There is a interesting article today, Yes, some blogs are profitable – very profitable, from SfGate that talk about how Techcrunch and other tech blogs (VentureBeats, BlogHer etc) make money. One reason is that they keep low headcount and another is that they leverage on brand equity to use site for advertisement and for venturing into event hosting (etc Techcrunch 40) etc
Today, TechCrunch has a full-time staff of eight. This year, it hired a CEO. In August, 1.25 million people visited TechCrunch or its affiliated blogs at least once, according to comScore Inc. It brings in $240,000 per month in advertising, according to Arrington, and pulls in additional revenue from conferences and parties.
TechCrunch illustrates the new blogging math. It sells sponsorships that allow advertisers to display on the home page at $10,000 per month. It also uses Federated Media to sell display ads, keeping 60 percent of the revenue. And it charges $200 to list in its Cool Jobs section, getting about five or six want ads per day. Parties and conferences add another income source. Last month, TechCrunch organized a two-day event at the Palace Hotel that gave 40 startups a platform to tout their wares.
And, as far as spending goes, “our costs are only headcount,” Arrington said.
Wow, that’s cool ! Fancy making huge sum of money from his hobby.