Once a Mission Statement has been developed to guide content creation (please see the previous article) it is well worth taking the time to perform a cost/benefits analysis. CBA is a simple tool used to map all of the costs and benefits involved in a new project or even an existing one. It is a table with all associated costs on one side, and all benefits on the other, and should produce a breakeven point, or an idea of when extra costs will be met by increased revenue.

When developing a Strategic Content Plan it is important to consider all of the costs and benefits involved, as content can become an expensive area. Whilst it is important to include as many dollar amounts as possible in the analysis, some items, such as time or hits an be difficult to estimate. The important thing is that you try to provide as accurate as possible figures, as it would be a disaster if your figures were off and an action seems more, or less, profitable, than it really is. Also do not underestimate the intangible costs and benefits (again time is often one of the most important.) Here is the cost benefits analysis for www.wonderwidgetsarethebest.com, which is hiring two content writers who will provide 2 articles per day and will also post 50 posts in the forum each day.

Therefore we can see that the costs are $41, and the benefits are $40.51, however, one important benefit has been left out, and that is the values of the increased content in generating more traffic, which will increase both Adsense and Sponsor revenue in the future. I would make a judgment call here (and of course my time freed up would be spent on marketing my site as well) and deem that hiring two writers would benefit me over all.

For more details on CBA see Mindtools