How Much is Your Blog Worth?
January 5, 2008
Stumble it!There are many bloggers that start blogging and then they decide to sell their blog after some point of success. I am not against that but what I am against is when this blogger sell their blog with a value that is not really worth (less or more). Many webmaster follow the strategy of 10x or 5x what they earn per year. For example; if my blog have a revenue of $100,000 per year they sell it for $500,0000 or sometimes for 1 million dollar. Which I think this is totally wrong. The revenue of a blog has a lot to do with how much your blog is worth but is not enough.
If you are an active in the blogging community you already know that the last few months there have been some blogging sales and people started to focuss on the RSS subscribers. It seems that the same bloggers said that each RSS Subscriber is worth approx. $30-$37. In my opinion focussing just on RSS subscriber is also wrong.
I was reading in many forums and blogs and what people start to question is: “How much you earn from adsense”. That is also wrong focussing just with adsense earnings. On October I wrote an article about Purchasing a website depending on Adsense earnings? and mentioned some good points in case you are one of them. But buying or selling a blog is more than an adsense or RSS subscribers. There are many factors that you have to focuss:
- How the blog get traffic? From paid advertising or natural traffic?
- How old is your blog?
- How many loyal readers your blog have?
- How good is the rankings of your blog?
- How much your blog earns per month. Is important to check previous months (at least 12 months)
- Is your domain easy to remember?
- If you are the buyer, could you write in the same “style” of the current blogger?
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January 5th, 2008 at 11:42 am
I don’t know how a blog could be worth money if it is based on a personality of the owner. Remove the owner then what do you have?
January 6th, 2008 at 2:43 am
I have seen a few popular blogs sell recently.I think it would be hard to keep the traffic coming after buying a blog since the owner its readers were use to is gone.
Just my thought. I will have to have a look at some of them to see just how they are doing.
January 6th, 2008 at 4:08 pm
Everyone has correctly noted that the “signature” of the original blogger may be difficult to duplicate if that person is no longer involved.
As more blogs are sold, the appropriate valuation methods will become more clear. Using some multiple of revenue or profit is a very common valuation technique. 1 -2 times revenue or 5 - 10 times profit (as you noted) are fairly typical ranges. Traffic/subscribers is primarily an indicator of potential revenue so in that respect, either of those methods may provide good valuations.
Ideally, you would use several different methods to derive a valuation range for the blog of interest. Also, you would want to look at sales of comparable blogs if available. After that, the price is simple a matter of negotiation between thte two parties.
January 7th, 2008 at 2:49 pm
@Collin; if the buyer is better than the old owner it can be really worth.
@steven; that depends on the buyer if they really want to keep the blog good in quality. Some of them buy them thinking that is “auto” and they don’t make an effort to keep it good.
January 8th, 2008 at 1:44 pm
I would not ever have to sell my blog, it will mean that it works!!!