January 13, 2006

Most Blog Networks Have an Identity Crisis (Not Us!)

Scriv's post Why Blog Networks Will Fail This Year hit the nail on the head in many ways. The past six months have seen dozens of blog networks spring up, but it is very likely that many will not survive 2006. I think a big part of the problem is that some of these blogs have an identity crisis.

What do I mean by that? Well they often launch without much differentiating them -- i.e., they have a gadgets weblog, a video game weblog, and so on, but they don't have very many blogs in niches where Weblogs Inc. doesn't have competing blogs. They are trying to compete in very general niches where there are already many good blogs, but they aren't bringing enough quality content to give readers a reason to choose them over the established alternatives. Further, late-comer blog networks have a habit of completely changing course 2 or 3 months after launch--changing pay structures, merging with another network, or just plain not living up to expectations.

All of this doesn't bode well for these networks. A business without focus will not last long.

Meanwhile, despite the criticism BizNicheMedia has received, I think Rich and I have done a very good job of carving out an identity and sticking with it. Less than a year ago, we decided to start this company with the following goals:

  • publish content only in very highly profitable sectors (i.e., niches where contextual and affiliate advertising opportunities pay in the double or triple digits CPM)
  • hire writers in developing countries at a significantly lower cost than what American, Australian or UK writers would cost us (yet ensuring that we pay a competitive local wage)
  • establish blogs in niches which are currently not well-served by blogs (self publishing or HIPAA compliance anyone?), along with other business- and finance-centered offerings
  • prioritize content volume over quality (while still trying to maintain a reasonable standard of quality)

At this point in time, BizNicheMedia is not yet profitable, but that isn't fazing us. In fact, our revenue growth and cost structure remains tightly in line with our initial projections. We started this company with enough capital to get us over the hump--and it will.

The hump is in sight. We are staying the course.

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January 13, 2006 in Business Issues | Permalink


Comments

That sounds like an interesting strategy for a network. Have you had any issues finding writers who can generate compelling content for the niches you've identified as having a high profit potential?

Posted by: Ed Kohler | Jan 15, 2006 10:24:15 AM

I agree that focus is important. I blog for the Know More Media network, and I'm glad to say we have very specific goals for 2006 - see http://www.knowmoremedia.com/2006/01/beefarino_and_other_goals.html

Without a clear plan, a lot of these networks will run into serious problems. I'm glad to see that you also have some clear goals and I hope that they guide you to success.

Posted by: Easton Ellsworth | Jan 17, 2006 6:51:37 AM

Ed,
Yes finding quality people has been issue #1 for us over the last few months. To do these blogs justice requires some talented writers who also have some background and interest in the topic. Finding that person for a topic like self publishing or VoIP is easy, but topics like PayDay Loans, as you can imagine, is not quite so simple.

We aren't all the way there yet, but our current staff I think is talented and are improving fast.

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