How to manage finance when you earn money through blogging

Do you make money blogging?

In this article, we will show you how to avoid the typical financial traps that can cost you unnecessary money.

We will also show you how to gain control of your finances in order to increase the profitability of your blog revenue. Read on!

Keep track of your finances

As soon as a blog starts to become profitable, you’ll often have to follow the rules and laws of an independent employee. But your blog is normally not subject to auditing or taxes until the revenue has reached a certain size - yet it can be very profitable to keep a financial record as well as to see the profitability of your business.

This will, among other things, help you keep track of how much you’ve earned and bought at all times. It’s important to keep in mind that you often have to pay taxes on sponsorships and gifts.

Use an accountant if you’re unsure

You can keep track of your finances by using an accountant for everything, or you can do the invoicing yourself and then use an accountant for a quality check.

There are also accounting software and applications that do the job for and all you have to do is filling in numbers while the software fixes the rest.

How to monetize

Earning money on your blog can be fairly easy. But before you start earning money, you need to find ways to generate traffic to your blog, so that advertisers and business partners can find value in it.

Once you have a flow of traffic in place, you can start to monetize from:

• Online ads
• Sponsorships
• Product reviews
• Finding a business partner
• Connecting your blog to an Amazon Associate account

Donations

You can also ask people to donate money to a project or your blog. But be careful with this one, however. We tend to only spend money on products, services, and donations that will give us something in return.

What can you or your blog offer your audience? This can be things such as:

• Events
• Valuable knowledge
• Products 
• Goodwill

Consider premium content

Online newspapers have been doing this for a few years, and bloggers have started to do the same as well: Charging for premium content.

If you have enough interested readers, people are willing to pay for the content that seems the most interesting.

Now that you’re ready to start making money on your blog we wish you good luck!