When I was tired of CA, I moved to Chicago. I still love the Silicon Valley way of business though. Someone working at oDesk found me through a blog post around that time and then I started working with them as a client - remotely. They've been a great client, and having them didn't hurt in winning new clients.
I have the top hit on Google for "lump in mouth." The page gets about 25k hits a month, plus spun off into a forum, http://lumpinmouth.com I make some okay ad revenue from that.
I also have one of the top hits for "transfer itunes" from a blog post I wrote about a method for transferring songs, ratings, playlists from one computer to another. That also gets a lot of traffic, and I sell affiliate iPod utilities through a separate site I created. Additionally, I have been able to sign up direct advertisers.
Its funny when I think back to all of my friends who were confused when I started blogging "are you getting paid for it? Why are you doing this?" (you have to understand the Nebraska mentality) They couldn't understand doing something for pure enjoyment. Of course, I did end up getting paid.
Mike, I'm in Omaha now. You should come check out our scene sometime. Feel free to email me at matt@nimblelogic.com
And how much of your name-recognition is due to your blog, and how much is due to how much you comment on social websites like this? It seems to me your comment output far exceeds your blog output.
I would do fairly decently for myself if I did consulting full time, or at any appreciable fraction of full time, but that isn't where I want to be in my life.
What do they hire you for - SEO expertise or programming ability?
Most frequently, to do my "how you can use engineering to market software" shtick. Sometimes that involves SEO, sometimes it involves me programming, sometimes it involves me being a human being who is capable of talking to engineers and marketers without either side being unduly offended. 90% of programmers think they're in the top 10% of the profession -- I have no such illusions, so I typically tell folks that using me to program is probably not the most efficient use of their dollars.
As to the last question, I don't know. My professional life is sort of a package deal. Some portion of it is BCC, some portion blogging, some portion knowing people from around, etc.