Michael Arrington of Techcrunch.com is a Millionaire!

May 15, 2006 - Get free updates of new posts here

As much as people criticize or adore the articles and insights that come from Techcrunch I just realized that he makes bank. And by bank I mean he is raking in around $85,000 a month. This seems AMAZING for a person who writes on a blog also known as an online diary to generate that much money.

How does he make so much (he is smiling above from making so much money):

1- 4 Sponsored locations on the homepage

4 x $7,500 month = $30,000 month

2- Google Ads

Monthly Reveune = Unknown

3- FMPublishing advertisement sales on the blog Estimated monthly traffc 3 million page views

Cost per 1,000 page views

  • 120×600 ($20)
  • 125×125 ($10)
  • Text ad ($300 per week)

Estimated Revenue @ $5 cpm = $15,000 month

4- Consulting and venture sponsorship

Monthly Revenue = Unknown but a lot.

Total Monthly Revenue = ~$85,000+

Yearly Revenue = $85,000 * 12 = $1,020,000

A few questions this may rise. How accurate are these #s? How much action does he get from women with that bankroll? How did I think about ths ( I was bored and checked his advertising page which got me thinking). Why am I making $0 from my online journal? How can I make my blog make that much?

I don’t have answers to all of the questions but I know what helps Mike now stand out is he has a very valuable audience, is known for producing the news first and writes it in a way that most people can follow. What makes you unique?

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30 responses to “Michael Arrington of Techcrunch.com is a Millionaire!

  1. ari Reply

    god damn, your form lost my post the first time around. here’s the summary of what i was going to write:
    – actually the bottom two of the $7500/month ads appear to be unsold at the moment (omnidrive is run by a techcrunch writer so i assume the ad is free).
    – i think your numbers are in general erring a bit closer to what he hopes to make than what he currently makes.
    – despite all that, i’d be willing to bet that he’ll make more off of techcrunch than he ever makes from edgeio.

  2. Devin Reply

    Keep in mind it takes a lot of resources (read: expensive web hosting) each month to keep that site up. So, estimate a few grand a month for hosting.

    …but ya, that’s a lot of money.

  3. Brian Breslin Reply

    Its not THAT expensive to keep a site like that up. I’m guessing it can easily be done for under a grand a month. 2 dedicated servers w/load balancer are $750 or so.

    The guy was a high priced attorney for lots of tech companies during the bubble1.0 so he already had money to boot.

  4. James Gross Reply

    What is pretty crazy is that at $7,500/month with around 3 million page views/month, Arrington is only charging $2.50 CPM. That is very low for the targeted market and attentive readers that he has. (Not to mention great placement of the ads on the page)

    He could really turn on the money jets if he decided to moetize his feed. If i were him I would work out a deal with Feedburner to keep the redirect on, but allow Mike to put in custom ads that Feedburner would not get a share of. Even though this strikes at the core of Feedburner’s business, it is a great example of how a large client like Mike, that feedburner wants to keep on board,is not going to want share revenue on partnerships that Mike can set up by his own ad team. In the end, Mike converts a lot of people to feedburner and they would never want to lose that.

    So lets say that Mike can command $10 CPM for an ad in his feed. At 55,000 calls a day, that is $550/day or $16,500/ month to just put one ad in a feed.

    Mike needs to go public, get a CFO, and start running this business efficently. :)

  5. greg Reply

    I saw somewhere recently (where, dangit?!) Arrington saying TechCrunch takes in about $200/day from AdSense. Let’s say that’s for weekdays only and you’ve got another $52K/yr. Nice!

  6. Derek Punsalan Reply

    So do you think he drives a Civic?

    How much action does he get from women with that bankroll?

    Hey baby… I write an online diary that makes bank! Wanna feel the techCRUNCH?

    Yeah, he definitely gets what he wants.

  7. Hollyster Reply

    you make $0?! How can that be when you don’t have any wonderful sponsored links to click on or that most of your blogging audience is geared towards YOPOs (recently surviving college students) 😉 I think you need to put up a BIG ad…j/k I like it the way it is …. no punch the monkey ads… and it feels unsanitized (I mean it in a good way)

  8. Tim Swanson Reply

    First, regarding affiliates, be careful which ones you decide to link to. They could end up getting you hammered/penalized by search engines. Matt Cutts, an engineer with Google, recently posted about this: http://www.mattcutts.com/blog/indexing-timeline/ (scroll down halfway)

    Second, the way most “professional” bloggers succeed is by discussing a niche topic that they are an expert on. I’m not entirely sure what the corporate policy for blogging is at Facebook, but you could definitely leverage that position (the same way that Scoble does for MS, Jeremy does for Yahoo and so on). Aside from the odds and ends that Malik, Kedrosky and others find on you all, there really isn’t anyone focused on discussing Facebook stuff (L3 and Stutzman are not inside guys).

    If I were you, I would discuss social networking as a whole, comparing feature sets of MySpace, Orkut, Y360, MSN Spaces, etc. with that of FB.

    And don’t forget booth babes.

  9. Noah Kagan Reply

    Holly do you want goghetto to be the first sponsor of okdork.com? my site is not about making money but more the expression of ideas to stir discussion. i would not be opposed to letting a company who makes sense to my readers and myself having some placement on my site.

  10. McD Reply

    Mike Arrington does a lot of Venture Captial work too.

    Here’s one example:

    Dave Winer owned a weblog “ping” service run at a site called “weblogs.com”.
    Managing the site became difficult for Dave and he wanted to sell it to someone.
    He worked with Mike Arrington as his lawyer and a sale to Verisign was arranged
    at a selling price of $2.15M (as I recall).

    I’d expect Mike got some portion of that as a fee (10-20%?) for handling the negotiation and contract Terms and Conditions.

    So, evaluating his personal welath on the basis of the blog misses his main sources of income: legal work, Venture capital investing (he’s a prinicpal in Edgeio.com for example) and other clever ways to turn a buck (business consulting, etc).

    Most of what I wrote here is public information gleened from Mike’s and Dave Winer blogs.

  11. Joe Vandal Reply

    I foresee a future of paid posts.

    You do a review of a story in a category called say ‘business profiles’, the business gets 1 week free to see how fast you get indexed and searched for, then they pay a penny per visitor each month.

    Economic evolution in the blogosphere.

    http://www.idahofallz.com is where we are trying it out.

  12. Fez Reply

    Yeah, but just think of all those articles you have to write everyday.

    imho, much better to create a fully automated system, wait until it generates enough revenue to sustain itself + your lifestyle, then move to the Bahamas.

    – Fez @ ummyeah.com

  13. Anthony Reply

    If Michael Arrington does indeed make that much from the blog, then good for him. He does a great job spotlighting new startups good, bad and evil.

  14. Werner Reply

    Just checked his front page and his writing style is a real turn-off. Couldn’t maintain attention for a full paragraph.

  15. Ismo Reply

    Thats a nice way to begin is it with google adsense?? I started using google adsense 4months ago and I am doing good…doing between 150$-250$ a month if you can make 250$ a month its possible to make 15 000$ a month with alot more work…

    I have a blog thats speaks about time management and financial freedom…please have a visit

    http://dreamactions.blogspot.com

  16. K.B. Reply

    Of course you can make more adsense $ than 150-250. A friend of me has a site that make 1000$ a month. But for e.g. the price comparison sites or other sites with thouands of sites make a lot more. I’ve heard that a “well known social bookmark site” (with four letters) makes 8000 per day 😉

  17. Monchster Reply

    It’s incredible…. it’s just like Alex Rodriguez getting paid millions for playing baseball.

    Getting paid to do something you love…. wonderful feeling!

  18. josh liptzin Reply

    yea his wallet is getting fatter by the second these days especially with all the additional crunch verticles and things like his disrupt events (dont have to tell you how profitable tech events can be). good for him though, im a daily reader