I found this great quote on someone else’s blog a couple of months ago, but because of scheduling etc. I didn’t have a chance to finish this post until today. The original url of the quote is: http://hotblogtips.com/is-your-blog-a-business but that particular blog is no more.
Whoever owned that domain before the current people deserves credit for this quote. Unfortunately, I didn’t write down the person’s name thinking that I could just go back to the site and get it when I needed to whenever I came around to actually writing this post.
The question that he was exploring, is precisely the one that I wrestle with all the time: Is your blog a business? Here’s his answer:
To sum it up, I feel like your blog is a business only if it is purely informational and your sole income comes from advertisers. If you blog to gain influence, promote your products and services, and sell other products then I think the blog is a tool for your business, not actually the business.
I totally agree with this. I used to think, that all it took was a blog. I’ve learned that it takes much more than that.
A blog in and of itself, does not a business make. At best, like the car in the picture, the blog is a business tool.
By the IRS’s own definition, a business is a profit seeking enterprise. As such, the business will have income/ revenue from whatever sources and expenses/ liabilities to pay out. At the end of the day, the IRS expects your business to take in more money than it spends, ergo, show a profit.
Unless your blog makes enough money to pay you a profit, and you run it in accordance to what IRS expects a profit seeking enterprise to run like, you do not have a real business if all you have is a blog. You have a hobby, and a rather time intensive one at that.
There’s nothing wrong with having a blogging hobby, just remember that you need to make money to pay the bills somehow. Whatever pays you money, is your true business, regardless of whether you work for yourself or for someone else.