ROI for Corporate Blogging?

June 14, 2006 · · Posted by Jordan Frank

Charlene Li questioned the math for calculating the ROI of Blogs.​ She wrote:

I tried to address this question recently in a speech at the New Communications Forum where I said my blog could be associated with $1 million of revenue at Forrester.​ I shouldn’t have tried to attach a number to my blog’s ROI because in the end, it’s a highly subjective, qualitative measure that’s hard to measure.​

The word "associated" is spot on.​ Charlene's blogging has some impact, positive or negative, on the revenue derived from her practice (and potentially others' practices).​ My vote is that there is a good answer to this question, or at least a range and an approach.​ The equation may look like the following:

Charlene's blogging value =

(Net increased (decreased) revenue from Charlene's practice +

Net increased (decreased) retained revenue (over normal baseline) from Charlene's practice)

* Share of blogging compared to other PR, Marketing and Sales activities.​

If her practice earns $1M in new revenue this year and retained $100K that would normally be lost, then a measurable portion (within a range, lets say 5% to 30%) of the $1.​1M is attributed to the blog.​

I blog internally as part of my work process, it's like drinking water.​ It's just how we communicate and build information resources.​

I blog externally to participate in what seems like a global collaborative experiment.​ E.​g.​ this post is part of a collaborative process with Charlene and at least 7 others who left comments and to increase my involvement in the global KM community.​

As a result of writing KM is the Forest, Enterprise Blogs are the Path, KM World contacted me about adapting the blog post into a presentation on Enterprise Blogs and Wikis at their annual conference this October.​.​.​ I can measure that.​ Return achieved.​