When people first start blogging, it’s common to ask themselves, “Is a blog considered a business?”
The answer depends entirely on if your blog is making money.
If it’s making an income, then it’s considered a business, and you’ll need to pay tax.
On the flip side, if you’re just getting started and haven’t made a dime, then it’s not considered a business; however, you should still treat it like one.
No matter how small your blog is, if you treat it like a business, then you’re going to be more successful than somebody who considers it a hobby.
Businesses make money, hobbies don’t.
In this article, we are going to dive into the different types of blogs and whether they are considered a business. We will also look at some of the most common ways to monetize a blog.
Different Types Of Blogs
An informational blog is made up of articles that help the reader answer a specific question.
A great example of this is Neil Patel’s blog. It’s made up of thousands of blog posts that help readers better understand digital marketing.
These types of blogs are very popular, as they tend to focus more on helping people than they do making money.
That’s not to say they don’t make any money, it’s just not their main focus.
As a result, informational blogs tend to do better on Google as they get more organic backlinks to their posts, boosting their authority.
So, are they considered a business?
If your informational blog is making money, then it’s considered a business.
Keep in mind that you won’t have to register your informational blog as a business when you first start. In fact, it could be up to a year before you need to register anything.
However, once the money starts rolling in, then it’s time to start filling in the papers, as everything you earn from then onwards is taxable.
Best Way To Monetize An Informational Blog
If you’re an experienced blogger, then monetizing is pretty straightforward; however, if you’re relatively new, it can be difficult, especially when you’ve got ten ‘gurus’ all telling you different things.
Despite all the misconceptions, the answer is pretty straightforward.
The best way to monetize an informational blog is through digital products.
Benefits Of Selling A Digital Product
Digital products are a great way to make money online. In fact, they are considered one of the best, especially online courses.
To start with, making a digital product isn’t going to cost you a dime, unless you want to outsource it to a professional, which we wouldn’t recommend.
This makes the profit margins astronomical. You can expect to make a whopping 97% profit on every digital product you sell.
It doesn’t get any better than that!
If you can put consistent effort into your informational blog for a year, there’s no reason why you can’t release a digital product that blows your readers away…
And puts money in your bank.
What’s more, you’re never going to run out of stock with a digital product. When you create something, it will last forever.
The type of products that last for a long time are in evergreen niches. For example, if you create a digital product in the make money online space, then it’s still going to be viable in three, or even five years.
How about the downsides of digital products?
There aren’t any major downsides; however, it’s important to understand that when you start selling digital products, you’re responsible for the customer service.
This means replying to emails, scheduling Q&As, and dealing with customer complaints are going to become part of your daily life.
While you can hire a virtual assistant to deal with these issues, you still need to be a face in the business and understand your customers needs.
Of course, you can minimize the number of complaints by making your digital product as good as humanly possible, but there’s always going to be some people who want their money back.
The purpose of an affiliate blog is to provide readers with the best products in the industry.
As an example, let’s say you’ve started a camping blog, you would create content reviewing all the different products related to camping.
Within these articles you would post your affiliate links, so when somebody makes a purchase you receive a small commission.
With these types of blogs, it’s considered a business from the start, so we recommend registering it as soon as possible, otherwise, you could cause more problems later on down the road.
A common example of an affiliate blog is Wirecutter.
Wirecutter is owned by the NY Times and reviews all the best products, collecting a nice commission along the way.
The difference between Wirecutter and most affiliate blogs is they don’t focus on one specific niche, they review anything and everything.
We don’t recommend this method, as it positions you as a generalist, rather than any expert in a specific industry.
Before you can begin reviewing products like the big dogs, you’re first going to need to join an affiliate program. There are tons out there; however, some of them aren’t as good as others.
One of the most popular is the Amazon Associates Program. This lets you be an affiliate for any product on Amazon. While this gives you access to one of the biggest marketplaces in the World, it does come with some downsides.
To start with, the commissions low, especially since Amazon cut them in half in 2020. That doesn’t mean you can’t make money, it’s just going to be a little harder.
If you do want to use Amazon Associates, you need to focus on getting a large number of people to your blog before you can start making bank!
Alternatively, you can use one of the other affiliate programs on the market.
Another popular choice is Awin.
Awin is a little different than Amazon. It acts as more of a bridge, connecting you with affiliate offers in your industry.
Benefits Of An Affiliate Blog
One of the main benefits of an affiliate blog is you can make money without having to do anything. Once you start getting traffic to your website, you can sit back, relax, and watch the commission’s roll in.
That’s not to say you don’t have to do any work at all; however, once it’s built up, it’s pretty much a hand-off experience.
What’s more, you don’t have to be an expert in the industry to create an affiliate blog. It’s as easy as purchasing a product, testing it out, and posting your honest review.
It also won’t cost anything to get started, as you’ll be reviewing other people’s products rather than producing your own.
However, if you did want to start designing your own products later on down the road, you can use your affiliate marketing blog to drive traffic to them.
Mixed blogs contain both informational and affiliate articles.
These types of blogs are usually preferred among digital marketers as they give you the best of both worlds.
They are also preferred by Google over strictly affiliate, which helps you rank higher and bring in more traffic.
But are they considered a business?
When you create a mixed blog, it’s going to have affiliate links from the start, meaning it’s considered a business.
Benefits Of A Mixed Blog
The benefits of a mixed blog are much greater than both informational and affiliate, as you can make money while providing readers with valuable information, helping them in their day-to-day life.
Also, if you’re constantly publishing high-quality informational content, you’ll attract more backlinks, which will boost your affiliate articles, leading to an increase in revenue.
Other Ways To Turn Your Blog Into A Business
Now you know why your blog needs to be making money before it’s considered a business, let’s talk about some other ways you can monetize once you’ve got some traffic.
When you go to a website, you’ve probably seen those display ads plastered throughout the content…
Is there anything more annoying!?
The blog owner isn’t putting them there to provide a better user experience….
So what are they there for?
You’ll be surprised to hear that the blog owner actually makes money for every person that clicks on these ads, hence why there’s so many of them on websites nowadays.
You can add these ads to your own website from day one. However, we wouldn’t recommend it unless you’re getting a lot of traffic, as it could slow your site down, which is a red flag in Google’s eyes.
If you’ve built your blog up to over 10,000 page views per month, you could use Ezoic for ads. Rather than placing ads all over your site, they think about the reader and try to keep the user experience as good as possible.
Start A Podcast
Nowadays, people crave a personal relationship with their favorite bloggers, rather than words on a screen.
That’s why creating a paid podcast is a great idea.
What’s more, if you’ve got your own podcast, you can be a guest on other people’s, which will get your name out there and help you become more recognized.
Plus, when you’re featured on someone else’s podcast, they normally provide you with a backlink, improving your SEO and bringing in more traffic from Google.
Offering consulting services on your blog isn’t for everybody. You need to be a specialist in your industry, otherwise, people aren’t going to trust what you have to say.
Also, it can’t be used in all industries.
For example, if you have a blog about camping, then it’s going to be hard to offer consulting calls to people.
On the flip side, if you’re in the self-improvement niche, then a sixty-minute consulting call sounds more promising.
The great thing about consulting is you’ll end up building a great network of like-minded people.
Who knows, maybe you’ll go on to create businesses together in the future!?
Launch A Paid Webinar
Webinars are a great way to connect with your readers and give them the chance to ask important questions.
What’s more, for somebody to sign up for your webinar, they need to provide their email and name. You can then add them to your email list and turn them into repeat customers in the future.
However, similar to consulting, this is only going to work in some niches.
Try launching a webinar in the cleaning niche, and you’re going to fall flat on your face.
Rather than offering free content, how about turning part of your blog into a paid membership site?
Doing this saves the best content for the paying readers and adds a sense of mystery to your blog.
What’s more, you’ll be bringing in a nice monthly income if people stay subscribed, which we’re sure they will if you’re creating amazing content!
Be warned though, membership sites aren’t an easy sell, so it’s going to take a bit of work. Plus, you’re going to need to install WordPress plugins that restrict certain articles, which costs money.
Once your blog begins making money, it’s time to start declaring what you earn.
Alternatively, if you’re not planning on monetizing your blog, then it’s not considered a business, so you won’t have to worry about declaring anything.
We hope this article has helped you. If you have any questions, drop a comment below and we will get back to you.
Read More: Are Blogs Still A Thing?