Comments on: Buying and Selling Blogs: How Do You Value Blogs? http://www.chrisg.com/how-do-you-value-blogs/ the business of blogging and new media Sat, 20 Mar 2010 15:23:57 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Pinyo http://www.chrisg.com/how-do-you-value-blogs/#comment-5833 Pinyo Thu, 11 Oct 2007 18:38:55 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5833 Great article that covers the main element. I should have done this instead of letting the site die. I still have my domain name and it's still PR5; but nothing on it now so I doubt it has any value. Great article that covers the main element. I should have done this instead of letting the site die. I still have my domain name and it’s still PR5; but nothing on it now so I doubt it has any value.

]]> By: RT http://www.chrisg.com/how-do-you-value-blogs/#comment-5817 RT Thu, 11 Oct 2007 00:29:05 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5817 Yesterday I sold a year old fitness site for above $15k USD. I think the brand of the site was a huge factor in the sale. Yesterday I sold a year old fitness site for above $15k USD. I think the brand of the site was a huge factor in the sale.

]]> By: Surfin Dad http://www.chrisg.com/how-do-you-value-blogs/#comment-5812 Surfin Dad Wed, 10 Oct 2007 20:29:11 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5812 Very good point about fluke traffic. I was in the process of just starting my blog last week when I happened to post content based on a popular Google search. My pageviews soared and here at my 10 day blog birthday I'm up to over 2600 unique visitors a day, 2,991 page views, and 54 RSS subscribers. It caught me by surprise so I've been scrambling to get some content out there so I don't lose the momentum. Very good point about fluke traffic. I was in the process of just starting my blog last week when I happened to post content based on a popular Google search. My pageviews soared and here at my 10 day blog birthday I’m up to over 2600 unique visitors a day, 2,991 page views, and 54 RSS subscribers.
It caught me by surprise so I’ve been scrambling to get some content out there so I don’t lose the momentum.

]]> By: Joy http://www.chrisg.com/how-do-you-value-blogs/#comment-5810 Joy Wed, 10 Oct 2007 17:53:29 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5810 Great article!..I also started doing my blogs..for now my blogs' stats are not really high but I know with hard work I will get there...^^...soon! Great article!..I also started doing my blogs..for now my blogs’ stats are not really high but I know with hard work I will get there…^^…soon!

]]> By: fc http://www.chrisg.com/how-do-you-value-blogs/#comment-5808 fc Wed, 10 Oct 2007 16:03:29 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5808 something that i have been thinking about for quite some time now is how to measure the brand value for a blog... any idea on that chris.. how do you put a measure on say something like attention and loyalty something that i have been thinking about for quite some time now is how to measure the brand value for a blog…
any idea on that chris.. how do you put a measure on say something like attention and loyalty

]]> By: HASSAN' http://www.chrisg.com/how-do-you-value-blogs/#comment-5786 HASSAN' Tue, 09 Oct 2007 12:36:55 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5786 well for valuing a blog/site, there is no single rule. There are diff ways for diff kind of sites. You give us a very nice points to think upon. Thank you well for valuing a blog/site, there is no single rule. There are diff ways for diff kind of sites. You give us a very nice points to think upon. Thank you

]]> By: Scott Sehlhorst http://www.chrisg.com/how-do-you-value-blogs/#comment-5782 Scott Sehlhorst Tue, 09 Oct 2007 03:50:40 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5782 I've heard anywhere from 10x to 24x monthly revenue. Kevin makes a great point about the "cost" of sustaining a revenue stream. That can be modeled into a purchase price as CashQuest describes. Good article I’ve heard anywhere from 10x to 24x monthly revenue. Kevin makes a great point about the “cost” of sustaining a revenue stream. That can be modeled into a purchase price as CashQuest describes.

Good article

]]> By: raj http://www.chrisg.com/how-do-you-value-blogs/#comment-5780 raj Mon, 08 Oct 2007 21:12:43 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5780 Well put, Chris. Value is in the eye of the beholder. When I buy sites for myself, partners or clients, I know what they want out of it. For example, if someone mentions that they get $250/mth in paid review requests, it doesn't mean I'd value that for my use. That's not passive income (which you discussed recently). So know what you want, and what a site is worth to you. Then figure out what the site is worth to the seller and see if you can find something between. Well put, Chris. Value is in the eye of the beholder.

When I buy sites for myself, partners or clients, I know what they want out of it. For example, if someone mentions that they get $250/mth in paid review requests, it doesn’t mean I’d value that for my use. That’s not passive income (which you discussed recently).

So know what you want, and what a site is worth to you. Then figure out what the site is worth to the seller and see if you can find something between.

]]> By: CashQuests http://www.chrisg.com/how-do-you-value-blogs/#comment-5779 CashQuests Mon, 08 Oct 2007 20:55:57 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5779 I agree that RSS subscribers add value, but you haven't convinced me on comments. My research has shown that regardless of a blog's size, about 3% of readers leave a comment. Hence, the comment level flows proportionally to a blog's traffic and traffic is much more easier to value and measure accurately than comments. That's the reason you'll see things like "5% of visitors click on this ad" rather than "5% of commentators click on this ad". I agree that RSS subscribers add value, but you haven’t convinced me on comments. My research has shown that regardless of a blog’s size, about 3% of readers leave a comment. Hence, the comment level flows proportionally to a blog’s traffic and traffic is much more easier to value and measure accurately than comments.

That’s the reason you’ll see things like “5% of visitors click on this ad” rather than “5% of commentators click on this ad”.

]]> By: Erica Ross-Krieger http://www.chrisg.com/how-do-you-value-blogs/#comment-5778 Erica Ross-Krieger Mon, 08 Oct 2007 19:26:17 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5778 I've never bought or sold a blog or site, but I continually have people contacting me to try to buy the domain name I use for my blog. I happened to grab a good url back in the day -- 12 years ago-- and just held onto it. Finally last month I started to use it and began blogging. I enjoy it and for me that's worth more than I could sell it for. I haven't figured out how to determine the $$ worth, so for me I just keep telling those who ask that it's not for sale. I’ve never bought or sold a blog or site, but I continually have people contacting me to try to buy the domain name I use for my blog. I happened to grab a good url back in the day — 12 years ago– and just held onto it. Finally last month I started to use it and began blogging. I enjoy it and for me that’s worth more than I could sell it for. I haven’t figured out how to determine the $$ worth, so for me I just keep telling those who ask that it’s not for sale.

]]> By: Matt Jones http://www.chrisg.com/how-do-you-value-blogs/#comment-5777 Matt Jones Mon, 08 Oct 2007 16:41:13 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5777 I sold my old blog for $1000, which I considered a fair price at the time. It could have sold for a lot more if I had fully monetized it before hand, that way there would have been high earnings to boast about. I sold my old blog for $1000, which I considered a fair price at the time. It could have sold for a lot more if I had fully monetized it before hand, that way there would have been high earnings to boast about.

]]> By: Vyoma http://www.chrisg.com/how-do-you-value-blogs/#comment-5776 Vyoma Mon, 08 Oct 2007 15:55:18 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5776 Selling of blogs seems to be a common thing - but it can be quite a flop. Wisdump, blogged by 9rules fame, Scirvis, was sold to Splash Media (or something like that) and if my opinion is of any worth, has led to its '<a href="http://kmaheshbhat.com/blog/fall-wisdump" rel="nofollow">fall</a>'. Among other things, when blog is bought, an important factor is does the buyer recognize the direction of the blog and the readership. If this is misjudged, then what you have in your hand is a blog which has had great brand history, but a messy comment thread in the present. Selling of blogs seems to be a common thing – but it can be quite a flop. Wisdump, blogged by 9rules fame, Scirvis, was sold to Splash Media (or something like that) and if my opinion is of any worth, has led to its ‘fall‘.

Among other things, when blog is bought, an important factor is does the buyer recognize the direction of the blog and the readership. If this is misjudged, then what you have in your hand is a blog which has had great brand history, but a messy comment thread in the present.

]]> By: Kevin Muldoon http://www.chrisg.com/how-do-you-value-blogs/#comment-5775 Kevin Muldoon Mon, 08 Oct 2007 15:24:02 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5775 I don't think that 10 times monthly earnings can be used for all types of sites. I have a few sites which make me a few hundred a month and I never update them therefore I would be crazy to sell them for just 10 times the monthly profit. However, if a site was taking up all my time I would obviously be swinging more towards 10-18 times monthly earnings. With blogs it can be a bit more complicated as it depends how many people contribute to the blog - eg. it's much easier to buy a blog and keep earnings stable which has a lot of authors compared to a blog where all the posts were written by the same person I don’t think that 10 times monthly earnings can be used for all types of sites. I have a few sites which make me a few hundred a month and I never update them therefore I would be crazy to sell them for just 10 times the monthly profit.

However, if a site was taking up all my time I would obviously be swinging more towards 10-18 times monthly earnings.

With blogs it can be a bit more complicated as it depends how many people contribute to the blog – eg. it’s much easier to buy a blog and keep earnings stable which has a lot of authors compared to a blog where all the posts were written by the same person

]]> By: Chris Garrett http://www.chrisg.com/how-do-you-value-blogs/#comment-5774 Chris Garrett Mon, 08 Oct 2007 15:07:16 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5774 Comments are an indicator of community, not something that add value directly. I would take comments and subscribers together to form a view of if the traffic is pumped or actually a readership. Take two blogs, both with 30k uniques a month. One has a RSS count of 1000 and each post gets 5 comments on average, the other does not show any comments or RSS subscribers, which is more valuable? Either way you would have to investigate further but I would lean towards the one with a good subscriber count and repeat commenters. Comments are an indicator of community, not something that add value directly. I would take comments and subscribers together to form a view of if the traffic is pumped or actually a readership.

Take two blogs, both with 30k uniques a month. One has a RSS count of 1000 and each post gets 5 comments on average, the other does not show any comments or RSS subscribers, which is more valuable?

Either way you would have to investigate further but I would lean towards the one with a good subscriber count and repeat commenters.

]]> By: CashQuests http://www.chrisg.com/how-do-you-value-blogs/#comment-5773 CashQuests Mon, 08 Oct 2007 14:43:49 +0000 http://www.chrisg.com/how-do-you-value-blogs/#comment-5773 Comments add value? I don't think so as they can't be monetized. Purely from my experience, you value a site at about 10x it's monthly earnings. If it isn't being monetized - it sells for a lot less. However, it's true value will still stem from around 10x the money that could be made with it and that's how you flip under-monetized sites for a quick profit. How do you make money? Search engine traffic makes money through CPM ads, RSS subscribers make money through affiliate recommendations so it's just a matter of working out how much the site will earn monthly based on traffic numbers and usual sign-up rates. You also add a bit of value if the site "runs itself" and you don't have to do any work. But if you're buying a really profitable site, it's not too hard to outsource content creation and you just minus those costs from the overall price. Essentially, you just simply value it like any other business. Comments add value? I don’t think so as they can’t be monetized.

Purely from my experience, you value a site at about 10x it’s monthly earnings. If it isn’t being monetized – it sells for a lot less. However, it’s true value will still stem from around 10x the money that could be made with it and that’s how you flip under-monetized sites for a quick profit.

How do you make money? Search engine traffic makes money through CPM ads, RSS subscribers make money through affiliate recommendations so it’s just a matter of working out how much the site will earn monthly based on traffic numbers and usual sign-up rates.

You also add a bit of value if the site “runs itself” and you don’t have to do any work. But if you’re buying a really profitable site, it’s not too hard to outsource content creation and you just minus those costs from the overall price.

Essentially, you just simply value it like any other business.

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