August 05, 2008

The Lifetime Value Of The Blogger Who Voluntarily Promotes Your Brand

Let's assume that you sell widgets. Your widgets are stylish and well built.

And then a blogger writes about your widgets. You're probably already measuring the impact bloggers and social media have on your brand, right?

Here's what you learn:
  • 500 individuals visit your website, with a referring URL from the blogger. 10% of those visitors purchase something, 50 in total, spending $200 each, for a total of $10,000.
  • 10 bloggers link to the blogger who wrote the original article. Another 500 individuals visit your website with referring URLs from these ten bloggers. 5% buy something, 25 in total, spending $200 each, for a total of $5,000.
  • Total sales = $15,000.
  • Total gross margin = $7,500.
  • Total contribution = $6,000.
Your brand generates $6,000 of profit because of the voluntary efforts of one kind blogger.

How do you, the executive of this brand, measure the lifetime value of a positive blogger? Do you choose to reward the blogger for her efforts, and if so, how?


  1. I think a lot of folk haven't got to stage 1, yet: acknowledging the impact bloggers and others can have on their brand and sales.

    It depends a lot on the kind of blogger we're talking about.

    I'm not sure material rewards are necessary, as bloggers have their own reasons for writing about a service or product. Though I'll mention two words...affiliate programs.

    More important is connecting with bloggers. Even those who don't want to be "compromised" by rewards will value the opportunity to get, for example, questions answered quickly, quotes, inside info on products, scoops, review items, etc. (not to mention the occasional word of thanks!)

  2. I don't think it's necessary to "reward" the blogger with something material, that might actually backfire. But I think the company would be foolish not to create a relationship with that blogger, perhaps assigning someone in the communications or marketing departments to serve as a liaison offering them greater access. This should be carefully negotiated because many bloggers may want to maintain their independence, but may appreciate the ability to interview a senior exec.

  3. Anonymous7:18 AM

    Agree with Mark & Glenn - direct pecuniary rewards are not the way to go.

    It's important to remember that bloggers serve an audience by creating quality content.

    Helping create more valuable content (by granting them interviews, inside info, review products, etc) will likely be more valuable to them than any direct compensation (which IMHO most bloggers would deem an attempt to "buy" them).

  4. Would anybody be ok with things like a program where the brand in question invites folks to an annual thank you dinner with the CEO or a member of the leadership team, or something of that nature?

    Agree that rewards don't have to be financial --- but could appeal to other interests.

  5. Again, I think it has to be on a case-by-case basis.

    The guy will probably love a thank-you dinner. The guy might need to be treated as you would a journalist. Not a thank-you dinner, but perhaps an opportunity to join an exclusive list of invitees to discuss brand's 2009 product line.


Note: Only a member of this blog may post a comment.

Lots of Choices!

I updated my product offering (click on the image below or click here to visit my Hire Me page ). There are several updates here. I re-intro...