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My hosting provider (GoDaddy) offers integration with Wordpress. The way I did it is installing Wordpress in a separate directory in MySQL and creating a subdomain for the blog.
The subdomain pointing to my blog is http://blog.outcastgirls.com
You can also go to wwwoutcastgirls.com and then click on BLOG.
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Perhaps the developers can address this question... My knowledge is limited to setting up an external blog that shares the same domain.
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With a bit of imagination, and work on templates actually quite simple:
example:
Shop: http://www.vintagemovieposters.co.uk/shop/
Blog: http://blog.vintagemovieposters.co.uk/
* install shop
* install blog
* do the work in the template (meaning, put links from shop to blog and from blog to shop)
* if the templates are good enough, the users wont know that they are looking at different products.
The nature of the blog is to get well referenced in search engines. So the idea is that visitors are interested in what you do and you encourage them to click thru to the shop. (Visitors to the blog should be easier to convert)
Another example:
* http://blog.deependpools.co.uk/
Similar example, but with a main website made with the Expression engine (blog based CMS) to explain the benefits of the product: http://www.flexidryshop.com/
http://www.flexidry.com/
No point in getting Kryptronic to develop a blogging engine. Wordpress is just so advanced and keeps getting better and better. Also wordpress is simple to install. (The only downside is that you must keep it updated)
Other ideas:
* twitter feeds
* you tube
* and pull into the shop using widgets. (cracking widgets can be made at http://www.widgetbox.com/)
The blog aspect is only a small opening into getting social media working for your shop.
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and oh, keep your blog out of the shop domain. Set it up as a subdomain. blog.yoursite.com. Do this for security reasons. If one gets compromised, the other will stay up. (Again the templates can hide the fact that you are using different URLs)
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