James Avery’s blog

October 7, 2009

Thoughts on Compound Growth - Possibilities and Dangers

Compound Growth of an Online Business

Compound Growth of an Online Business

On Sunday, I posted about how little I was actually earning from my blogs, and how I hoped to enter a steep learning curve in order to improve this. I’ve never been shy of writing content, but the social media arena has always been something I’ve never quite got round to entering. So I decided to hold my hands up and admit to being a total newbie, and see where things go from here. I have entered the steep learning curve of twitter, blog promotion and blog optimisation, and I am looking forward to enjoying the ride. So how realistic is it to expect to follow a growth curve which keeps on going up, and how can website builders ensure that their growth is exponential, rather than just solid and linear. Or is linear growth better?

Well, I have always found the prospect of compound growth far more exciting. Prior to turning my attention to blogging and offline print maps, I maintained a 60-70% annual growth rate on Flightmapping.com. Of course, the big question when anyone makes claims of massive growth is what level they are starting from. It doesn’t take a maths genius to work out that 1000% growth from £10 per month is still just £100 per month. But what if that is just the start, and within a few short months, you can double that figure again several times over?

Of course, the possibilities are endless - and there is no reason why a relative beginner can’t build up a substantial and stable income through building highly relevant content-focussed blogs - providing that there is a revenue stream which can be built from them. It is no use blogging about a subject which either has very few potential readers (although believe me, on the internet, there are people out there into just about anything), or which is just not going to generate much revenue (note to self - stay away from long political rants!).

So what are the dangers?

Judging by the endless streams of spam on twitter, the first pitfall has to be to go down the ‘I made millions of dollars online and so can you’ route - almost all of these systems are built on bringing more people in below you in the pyramid, and they just aren’t actually out there to generate any kind of sustainable income, except for those who are in right at the very start. Quality content blogs take time to build up, and this is the big question. Do you have the time to spare? Can you sit back and wait for your websites to grow? Well the good news here is that you will never have to sit around twiddling your thumbs - on the internet, everything can move like lightning, so it’s totally unlike opening a retail store and waiting for the punters to come in off the street. The simple question is - can you build up your website(s) quickly enough? Well, as long as you are starting off by building your website as a secondary income generator, the answer should always be yes. Expecting to become a millionaire overnight is almost certainly going to land you in disappointment.

So even if the rate of growth slows down as you get bigger, it still pays to go for explosive growth.

Happy blogging!

October 3, 2009

Last month I made a paltry £10 through blogging. I just want to double this each month!

Forget about all these wild claims about making thousands online from signing up to someone else’s automated scripts programme!

I don’t want to earn a fortune, I just want to double this amount every month for a year! Hang on a minute, after a few months, this starts to look quite juicy:

September £10
October £20
November £40
December £80
January £160
February £320
March £640
April £1,280
May £2,560
June £5,120
July £10,240
August £20,480

Oh, the powers of compound growth! Of course, doubling for the next few months should be child’s play, but who knows what will happen after that.

To clarify - I am looking at building up Adsense and perhaps other affiliate revenue from blogging alone, and not from Flightmapping.com, which is a dedicated travel website, albeit one built using very last millenium web 1.0 Architecture! Flightblogging.com is a standalone blog related to, but getting very little traffic from, Flightmapping.com, and my own personal blog is now building up slowly too. I also expect to re-instate a couple of other long standing blog projects, whereas the World Tube Map concept may evolve into an online discussion with some revenue opportunity, but the main aim of this is to actually sell physical printed maps, which don’t count as online revenue.

You might ask why current earnings are so low. The reasons are simple - I am a relative latecomer to the social networking and blogging scene, having put so much effort into building Flightmapping.com as a content portal, and focusing purely on SEO around the quantity of text, rather than playing the link building and social networking game. I am declaring my hand as a newbie in this field - and I want to learn - FAST!

Hopefully progress will develop with some good advice from friends old and new.

As always, keep your seat backs firmly upright, Pay Attention Meticulously, and enjoy the journey!

May 21, 2009

More not so random thoughts

• I am definitely practising my own version of flipping – sleeping from 9-to-5, and working the rest of the day (well, night really) round that, but this week has been pretty good so far, even if I would like to have gone to the twitter discussion event which was on earlier on today in London, but I only found out about that from Murray Newlands’ blog late last night.
• My hours might be totally out of kilter, but I am trying to get into a habit of producing a minimum of 1500 words of ‘useful’ (i.e. commercially proven) content before doing anything else, or at least as soon as I switch the computer on.
• Having said that, the first thing I did when I got ‘up’ today was go for a bike ride, and this was a nice reminder of the joys of cycling along canal tow paths (see upcoming Bling My City post for more about this).
• I haven’t got round to reading or hearing any news today, but the last breaking story which came through last night as I was shutting my computer down was that there had been a military plane crash in Indonesia. No doubt by now we’ve had the usual messages of condolence from the Foreign Office, saying how deeply saddened Mr Miliband is to hear such a tragedy. You always know when they trot out the deeply saddened line that they don’t give a monkey’s, because if they did, they’d say something original.
• Speaking of news, much as though I was glad to finally see the back of speaker Michael Martin, has this not buried a far more significant story about the missing link being found in the evolutionary chain? Surely when we look back at 2009 in 20 years time, this will be one of the most important scientific discoveries of our time, although how it had been kept under wraps for 20 years is another story.
• I was having a good MSN chat with the ever-busy Nadeem from Azam Marketing  last night, and we were both agreed that quick lists like this are quite a useful way of dividing up thoughts, ideas and useful links, but I also wonder if there is a twitter application which could compile up a day’s posts, filter out the idle chit-chat and then integrate the decent ones with WordPress? I guess not, that would require a computer to do some thinking.
• So what useful links could I add today? Michael Dunlop (Income Diary) has an interesting list and discussion of 30 dyslexic entrepreneurs — there’s a few well-known and well documented characters on the list like Richard Branson (Virgin) and David Neeleman (Jet Blue), but I didn’t know about Ingvar Kamprad (IKEA), but can’t exactly say I’m surprised. In certain respects, I’d have asked the question the other way — which entrepreneurs (or major achievers in any field) haven’t had to deal with some form of learning disability, serious emotional challenge or mental illness at some stage in their lives? If you go through the list of the top 10 greatest Britons, I don’t think you’ll find any. http://en.wikipedia.org/wiki/100_Greatest_Britons
• Speaking of IKEA, it’s about time I went to get some more bowls for the kitchen, and this has to be a lot easier when you have a flashy new city centre IKEA store within walking distance. How many people have bragging rights to that? Seriously though, IKEA has to be one of my most respected brands, and I’m really glad they actually put a bit of thought into designing it.
• Lee McCoy (the Get Visible legend) had an excellent interview with Martin ‘purple’, where he gives a very interesting tip about using social networking sites like twitter to ask questions, rather than just talk about your lunch.
• I also need to look up ZiiTrend, a website about ’social predictions’.
• Meanwhile, Lee himself made some excellent points about blogging being far from dead (I think this particular Internet party is only just getting going), and I certainly concur when he says ‘I agree that Twitter is a much better conversation tool, and when you think that open conversation is the best route to expanding your mind, I still prefer blogging as the nature of my thoughts are essentially verbose. I dislike quick one-liners, it simply isn’t me’.
• Going over some reading from last night, Nadeem also gave a very interesting interview to Murray Newlands, but I think I’ll have to take him up on his comments about Margaret Thatcher later.
• See Flightblogging.com for my upcoming post about Log maps, potentially the next major development in Flightmapping.com.
• Whenever I come up with new ideas, I’m always slightly wary of sticking them straight up on the Internet, because a lot of people say that somebody else might steal them. However, I just don’t think there is much you can really do to copyright protect an idea, so my general feeling on this is to just stick stuff up anyway. I’ve never been short of ideas, so if somebody takes one, well, you know what they say about imitation and flattery.
• Yesterday, Chris Clarkson pointed me to a very interesting article about the Google user experience, and their 10 principles to create a so-called ‘Googley’ website. I think we have a lot to learn, and a lot to do, so that’s enough for now.
• Well, not quite — last night, Nadeem kindly suggested that I should update my blog more often, and I’m glad to say that even though I’ve been doing a couple of posts each day this week, this hasn’t distracted attention from the ongoing text updates for Flightmapping — these will always be like painting the Forth Bridge, but if you really do want to know anything about finding cheap flights to Copenhagen, Stockholm or Oslo, that’s my focus this week. As far as the maths goes, this blog post, like almost all of the content I write, has been created using voice recognition, so it has just taken 20 minutes so far, and maybe another 5 to check. Regardless of whether anyone else reads it or not, I always think it is good to review what you’ve read yourself, especially as there is so much other random information out there. I reckon that between blog posts, twitter updates and news articles, you could quite easily scan through 100 pages in a couple of hours, so spending 15 to 20 minutes summarising the key points has to be time well spent.

Enough for now!

March 19, 2009

You can collect loads of followers on Twitter, but is it really worth it?

I’ll have to admit to only really getting in to Twitter over the last few days, having signed up some time late last year. I seem to be getting a few random followers who I have never met before, and have very little connection with - or at least that is, until I read their profiles. I don’t do this all the time, but sometimes my curiosity has lead me to investigate further. It is a scary world out there when you are effectively giving recommendations about people based on just a few seconds of initial profile scanning, but Daniel Ruben Odio-Paez is someone I  will keep an eye on:

  • Why Henry Ford would love blogs - the key point being that a blog can answer one particular question, and that you can then refer to it multiple times, effectively creating an online assembly line to keep pumping out your information.
  • How to get 2000 twitter followers in 10 days. My first reaction to this headline was - do you really want to have that many followers? Well, of course we do, it suits our vanity, so let’s try again - do you need to have that many followers? I guess that’s down to the kind of website you run, but if you run a website which can bring you new clients, or attract advertising revenue, then I guess the answer is a straight yes. So is there a secret plan? It is all based on using scripts to find people who have similar interests to you, following them, and then assuming that they will follow you back. Statistically, 30% of them will. Twitter will only let you follow 2,000 people, so you then use another script to stop following people who haven’t followed you back, and start the progress again. My verdict? This might be a useful way of expanding your social network, but you are making very shallow connections, with an automatic expectation of getting something back immediately in return. I don’t think that is what networking is all about, and I’m also not so sure that this method would bring in that many useful contacts to turn into clients. But if you want to do it for your own vanity, the above link will at least tell you how.

I think Daniel’s post about Henry Ford is much more interesting than his post about collecting Twitter contacts, although I’ll admit that it was the latter which got my initial attention. Looking back over the Henry Ford post, he points out that a blog needs around 100 posts before it will start getting any return on its time investment, and that a serious blogger needs to have 500+ posts. Looks like I still have a long way to go then.

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