Frequent Blogging = Compound Interest

If you’ve invested money, you understand compound interest. If you need a refresher, let me explain the concept:

  • You invest $1,000 today in a financial asset, such as a retirement account.
  • At an 8-percent rate of return, the $1,000 you invest this year becomes $1,080, without any assistance from you.
  • In the second year, your initial $1,000 isn’t the only thing that’s growing; that extra $80 is also growing. After 30 years, your initial $1,000 would be worth almost $11,000. That’s without any work from you; it’s just the miracle of compound interest.

Because you want to make even more money, you don’t just stop at investing $1,000. You invest an additional $100 per month, which also grows at an eight percent rate of return. With these additional cash infusions, after 30 years, your initial $1,000 is worth nearly $160,000.

Compound interest is the reason we all wish we’d started our IRAs when we were younger. The more you invest, and the longer your money has to grow, the less you have to put in to make more. Play with this compound interest calculator if you want to get more familiar with the idea.

An initial investment of $1,000 at age 20, with an addition of $300 per month, is worth over $1,000,000 by the time you’re 60. You only invest a total of $145,000 (your initial $1K plus $300 x 12 months x 40 years), but the miracle of compound interest turns you into a millionaire.

An initial investment in blogging, with a regular commitment to creating new blog posts over time, can yield significant ROI. Your blogging return grows slowly in the beginning, but it builds momentum over time. It’s time for your small business to start investing in blogging the same way you personally invest in your IRA.

How Blogging Yields Returns

Blogging returns aren’t measured in dollars but in money-making potential. Increased brand awareness, 24/7 online presence, and authoritative positioning lead to revenue opportunities.

Builds Brand Awareness: People Recognize Your Company

Writing and posting regular blog content helps you build awareness of your business and your brand. Blogging generates a steady stream of content to share via your social networks. Regular social sharing connects you with new followers, and it gives you the chance to build connections with influencers and potential partners on social media.

By 2020, according to Kapost, 85 percent of customers will manage their business relationships without talking to a human. Seventy percent of customers learn about a business through articles, not ads. Since customers take the initiative to make first contact, your business needs to be at the top of their minds. Customers who find you through your shared blog posts aren’t necessarily looking for you at the time, but when they need a company like yours, they’ll remember that they’ve heard of you.

Provides an Always-On Customer Connection: People Can Find Your Business

Regularly adding fresh, high-quality blog content causes Google and Bing’s search algorithms to view your website favorably. Even more importantly, your content helps to connect you to customers searching for sites like yours, particularly when your content directly answers the question they type into the search field.

When customers query Google or Bing, they’re not only searching for a topic; they’re searching for a topic with an intent to act. They intend to learn about something, to find a business like yours, or, if you’re lucky, to make an immediate purchase. Even if your store or office isn’t open, your website is open to make the connection. And it’s more likely to rank well on Google when you’ve committed to regular blogging. Companies that use blogs have 97 percent more inbound links than companies that don’t blog regularly.

Improves Market Positioning: People Trust Your Business

Regular blogging shows that you’re engaged in what’s happening in your industry. When you write about a mix of the latest news as well as creating content that answers customers’ questions, you position your business as an engaged, go-to authority in your industry and community.

You’re not just one option floating on the Internet sea; you’re the best alternative out there. Eighty-one percent of U.S. consumers trust advice they find in a blog post.

Generates Leads: People Are Primed to Purchase From Your Company

Fill your blog posts with assets for which your customers will trade their names and contact information. They might provide an email address to subscribe to your blog, sign up for a webinar you’ve mentioned in a post, or download a whitepaper you’ve linked to in your post. These names becomes leads that you can nurture into your sales pipeline.

B2B marketers that use blogging get 67 percent more leads than marketers who don’t use blogging. For small businesses, the benefit is even more pronounced; they rack up 126 percent more leads than similar-sized businesses that don’t invest in blogging. When your leads commit to making a purchase, they have an established relationship with you. They’re going to make the transaction with you, not with a company with which they’ve never interacted.

Different Yield Patterns: The Importance of a Diverse Blogging Portfolio

You don’t invest all of your retirement money in a single stock. Instead, you invest in a mix of stocks, bonds, and money market securities. Your blog should also contain a mix of different assets. Each type of asset follows a different yield pattern, ensuring that at all times, some part of your blog is performing.

Current Events Posts

A current events post provides your take on a real-time happening in your industry. It’s usually something ripped from the headlines designed to attract readers who are interested in a current topic. These posts usually yield big bursts of traffic right when you publish them. As the event fades from the news cycle, direct visitor traffic fades with it.

Here’s what the pattern looks like:

blogging traffic for current events post

 

Seasonal Topics

If you’re an accountant, your income tax-related blog posts will see a big boost during tax season. If you run a sports equipment store, blog posts about football, hockey, and baseball will peak at different times of year. Next year, at the same time, the same posts will peak again. You get regular, predictable traffic bursts based on your company’s seasonal cycles.

The seasonal yield pattern:

blogging traffic for seasonal posts

Evergreen Content

Evergreen topics, like evergreen trees, hang around when other topics become dormant. They might not attract high traffic volume in the beginning, but over time, they’ll actually increase in popularity.

It’s not enough just to have evergreen content; you also have to revisit it to keep it current. A library of common topics—think of customer FAQs—will attract a growing stream of visitors.

Here’s the evergreen traffic pattern:

blogging traffic for evergreen posts

Invest. Wait. Accelerate.

Investing in blogging, like investing in an IRA, builds momentum slowly at first. Once your blog hits a tipping point, you can expect your investment to pay off.

  • Companies that have 200 or more blog posts generate five times as many leads as companies with 10 or fewer published posts.
  • Once you’ve published 100 posts, you increase your likelihood of seeing continuous lead growth triples.

Blogging doesn’t cost much compared to splashier marketing strategies, and it generates proven ROI. Contact me to breathe new life into your blogging strategy today.

 

Featured image credit: Negative Space

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