A Few Problems Blog Advertising Networks Face

Last month it came as a surprise to many when Ben announced that CMF Ads would be closing effective October 30.  I think CMF Ads is three years old or close to it.  The reality is anyone starting a blog advertising network has a lot of long hours and hard work ahead of them.  Most who start a blog advertising network were are are bloggers themselves which does not always equate into having good business sense.  There is a large initial outlay of expenses to get a blog ad network up and running.  Even with the generous help of volunteers, friends, and relatives working for free the cost may still be prohibitive and there's guarantee of any kind of payback.  Many bloggers will not pay for advertising or if they do it is a pittance of what is necessary to run an advertising network.  They are quick to complain if the widget or site doesn't work properly and fickle about their loyalty.  At the first sign of problems many bloggers will simply move on to another ad network resulting in a further decline of the network they left behind.

It would be extremely hard for one person to run a blog ad network given that it needs to be up and functioning properly.  They need to approve new members, check for TOS violations, and in short keep a good working relationship with their publishers and advertisers.  They need to deal with any problems swiftly while listening to their clients wants and needs, adapting and updating as necessary.  They need to be available 24/7 or at least have someone who can deal with problems as they arise if they are not available.  In this poor economy, unless one is working home it would be quite difficult to run a blog ad network.  Even if they are working at home they aren't getting paid much for the work they have to put in.  The bottom line is a blog advertising network is a business and the only way to stay in business is to make money!  Many bloggers are trying to make money not spend it so paying for advertising is at the bottom of their list of priorities.  That ultimately means any blog ad network is in for a long struggle just to make ends meet as well as justify the time spent.  At some point, the network has no choice but to close.

Garden Gnome
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