The Content Compounding Method

evolution of content

I am sure you have heard about simple interest and compound interest.

If you have 1 lakh in cash and if you deposit it in a bank, you will get interest out of it.

Let’s say you are getting 7% interest on fixed deposit and you are withdrawing it every year.

If you do this for 30 years, your total money accumulated would be 3.1 Lakhs.

The principal of 1 lakh would have remained and you would have earned a total of 2.1 lakhs in interest over 30 years.

You would have got a interest of 7,000 every year.

Here’s how the math looks.

But with the same 1 lakh, there is a way to make much more money.

And that is by re-investing the interest that you earn every year back into the principal so that you can start earning interest on interest.

What if you do that for 30 years?

You will end up making more money… but how much more?

It is way more than you think!

This is more than double of the previous 3.1 lakh you would have made.

With compound interest, you would have made 7.1 lakhs.

If you do this for 50 years, with simple interest you would earn 4.5 Lakhs.

With compound interest you would earn 27.5 Lakhs.

With slight increases in the total length of compounding and the % growth per year, the numbers become mind blowing.

If you make the yearly growth 9% instead of 7%, you would make 5.5 lakhs in 50 years with simple interest, but with compound interest you would make 68+ lakhs!

So that’s the power of compounding.

And why am I talking about compound interest in a blog about digital marketing?

Because I have observed a similar trend with content marketing.

Every piece of content that I create is an asset which keeps bringing traffic over time.

Even this piece of article is an asset.

This article would be useful to someone who reads this even after 10 years. It is an evergreen piece of content.

Every piece of content including blog posts, ebooks, videos, courses, podcasts, webinars and so on is an asset.

Some news-type content pieces will have a lesser shelf life. Other content has a longer shelf life.

Evergreen content will bring a boost of traffic to start with and will keep bringing traffic to the blog for a long time.

For example, this post on how to become a self-made digital marketing expert was published by me around end of 2013.

It has been almost 5 years since I published that post.

This month, in 21 days, this post has got me 2079 page views.

This page has given me 150 leads this month.

Each lead coming from organic sources is worth 50 INR for my business on average.

That’s 7500 INR in profit this month.

For something that I created 5 years back!

As I keep publishing new articles on my blog, every content piece becomes an asset that yield traffic (instead of interest) for a long time.

With every visitor coming to my website, I have a chance to convert them into a subscriber and then a paying customer.

With paying customers, the revenue goes up. And profits go up.

But instead of taking the profits home, I will reinvest the money into more content.

That that’s content compounding.

Reinvesting the result from content back into more content creation.

Such a practice would lead to massive profits in the long run

I am not an expert at the money markets like SIP, Mutual Funds and stocks.

But I know how to create useful content, attract traffic and convert that traffic into revenue.

And I can follow the simple compounding formula that has worked for so many investors in the world.

Except I would be investing time, energy and money into content than buying stocks or investing in growth instruments.

Every great investor gives one major advice: Invest in things that you understand.

Warren Buffet has not invested in tech companies for a very long time because he is clear that he doesn’t understand it.

To become insanely rich, one does not need to know about everything under the sun.

One area of growth is enough for one lifetime!

Mine will be content compounding…

Would it be yours too?

Leave a comment below to let me know what you think about this method.

Cheers,
Deepak Kanakaraju

90 thoughts on “The Content Compounding Method”

  1. Hey Deepak , you may not be good in Money markets, but you are too good in understanding the value for money, that seems to be USP, that you are offering such good courses at an affordable price, which is real value for money.

    And Like Warren Buffet know the business he is investing you know the business of digital marketing and you are investing in it like him.

    Which will definitely have a compounding effect 🙂

    Reply
    • As expected. You have delivered a masterpiece yet again 🙂

      I would like to take this opportunity to thank you for the immense help that I received from your emails .The digital marketing course is super awesome and it motivated me to start my own wordpress blog.

      Now lets talk about this post. As I stated above that it is a pure masterpiece. It motivated me to invest more towards my blog and write quality content and I also understand the importance of investment(Financial)
      All the very best Deepak. Will be hoping to get more and more quality content from you 🙂

      Reply
  2. Deepak this content compounding method is already used by great marketers like Neil Patel, he buys popular websites to bring more traffic to his blog.

    Reply
  3. Hello Deepak,

    The idea of reinvesting in content is very good. I agree with you and more content can give us more traffic and more revenue.

    Reply
  4. Hii Dipak, once again an innovative teaching artical. Every business needs more n more investment as it s age. U know your business well and ofcourse your social duties also. Keep posting such a useful articals again n again.

    Reply
    • Hi Deepika,
      Myself is Mohan Sameer from Hyderabad. I am new to Digital marketing, I want to learn and earn money by affiliate marketing and content writing, can u help me out in this by sharing your thoughts.

      Thanks & Regards
      9553405806

      Reply
  5. Sir I don’t earn because I am a student but I save. Your content compounding method developed my interest in money making with the money in hand. Thank you for such a great article. It’s a guid for students like me.

    Reply
    • Hi Kanika Sharma,
      Myself is Mohan Sameer from Hyderabad. I am new to Digital marketing, I want to learn and earn money by affiliate marketing and content writing, can u help me out in this by sharing your thoughts.

      Thanks & Regards
      9553405806

      Reply
  6. Yet another informative article!

    Compounding of content works wonders for any brand, if it’s done in the right manner.

    Keep posting more awesome articles like this.

    Cheers,
    Ankith S

    Reply
  7. Grate method sir,you are very creative person..
    By creating high quality and ever green content we get huge traffic in long run..if traffic is coming then conversion is possible and by that we can earn affiliate sells and generated ads impressions too.
    That’s a grate method to invest money on content.
    Thank you for your amazing article.

    Reply
  8. Grate method sir,you are very creative person..
    By creating high quality and ever green content we get huge traffic in long run..if traffic is coming then conversion is possible and by that we can earn affiliate sells and generated ads impressions too.
    That’s a grate method to invest money on content.
    Thank you for your amazing article..

    Reply
  9. Very creative content.
    I like the way you crave everything here.
    I am learning everything, to write a very clear and understanding content like you.
    Thanks you.

    Reply
  10. Your idea is to make money in an honest way is simply great…You explained in a very simple way… more such things will be appreciated in the future…keep sharing

    Reply
  11. Hello Deepak,

    What you have explained is a basic truth, a common sense…but often common sense is a rare sense! With your guidance and motivation, many of us have started blogging. And we are patiently pursuing with the subject we have chosen.

    What we need from you now is your individual guidelines for drawing traffic so that we start earning. I know that with so many of your students, it would be difficult for you to give time. But may I request you to select a few in batches and guide them to achieve their goals.

    Please think on this and give your opinion.

    Thanks

    Bibhash Bhaduri.

    Reply
  12. Deepak ,

    You are only saying about the concept of “compounding principle” but not a word on ” content compounding method”

    Any price tag for the same ?

    Reply
  13. Good analogy! In case of money in compound interest you can not withdraw the interest,so that the interest is added to the capital. In simple interest you can withdraw the interest.
    In true economic terms simple interest is more beneficial because the value depreciation in say 30 years so much it offsets the compounding effect.Having said that, Yes, compounding as a concept adding incremental benefit to the principle is great. That is directly applicable to compounding content since your benefits rapidly appreciate.

    Reply
  14. Deepak being modest is god’s gift. Trust me your mails, blogs, learnings are all inspirational. I am not a techie,but through your lessons and blogs I am learning a lot. For someone who is 60 years young you truly are a good person.

    Reply
  15. Hi Deepak,
    I have gone through your article, and i found very interesting. I would love to read other article as well.

    Reply
  16. Bhai.. Kmaal (excellence),krte ho yar.

    Main ab tk.un words ko nhi update kr paya jo apko thanx kh paye

    Ur the the man
    Jisne mjhe financial freedom di

    Thanx bro

    Meri writing skills ko meri takat banane ke liye

    Reply
  17. It is so interesting and I never had an idea that the banking compounding interest can be written in compare with blogging.
    I saw, You always come with the new ideas and interesting posts.
    Thank you for the article!

    Ashutosh

    Reply
  18. Hey Deepak,

    Your analysis is very good. What you have written is true, every content we post is our asset, and it provides a return if they are unique & informative.

    Reply
  19. Thank you sir for sharing your great knowledge with all of us. I haven’t thought about that method. It’s an old method but you written in such a creative way.

    Reply
  20. Hi sir,

    I greatly admire you , I was thinking of making basic static websites for content writing since last five years atleast but the reasons not to start are all the same as you mentioned in your mails.

    Thanks for pushing up, finally stepped forward & subscribed 100days blogging course & chose to follow the dream.

    Reply
  21. That’s great .. This exactly called as Long Vision on Investment. This may be Money or Contents. Really much informative article. Thanks for sharing Deepak.

    Reply
  22. Dear Master,
    I’m your student.
    I’m very happy to see your blog in a new theme. But I like your ‘Gold Ratio Applied’ theme. That theme was very impressive and more comfortable to read.

    Reply
  23. Excellent Article Deepak sir. I really enjoyed reading it. I am just posting this comment to increase my backlinks. But I actually enjoyed this article too.
    My BLOG is heavily inspired by yours, so do check it out.

    Reply
  24. I am here for the very first time. Really enjoyed reading your post. Nice maths and well explained in the context of content marketing. Will surely follow your tips.

    Reply
  25. This article is wonderful! Loved it!

    The Financial Metaphor that has been used to make the point makes everthing crystall clear.

    For a newbie blogger this is extremely resourceful. Because the one mistake that newbies make is that they do everything but blogging. If only one creates more content on blog then overtime it will drive more traffic.

    Reply
  26. Hi Deepak,

    From Long time I tried to reach you but some times not able to get free from my work. but, now I have finally decided that I want to b an entrepreneur as you say always. I want freedom from my job. please tell me how I would contact with you.

    Reply
  27. Well written article. Keep up the good work.

    I have also started my own blog on Digital Marketing Informative dmdirection.com.

    Should you get a chance to visit it, let me know how I can improve the SEO !

    Thanks

    Reply
  28. This is why you shouldn’t be afraid to invest money into quality content that people actually want to read, and is also why you shouldn’t WASTE money on useless filler content that no one will ever read. Good content (such as this post I’m commenting on!) pays dividends in the long run – bad content doesn’t.

    Reply
  29. Wow! I really appreciate the fact that you have written on content computing and made it so clear, it is a different topic and very fewer people can write in a manner that everything gets clear.

    Reply
  30. Hi Deepak,
    As usual, you shared a very informative article here. I never imagined that any digital marketing article can be written by giving example of banking or money saving terms. I will also use this tips to create contents for my website devicetricks.com where I am sharing the tips and tricks to troubleshoot Android, Mac, Windows, Browsers and other technologies.

    Reply
  31. Hello sir,
    Stunning, what an article and idea like content compounding! I never thought this way.
    a debt of gratitude is in order for giving another vision to look towards content.
    Thanks.

    Reply
  32. Hello, love to read your article and get so much information through your blog and learn new things. You write very well, am amazed by your blogging, you will definitely achieve success.

    Reply

Leave a Reply to Keyur Verma Cancel reply