Running a successful website or blog is a simple matter of increasing your numbers consistently over a period of time. This goal is exactly the same as every CEO in the corporate world. I have this profound interest in the stock market, so why not think of websites as stocks? :)

Sometimes we need to step back and consider how we are doing. Far too often, bloggers fail to see the “big picture” of things, and focus too heavily on the near-term. Not the Net Fool. All websites are stocks in my mind, and I am focused on improving my margins (efficiency versus other “companies”) and increasing my growth rates (traffic, subscribers, etc.) across the board.

Here are five reasons you need to consider my “stock chart” theory:

  1. Companies focus on earnings, bloggers want to make money too
  2. Companies expand margins, bloggers want to beat out competition
  3. Companies project future guidance, bloggers plan for the future
  4. Companies concentrate on returns, bloggers want more “bang for their buck”
  5. Companies track their historical prices, bloggers’ traffic acts as a stock chart

1. Companies focus on earnings, bloggers want to make money too
Question anyone who tells you “they aren’t in it for the money.” I’ll tell you right now that I see blogging as a huge cash flow possibility. Just as companies try to grow out their earnings year over year, bloggers try to drive more money out of there websites. Simple right? The Net Fool Dot Com might as well be a stock, because I am acting as the CEO when I make moves like networking, running contests, and posting articles. It all comes back in the form of higher revenue!

Bloggers provide a service to others, by offering up useful material, just as companies make money by providing services or goods to others that request it. When push comes to shove, this is a business just like anything else. People that fail to realize this are not going to maximize their earnings.

2. Companies expand margins, bloggers want to beat out competition
For most bloggers, myself included, its all about being number one. Just as companies compare their efficiency with one another in the form of margins, which show performance and market share, bloggers should always look toward their competition as a benchmark that they need to beat.

Bottom line: if you don’t have any benchmark, the “drive” is not there anre you aren’t going to be a successful blogger. We all need competition to have someone to compare ourselves to, and to set goals. Just as I look for ways to “get ahead” in my focus area, companies focus on leading niche markets.

3. Companies project future guidance, bloggers plan for the future
To let investors know what’s up, most companies offer expectations in the form of earnings guidance for the months or year ahead. Much in the same way, I have outlined my plans for the future and how I hope to dominate my niche market. Especially in the field of blogging I am in (making money online), you are going to hear about how people are doing, and how they expect to be doing.

I think its important to plan for the future. Too many bloggers nowadays are all concerned about what is happening in the short-term. I tend to zoom things back a bit and see where I am going to end up. It’s essential to keep this forward-looking strategy to be successful as a webmaster.

4. Companies concentrate on returns, bloggers want more “bang for their buck”
One important metric of a stock’s value is “return on investment capital” (ROIC). This ROIC number basically shows the return you get on every dollar you invest in a company, pretty important right? This is exactly the same in the blogosphere, and on two ends. Think about it. Bloggers are determind to increase their own value, getting more out of their blog then they are putting in. Much in the same way, readers are concerned with getting their money’s worth (in this case time). Nobody is going to read your blog unless they get something back from it.

So ROIC is equal to bloggers/readers getting their money’s worth. What’s the point? I think this is quite obvious, the point of all things in life, including blogging, is to make more back then you are investing… or profit in simpler terms. If you can’t get a profit, you are missing out. The time you put into your blog needs to be less than the value of everything you get back… or you are a loser in this game. ;)

5. Companies track their historical prices, bloggers’ traffic acts as a stock chart
Have you ever looked at a companies stock chart and thought “wow, they must really be doing something right?” You need to start shifting this kind of focus to your blog. Let’s bring out a few graphs, things like traffic, rss subscribers and alexa rank for example. You can see with relative ease how these stack up to your overall performance.

I like to have a look back and say, okay my Alexa ranking has been in an uptrend recently, what can I do to increase this growth and continue up? If things in your traffic are dragging, then you know you are doing something wrong and you need to take a look at what you are doing to fix it. Having a great blog is as basic as having a great chart.

In this field, traffic equals money. By looking at your website like a stock, you can more easily analyse how to maximize your returns, whether this be traffic, subscribers, recognition or just plain ol’ money. Coming from a business background, I am a firm believer that looking at a more long-term view can really strengthen your blog. :)

-The Net Fool

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