This guest post is by Aman Basanti of ageofmarketing.com.
Billionaire Warren Buffett’s method of deciding which companies to buy and invest in is not only instructive for share investors, but also for bloggers. His strategy can be used in the blogging world to create a successful blog—especially instructive for bloggers who are short on time and need to make every post count.
Buffet’s “Durable Competitive Advantage” concept
When Buffett analyses a company for potential, he looks for what he calls a “durable competitive advantage.” A durable competitive advantage is a unique product that has a strong competitive advantage in the market and does not have to change over time. In other words, he looks for a product that he can profit from over a long period of without changing it much.
Coke, for example, has a durable competitive advantage because it does not change over time. The same can be said for Budweiser, DeBeers Diamonds and OPEC. A car manufacturer, on the other hand, does not have a durable competitive advantage because cars change in design every few years.
Companies with a durable competitive advantage like Coke enjoy the following advantages over other companies:
- They spend fewer dollars on research and design.
- They do not need to retool their production line to cater for new models.
- They have a long life span in the marketplace.
This means that more money is available for profits and re-investment, allowing more to be achieved with less.
Applying Buffett’s principle to blog strategy
Buffett’s strategy is a great strategy for time-deprived bloggers. Simply put, it states that rather than buying companies that have time-sensitive products—or writing posts that are time sensitive—buy companies who products are evergreen—or write posts that are evergreen.
Rather than building a news site, which is what many bloggers do, build a resource. Build a source of information for your chosen topic. Write posts that focus on principles rather than techniques. That way your posts will be as relevant in four years as they are on the day you write them.
On my blog, for example, all the posts are about principles of consumer psychology. Each post adds to other posts and completes the overall picture. When I am done, I will have covered most of the principles of consumer psychology.
Exceptions to the rule
This does not mean that you cannot write about time-sensitive topics. You absolutely can and should from time to time (topical posts can bring you a spike of traffic in a short period of time). But the bulk of your blog should comprise of posts that are timeless. This way, if you are only writing one or two posts a week, you are making every post count not just for that week but for months and years to come.
If your skill lies in acquiring and communicating breaking news and trends, this strategy is not optimal for you. Similarly, if you can find ways to generate a lot of content quickly through crowd sourcing (think Huffington Post, Wikipedia, and ProBlogger), this strategy is not necessary for you. If you have the time, skill and strategy to write time-sensitive posts, by every means do so.
But for the rest of us, who are short on time and need to get the maximum mileage out of our posts, concentrating on evergreen content is a winning strategy.
As Buffett once explained, “There is a huge difference between the business that grows and requires lots of capital to do so and the business that grows and doesn’t require capital.”
Translated into blog strategy, this means there is a huge difference between the blog that requires breaking news to stay relevant and make money, and the blog that grows because its posts are as relevant today as they were two years ago.
Which strategy do you use on your blog, and why?
Aman Basanti has written for a number of A-list blogs including ProBlogger, MarketingProfs and Business Insider. He shares his secrets to getting guest posts on A-list blogs in his new FREE e-book – Guest Posting Secrets: 25 Tips to Help You Get More Guest Posts. Visit Ageofmarketing.com/guest-posting-secrets to download it now for FREE (No opt-in required).