research and writing when it came time to put the book together.

Editorial Calendar

I love having an editorial calendar in place – even if just in general terms – so that I know where I’m heading with my writing goals. When I want to write about a particular topic, adding it to my calendar greatly increases the chances of that project actually coming to fruition! Otherwise, I’m too easily sidetracked by the immediate needs of my sites and jobs and family and….you get the idea. You’re probably in the same boat. An editorial calendar can help.

Scheduling Posts in Advance

When I launch a new ebook, I like to write a few posts on a related topic. Then you can schedule them out in advance and create a sustained buzz over your ebook. Alternatively, you can work on producing your ebook while your posts are still being posted to your blog. When I was working on the Making Money Blogging ebook, I had pre-written several blog posts in one day so that I could take awhile to put the book together and work on marketing it without abandoning my audience.

Angela England is a problogger, freelance writer, and author of 30 Days to Make and Sell a Fabulous Ebook. Find her on Twitter and at her blog, angengland.com.

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Five Best Business Practices

So what are these lofty expectations I have for business professionals? They probably aren’t that different from yours, but it’s all in the execution. My advice to anyone who wants to establish themselves as the go-to person for a niche (blogging or otherwise) is the following:

1. Set reasonable expectations. If you’re dealing with multiple clients and your business is growing, you’ll find that just doing things as they come up will win you no friends. You’ll be pulled in too many directions, won’t finish jobs to the best of your ability (because you’re just trying to cross things off your list to get to the next one), and you’ll over-commit yourself. When you can’t come through, your client is angry, you’re frustrated, and no one’s happy. You can avoid this whole mess by simply taking on as much as you can handle and no more. Will you turn work away? You might. You’ll also have a working schedule you can manage so you’ll be able to set strong boundaries (e.g., I only work between normal business hours) and reasonable expectations (e.g., since I work from home, I produce about twice as much as I would in an office setting — I’ll have your project done Tuesday instead of Thursday).
2. Meet those expectations. Once you’ve set expectations, you must meet them. That’s why it’s so important to only take on what you can manage and seriously consider what you can deliver before you agree to deliver it. If something comes up, let your client know immediately how this will impact her project and how you’re going to handle it.
3. Don’t give excuses. Unless someone has died (and, sadly, that happens), your client doesn’t care why you’re late with a deadline — especially if you’re late because you were working on another client you thought was more fun or more important. Oh, yes. I’ve been given the “I was working 18-hour days over here so I couldn’t work on your stuff!” If you think telling your client how hard you’re working for someone else is going to inspire confidence, you’re mistaken. What it tells your client is that she’s not as important and you don’t see her project as a big deal.
4. Communicate clearly. Regardless of what the project is, you should always be completely clear with your client about how things are progressing and what you can (and can’t) deliver. Confirm action items, deliverables, and dates in writing. You should set up a list of dates for specific action items so both you and your client know what milestones are being met. It’s also important to explain to your client that if she misses deadlines for anything she’s responsible for giving to you, then your due date moves as well. If you have a full queue, then you’ll have to be very clear about the fact that, if she doesn’t provide you with the necessary items when you need them, she may end up at the back of the line because you have a strict project calendar juggling many clients. Which brings me to #5.
5. Make your client feel like they’re your only client. This is hard and can be frustrating because you probably don’t have just one client. However, if you haven’t taken on more than you can handle (or delegate), and you’ve set up firm boundaries and expectations, you’ll be fine. If your clients know you have reasonable expectations of them and are firm with your boundaries, they’ll respect that you aren’t at their beck and call and will be more likely to respect your time.

The Tools You Need to Succeed

Now that you’re committed to setting and meeting reasonable expectations (and your clients know what you expect from them), how do you make it work? Two of my favorite tools are mind mapping and an editorial calendar. The first allows you to brainstorm and collaborate so your ideas are the best they can be; the second allows you to assign those dazzling plans to a schedule that keeps you on track, promotes productivity (because you know what’s coming up and can plan accordingly), and allows you to see if you have time to take on any other projects.

Mind Mapping

In seventh grade I had to write my first outline for a research paper. Up until then I’d been writing and re-writing my own stories and papers in a way that made sense to me. The trouble was that I was doing a lot of re-writing because as I would read my creations, they didn’t always flow (have I mentioned that even from an early age I liked things in a specific order?). I had no idea what an outline was or that I could use it to ensure my first try would be more flow-y. Fast forward to today and basic outlines have evolved into mind mapping. Mind mapping is a visual way of structuring your projects and keeping track of the tasks associated with it. You can move things around, add or delete items as needed, and even use your mind map as a presentation. With so many online options, you can use mind mapping software for your individual projects as well as collaborative ventures. If you’re ready to try out some mind mapping to see if it can enhance your creativity (or at least just help you organize it), check out 15 Great Mind Mapping Tools and Apps or Mind Mapping Tools for Designers and Why It’s Important. Once you have your mind maps in place, you can transfer the final product or schedule to your editorial calendar.

Editorial Calendar

I’m a firm believer in using an editorial calendar to tame the chaos of your business life. An editorial calendar is simply assigning publishing dates for articles (or deadlines for projects, tasks, or milestones). For some people setting deadlines for themselves ensures productivity (and others, as I can attest, may find it limiting). Regardless of which camp you fall into, seeing your deadlines, milestones, and tasks  on the calendar will help you quickly determine if you can reasonably take on a new client or project. If deadlines help you meet a goal, you’ll love the editorial calendar. If deadlines feel like soul-sucking creativity killers, use the calendar as a suggestion and rearrange it as necessary. You’ll likely find that just a little pre-planning makes your business run more smoothly (or at least keeps track of your brilliant ideas).

If you’re a blogger, a well-implemented editorial calendar allows you to see at a glance a running list of topics you want to write about and how those topics converge on your blog. If you notice you have several posts on a topic but they aren’t scheduled close together, you may want to rearrange the flow so those articles form a series instead of just one-off posts here or there. An Editorial Calendar Will Keep You Sane is my take on how I used an editorial calendar to keep track of three blogs and weekly column at another blog. I’ve pared down a little (I have just one blog now), but I still find that an editorial calendar (whether on- or offline) helps me focus my writing efforts and plan my weeks. Blogging for Web Designers: Editorial Calendars and Style Guides via Smashing Magazine is full of excellent advice including checklists for getting started with an editorial calendar and setting a schedule that works for you (even if you’re not a web designer). And if you’re a WordPress.org user, you’re super-duper lucky because there’s an editorial calendar plug-in that you will fall in love with.

Do a Good Job

Overall, it’s not hard to do a really good job. If you value quality work, you’ll know what it takes to produce it. You’ll understand that clients want that quality and will choose you over the other guy even if you’re more expensive (because, let’s face it, there’s a reason you’re more expensive). I’m surprised more people aren’t doing quality work and I’m even more surprised that clients are putting up with it.

What I’d like to know now is how are you ensuring you’re the professional authority in your niche? What tools are you using to help you?

photo credit: Jeff Bauche._.·´¯)

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• The Private Ad Sales Model: 9 Tips from Design Mom On Selling Your Own Blog Advertising via ABDPBT. Anna wrote a series about monetizing mommy blogs (though, the information can be tweaked to fit your niche). She’s sharing some good information and highlighting one of my favorite bloggers, Design Mom. Win-win!

• 22 Ways to Find Advertisers for Your Web Site via Daily Blog Tips. Daniel lists some very basic, common sense ideas for letting your readers know you accept advertising at your blog. it’s a place to start if you’re finally ready to sell ads, but aren’t sure how to do that.

• Are You Choosing the BEST Affiliate Banners? via Net Profits Today. Rosalind explains why some advertisements have higher click-through rates than others and how to make the most of your ad banners.

• Your Blog’s Media Kit via Blogging Basics 101. If you’re going to be selling advertising, you’ll need a media kit that explains who you are, what you’re doing, and why companies need to invest in you. I give you some tips and point you to some templates to help you get started.

• Advertising Rates for Mom Blogs: How Much Should I Charge? via Mom Bloggers Club. Jennifer shares several scenarios with traffic, niche, etc. to help you determine a reasonable rate when selling your own advertising.

photo credit: Billie Hara

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Last week, in the discussion about whether to use full or partial RSS feeds, one of the arguments for partial RSS feeds was that bloggers wanted to entice their readers to click over to their site so they (the blogger) would have more pageviews and thus more revenue for their traffic-based ads. That conversation leads directly to this week’s topic: how can you include ads in your RSS feeds? (The discussion of whether you should include ads within feeds can take place in the comments; I’m just giving you options.)

Types of Advertisements for RSS Feeds

When you choose to put ads on your blog(s), there are a few options. The two most widely-used types of advertisements are traffic-based ads (e.g., BlogHer Ads) and pay-per-click ads (like Google AdSense). If you are using traffic-based ads, you’re paid based on the number of pageviews your blog receives, not how many times readers click the ads. If you’re using pay-per-click ads, it doesn’t matter how many pageviews you have, you’re only paid if a reader clicks on the ad.

If you choose to include ads in your RSS feeds, the options currently available are mostly context-based pay-per-click ads resembling the Google AdSense model. This is a list of some of the companies that can help you monetize your RSS feed:

• Google AdSense for Feeds provides context-based ads. Since Google owns Feedburner, you can easily include Google AdSense inside your feed if you’re currently signed up with Feedburner. Just log in to your Feedburner account, click the Monetize tab, and follow the directions.
• CrispAds offers context-based ads and will let you choose what ads are included with your content.
• Feedvertising uses text-link ads. You have the option of approving or denying specific ads.
• Pheedo Inc. allows you to control the keyword filters and specific advertisements being shown in your feed. Here are some examples of Pheedo ads within feeds. You can use Pheedo with your Feedburner feed.

What to Consider Before Including Ads in Your RSS Feed

It’s tempting to include ads within your feed(s) because it’s a potential revenue stream. However, I strongly encourage you to consider three things before you make your final decision:

• Are the ads being served relevant to your blog’s content? If you write a blog about organically grown food are your contextually-based ads coming up with sugary breakfast cereal advertisements? If so, your audience may be put off by the ads and unsubscribe to your blog. Or, worse, your credibility is called into question.
• How many ads will appear within the feed? Readers don’t like it when they can’t find the content they’re looking for because it’s buried between ads. When ads take over your RSS feed (or your blog, for that matter), you may be losing the focus of your blog. You’re almost certainly ticking off your readers.
• Are the ads clearly marked so readers don’t confuse ads with blog content? Readers don’t appreciate being duped (see the bit about credibility above). Beyond that, though, with the new FTC guidelines in place, as a blogger, you have an obligation to make sure your content and ads are clearly separated and aren’t confused.

What Do You Think?

Advertising on blogs is fairly common these days, but, all in all, RSS feed adversing really hasn’t taken off. I don’t know whether that’s from

• a lack of advertising options within feeds,
• the fact that most blogs using RSS ads are making very little money
• the perception that it may be difficult to set up feeds to serve the ads, or
• bloggers simply don’t consider RSS as another revenue stream.

As a blogger, I can certainly understand the draw of adding another revenue source to blogging, but as a reader, I’m not sure I’m excited about that possibility. Although I read much of my news from within my feed reader (at least cursorily), I do click over to the actual site to read more thoroughly and comment. If my feeds are cluttered with ads, I may opt to stop reading a blog completely rather than wade through the distraction of ads.

What do you think? Would you include ads within your RSS feed? Do you mind reading feeds from blogs that include ads with the RSS?

Read the entire RSS series on Blogging Basics 101:

• Part 1: How do I burn my blog’s RSS feed with Feedburner?
• Part 2: How do I set up my blog’s RSS feed via e-mail?
• Part 3: How do I find and install a custom RSS button on my blog?
• Part 4: Should I offer a full or partial RSS feed to my readers?
• Part 5: How do I include advertisements in my RSS feed?

photo credit: larskflem

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The first thing you’ll most likely reach for as you prepare your 2009 taxes are tax forms. You need your W-2 forms from any employers and 1099s from any companies you worked with that paid you. If the company does not send you a 1099 by the end of January, you should contact them to see when you can expect that information from them (note that if they didn’t pay you $600 or more, they are not required to send a 1099, but you are still required to report the income). Keep in mind that if you went on any marketing trips this year, those companies should provide you with a 1099. Even though you may not have been paid monetarily for those trips, the flight, hotel, food, etc. is all considered income and you have to pay taxes on it. In her article Taxes for Bloggers, Mrs. Micah provides a list of items (in addition to your W-2s and 1099s) you’ll want to gather before going to your tax professional. She also provides links to handy spreadsheets that help you track your income over the year and a deductions spreadsheet that lists possible tax deductions as they relate to your blogging business.

If you have questions about bloggging and taxes, the most complete resource I’ve found is Tax Girl written and maintained by Kelly Phillips Erb. Here are a few of the articles that specifically address how your blogging career affects your taxes:

• Ask the taxgirl: When is it income?
• Ask the taxgirl: Deductions
• Problogger guest post: 7 Things that Every Blogger Should Know About Tax
• Problogger guest post: 46 Tax Deductions that Bloggers Often Overlook

In 3 Ways to Reduce Your Freelance Writing Taxes and Help Yourself, Thursday Bram explains why freelancers (and bloggers) may want to consider funding your own retirement and health insurance options. She writes, “One of the reasons employers can afford to offer benefits like health insurance and retirement plans to their employees is because there are tax benefits available when they do so. They’ll have to spend money either way — the question is whether they spend that money on benefits for employees or on taxes. The same is true for freelancers.”

Mom in the City’s article Mrs. CPA Answers Your Questions Regarding Blogging and Taxes tackles issues like

• whether you’re conducting a business or a hobby (and why it matters to the IRS)
• whether you need to pay taxes on goods or services you receive
• what to do if a company doesn’t send a 1099
• whether you need to report giveaways
• how to handle donations

Taxes, as they say, are inevitable. Knowing what you are and aren’t responsible for or what you can and can’t deduct can be confusing. Do your research and consult a tax professional to avoid any problems down the road.

Additional articles on bloggers and taxes:

• 7 Year-End Tax Tips by Karin Mueller via Entrepreneur.
• June Walker: Tax & Financial Advisor to the Self-Employed
• Top Tips on How to Avoid an IRS Audit by Cody via Your Frugality Advice
• Year-End Tax Tips for Freelance Writing Businesses by Bob Younce via Business Tips for Writers

A version of this article was cross-posted at BlogHer.com.

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What do the new FTC guidelines expect from bloggers?

The newest FTC guidelines require bloggers to disclose any relationship with an advertiser and to make “verifiable” claims. Relationships with advertisers include any compensation received in exchange for a review–including receiving a free product. As BlogHer.com’s own Liz Gumbinner has said, “The intent of the FTC guidelines is to protect consumers from deceptive marketing practices.”

Richard Cleland is Assistant Director of Advertising Practices at the FTC. He’s been providing interviews around the country and clarifying the FTC’s expectations for bloggers and disclosure. In a phone interview with Ed Champion of Reluctant Habits, Cleland told Champion that “the FTC’s main criteria is the degree of relationship between the advertiser and the blogger. . .If there’s an expectation that you’re going to write a positive review, then there should be a disclosure.”

However, the FTC does acknowledge that some cases are different from others. In an interview with Virginia Prescott at New Hampshire Public Radio, Cleland had this to say about receiving sample products versus being paid for a review:

“That’s going to depend on the circumstances. If we’re talking about getting one free product or something sent to you and you happen to write about it on your blog, that’s not the type of relationship that has to be disclosed. But if you’re part of a network and you’re consistently receiving products to test and blog about, then that raises the implication that these gifts are quid pro quo and that’s why you’re writing the positive reviews.”

In answer to Ms. Prescott’s question about how the FTC will hold bloggers accountable for false claims, Cleland said, “It’s going to be on a case-by-case basis. It’s going to have to be a situation where it’s actually justified, the extent of the injury is such that it justifies using our resources to look at the possibility of an enforcement action.”

It’s worth noting that those of us with Amazon Affiliate links are expected to disclose those as well. Champion says Cleland “didn’t see any particular problem with a book review appearing on a blog, but only if there wasn’t a corresponding Amazon Affiliates link or an advertisement for the book.” Though that example is specific to books, it could apply to any product linked to an affiliate.

Do the new guidelines include Facebook and Twitter?

Yes. Many bloggers type paid tweets and/or become Facebook fans of certain products, then share those tweets and fan pages with their friends. Just because the advertising relationship is outside a blog, it’s still a relationship and the blogger is still compensated–the rule for disclosure and true testimonials applies. Caroline McCarthy at Cnet gives this example of how the FTC guidelines apply to a blogger (or, in this example, a celebrity) on Facebook:

“[A] celebrity or other prominent figure with loads of friends on Facebook receives free hotel stays from Hotel Chain X in exchange for running Hotel Chain X ads on his or her blog. If that person then signs up as a Facebook fan of Hotel Chain X–which, remember, could mean that the person’s name can show up for his or her Facebook friends alongside Hotel Chain X display ads on the social network–he or she could be held liable by the FTC.”

As for Twitter, the FTC expects you to fit in a disclosure regardless of the 140 character limit. Cleland told McCarthy, “There are ways to abbreviate a disclosure that fit within 140 characters. You may have to say a little bit of something else, but if you can’t make the disclosure, you can’t make the ad.”

How can the FTC monitor every blog out there?

As Richard Cleland made the rounds of interviews, this question often came up. Cleland’s answer was that the FTC’s goal right now is to educate people on what is expected of them. He also indicated that the FTC would be “looking primarily at the advertisers to determine how the relationships exist” (from Ed Champion’s interview).

In an article on CNN, Eric Kuhn reports that “Richard Cleland . . . admits there will be no new team to monitor all the blogs, and that enforcing these guidelines would be a ‘game of whack-a-mole’ given the numbers involved.” Kuhn goes on to say that, “The new guidelines are viewed as more of an educational tool than any kind of requirement, and geared at advertisers more than bloggers. If numerous complaints are filed regarding a blog, the FTC is likely to investigate that the advertiser has properly advised the blogger of these guidelines.”

In his interview with Caroline McCarthy at Cnet, Cleland said, “…in the bigger picture, we think that we have a reason to believe that if bloggers understand the circumstances under which a disclosure should be made, that they’ll be able to make the disclosure. Right now we’re trying to focus on education.”

What about the $11,000 fine for bloggers who don’t disclose payment?

Mashable.com, TechCrunch, CNN, and several other trusted news sources were reporting early Monday that bloggers who don’t disclose payment will be fined $11,000 per violation. In fact, the updated FTC regulations (link downloads a pdf) don’t mention an $11,000 fine at all. Eric Kuhn of CNN tweeted Monday night, “I just spoke with an FTC spokeswoman. She said there is NOT a $11,000 fine for breaking the new guidelines re endorsements.” Unfortunately, none of the original articles with erroneous information have been updated to reflect that there is not currently a fine for violations.

Do I need to go back to my old posts and disclose for previous gifts or payments?

Lisa Stone, one of BlogHer.com’s founders, gave this advice:

“Since we started this network in 2006, BlogHer’s editorial guidelines have prohibited putting advertising in editorial space on blogs. So if you’re talking about posts you’ve made on BlogHer.com or in your blog IF it’s in the BlogHer publishing network, this question should not apply — it’s against the rules!

If you’re not in the BlogHer Network, we recommend that you update your “About” page with your blog policy about payments and review your blog for the current year and disclose any gifts or payments. For previous years, I think you can disclose on your “About” page the date on which you began your disclosure practices. We are not your lawyer, but as a a general practice we recommend that bloggers disclose any kind of payment at the top of every post written because of a payment of cash, goods, or services.”

Most of us are already doing the right thing and we’re not who the FTC is after. To be sure you’re in the know, download the current FTC guidelines. Then write up a disclosure policy and post it clearly on your blog. Not sure exactly how to write your policy? DisclosurePolicy.org can generate one for you.

This post was cross-posted at BlogHer.com.

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Making Money with Your Blog

There are two ways to make money with your blog: directly and indirectly.

1. Directly: Your blog is making money (usually via advertisements, affiliate marketing, or paid posts).
2. Indirectly: You (the blogger) are able to leverage your blog and sell yourself based on your successful blog. This could mean having a book proposal accepted, writing articles for magazines, or booking speaking gigs. This indirect method is one of the most popular methods of making money and several bloggers have made it work for them (e.g., Chris Brogan, Darren Rowse, Brian Clark).

Monetizing: Personal Blog Vs. Business Blog

In the interview, Darren says personal blogs are harder to monetize than business blogs. I agree with him to a certain extent. I have found that, because I straddle the line between being a so-called Mommy Blogger (even though I mostly blog about me and not my kids at my personal blog) and being a Tech Blogger, I have a different view of how monetizing can work for a personal blog. I plan to delve into this more after January.

I think Darren’s point is that, if you have a product (via your business blog) or are representing a business niche, it’s easier to sell that product or specific niche to advertisers. Advertisers know who they want to reach and if your product or business is complementary, then they see the value of advertising with you more readily than they would if you were just a blogger without focus. It’s going to be harder to sell advertising if you’re just discussing the Happy Hour menu at your favorite pub. However, you may talk to the pub’s manager and see if he’s interested in advertising with you!

Mommy blogs, on the other hand, are a different animal altogether. Many don’t necessarily push a specific product, but are personal. However, mommies are an important demographic. Women control about .80 of every dollar a household spends. Marketers see the value in reaching out to these woman and working with them to advertise and promote products. As I said, I’ll be tackling this topic more in-depth next month.

Optimizing Advertising on Your Blog

Darren offered these tips for optimizing your blog ads:

• Position of advertisement on your blog matters. Experiment to find the best placement of ads. Examples of where you can try your ads to see which is best include ads above the fold, placing ads within content, placing ads within RSS, placing ads at the end of posts (e.g., This post sponsored by …). The design of the ad is important.
• Increase your traffic to have successful ads. The more traffic you have, the easier it is to sell ads.
• Remember that the number of ads you post also impacts the success of your campaign. You don’t want to inundate your readers with irrelevant ads or too many ads.

Advice on Making Money with Your Blog

• Experiment and play with different models to see what works for you and your niche. Some blogs are more successful with CPM or cost-per-click ads, others are successful with affiliate ads. Don’t be afraid to ask your readers what they prefer or what would encourage them to click on an ad or make a purchase. You don’t want to distract from your content, but knowing how your audience will react to ads will help you determine if they are right for your blog.
• Consider your readers. They are the reason you’ll be successful. Your readers trust you to help them make decisions. If you accept an ad on your site, readers will most likely assume you agree with that ad and may make a purchase based on your recommendation. Don’t take this responsibility lightly.
• Cost per click ads: These are successful if you are seeing lots of SEO traffic. The ads are fed via a third-party (e.g., AdSense or Google Ads) and are directly related to what the reader is searching for. If someone found your blog by searching the keyword “SEO”, the ads she would see would be related to SEO. You’re paid by how many people click through the ad to the advertiser’s site. How many times have you actually clicked through an ad?
• CPM (cost per thousand) or affiliate marketing works well with loyal readers–you don’t necessarily have to high traffic volume. With CPM ads, you’re paid by how many people view the ad (e.g., $X per 1,000 visitors), not necessarily how many people click through the ad to the advertiser’s site. Affiliate ads (e.g., Amazon Associates) allow you to suggest product(s) and place a link (with your affiliate ID) within your blog post or sidebar. When someone clicks on that link, if she buys the product, you receive a percentage of the sale.

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