Blogs have become one of the most innovative marketing strategies since the creation of the print sales letter. Blogs are great for online marketing because they serve as interactive communities where business owners can segment certain markets and become experts by writing about trends and giving advice.

Blogs also allow business owners to connect with audiences (existing customers and prospects) on intimate levels because the tone is less formal than the tone used in traditional editorial writing.

Blogs are often used in conjunction with or as substitutes for company websites because they are more user-friendly, cost efficient, and personal than traditional websites. A blog can be started for free, whereas customized websites can cost thousands of dollars. If a business owner is just starting out and has access to limited funds, she should visit WordPress or Blogger.

I prefer to use WordPress for blogging because of its simple and user-friendly interface and applications. Users can also use a free sub-domain name (for example, www.yourdomain.wordpress.com), select a new domain name (example, www.yourdomain.com) for $15.00 annually, or map and update the name servers for an existing domain name for $10.00 annually.

The vast number of blogs published everyday (there are currently over one hundred million blogs online) means business owners need to differentiate their blog message and brand by being unique and niche specific. For instance, a skincare company can customize headers and page layouts by using images from istockphoto, widget applications (like twitter, facebook and text boxes for affiliate links), and content by discussing new product ingredients, trends on the runway, and tips for better skin. A service based business, such as financial planning, a retail bank, or restaurant can publish the latest industry trends, how the economy influences the industry, as well as social and political influences.

For branding purposes and better search engine rankings, images should be content relevant. Posts should be short, approximately 250 to 400 words. Content must be valuable, somewhat different from what is already out there to keep readers engaged, and updated at least twice per week. Blogs should not be covered with advertisements nor shamelessly promote the blogger or blogger’s business because readers, put simply don’t care.

While still following the “rules of blogging,” blogs can still be monetized and contribute revenue to a business by using some of the following strategies:

• Adding Google’s famous Adsense program is one of the most common and efficient ways to monetize a blog. The Adsense program enables website owners to enroll in the program free of charge. Adsense works by displaying text, image, and video advertisements. Revenue is generated on either per click or per impression basis. Advertisements are content relevant and often times, geographically specific.
• Selling products such as e-books, courses, reports, or hosting teleseminars are other ways many businesses generate revenue through a blog.
• Selling advertising space to non-competing companies for a fixed monthly rate or through a pay per click program can generate revenue especially when the ads are placed in “high exposure” areas such as the leaderboard space at the top of the page.
• Bloggers can ask for donations to help support and maintain the site by placing a PayPal button on the blog or by using a tipping service like ScratchBack.
• An electronic newsletter is an opportunity to reinforce the brand and provide another revenue stream by selling advertising space or sponsorship. Publish as frequently as you like – one to seven times per week. Newsletter programs can be set up through Vertical Response, AWeber or Constant Contact.
• Adding affiliate products in the newsletter as well as on the blog margin is another common way to generate income from a blog. Click Bank offers a wide variety of information products to sell. Before offering affiliate products, however, review the product’s quality and the product developer’s reputation. Large companies offer affiliate programs as well, such as 5% or 10% commission on everything sold through your blog or website. The key is selling a product that fits the demographic of readers. To find affiliates, visit Hydra Network, Commission Junction and Link Share.

Blogging can be very effective as long as business owners have the time or resources to hire the right people to write and manage the content. Many business owners take it upon themselves to research and update content as well as maintain a balance between using the right tone and effective brand messaging. This can be a challenge.

Essentially, blogs are a great way to build brands quickly and efficiently. Blogs enable business owners to interact with audiences while positioning themselves as experts. In some cases, blogs have grown into large sites where they generate millions of visitors per month and turn a profit. Bloggers have received book deals from major publishers and some blogs have even been bought out by another company.

If you do not yet have a blog but want to start one, check out How to Start a Blog.

Does your business have a blog? What are you doing to make it the next big thing? Do you have any tips for other bloggers?