Making Money Online – Know The Actual Costs of Blogging?

There have been an increased number of people attracted to working at home over the past couple of years. Making use of various tools online, and knowledge available to boost a small to medium sized business.

Meeting fellow entrepreneurs from various walks in life, it has shocked me that many are running their blogs without taking into consideration the financial side of the business.

Are we tackling this online career with a notepad, taking down every detail of money spent,  whether we are gaining knowledge or trying various methods of attracting people to our sites?

Or are we plain and simply hoping that when we make some money online, we will recoup what we have spent before showing a profit!

Well established Marketers have the funding behind them to purchase either the required resources or assistance, when setting up most of us don’t have this luxury!

Rest assured, everyone started with little or no knowledge.  A definite thing is, if you wish to start up correctly and require more knowledge, you will be spending money.

From what I have made a note of up to now, the following are some of the expenses that may need to be addressed, some sooner rather than later.

  • Loss of Earnings
  • Web Host
  • Domain Name
  • Office supplies, i.e. Ink Cartridges, Paper, Files, Pencils, Note Pad,
  • Electricity, Water, Phone line rental
  • Educational expenses – Learning how to…
  • Cost of outsourcing work
  • Advertising costs incurred – example Pay Per Click
  • Salaries – Should you employ an assistant
  • Bank charges – No matter which bank you use, there is always a cost.
  • Legal advice
  • Software/Hardware Purchases

Don’t be deterred from goals, so long as finances are controlled with a simple spreadsheet, this should not take up a lot of time. Keep it simple, set-up enabling a quick and easy reference system.

Once you get into the habit of taking note, like anything it becomes less time consuming and a pleasure to have on hand.

Office Suite (free)             

Take a look at this resource to get you started, in the near future I will be setting up online help to assist with starting simple spreadsheet bookkeeping. There is no need to spend money on keeping records for reference. If you have a Google account, sign up for Google Apps where you will have a document feature available, this is another free method to use.

  • bookkeeping is the glue that keeps your business together
  • if your records aren’t in good shape, the business could fall apart
  • a healthy business is monitored through its records on a regular basis
  • you can find problems and correct them before it’s too late

While sitting down to one of my favourite pastimes, chomping a bag of popcorn and listening to the latest “Guru’s” podcast, it was the un-popped corn going to waste that bugged me. Not one packet ever pops all the corn (waste), and I can only relate this as an example of keeping track of hard earned money.

Know what costs are being incurred; ascertain how much profit is being made or how much money is being lost, just like the un-popped corn. Now if you are smart, put the packet back into the microwave oven you may be able to recoup the last of the un-popped corn. In the same way tweak the site pages and squeeze some more life out of a project before abandoning. Track every event, if you start losing money, see if you can undo or redo whatever did not work. It may just require a bit more thought and less money spent.

Back to chomping, and the dreaded un-popped corn hits your tooth, this can end up costing, oh yes, and the Dentist does not come cheap!

Running a site is much the same, we become so engrossed in what we are doing, we forget to count the cost from time to time. Know the Return on Investment for each product launched, before it feels like the bit between your teeth.

Marketing online; I have never met more determined and learned people, wishing to overcome problems they face. Finance is a pillar of the business no one can afford to overlook or ignore. So Please, Look After Your Money Honey!

If you enjoyed this article and would like to find out more, please visit my site and thanks for taking the time to read my article.

This was a Guest Post by Joan Stewart who wrote this article and is about to take bookkeeping on line, “basic bookkeeping” that anyone can do in a “heart beat”, for more about Joan please check out her links below:

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Category: Financially Elite Blog