Why Blogs aren’t Businesses
My favorite story in the Rich Dad book series is the story about the town that needed water brought in from a couple miles away. They awarded the contract to two entrepreneurs, just to ensure a fair market.
The first began to haul the water in the largest pails he could carry and had an immediate profit selling the water at a good price. The second went away and designed a complex pipeline system. For the first six months he had no revenue and no-one knew what he was up to. But when his system was built, he could charge a fraction of the price of the first entrepreneur. And his system operated 24 hours a day with minimal upkeep.
It’s clear that the point of the story is to build systems rather than business that are tied to a particular person’s talents.
Lately I have been concerned about the quantity of work involved in blogging for money. My current hero is making some very good money from his blogs, but claims that it is his goal to publish 25 stories a day. I’ve seen him apologize to his readership for not posting for 24 hours. These businesses thrive from a constant stream of content, and the problem is that that content is tied to one person’s voice.
Rich Dad’s definition of a successful business is that you should be able to leave it for a year and it will be worth more when you come back than when you left. Martha Stewart recently became a billionaire (again!) while she was in prison. Personally i’d prefer to be on an island in the Mediterranean, but the principle is the same.
I love this website but it’s not a real business. A business is a system that can be done by anyone. The only way to have this site function as a real business would be to farm out the article writing. That is not going to happen for this site, but for others that I have in mind, it is a possibility.