High Priced Blogs?

I was reading a blog post today in which the author talked about the high price of blogs and how expensive they are to sell (he noted that blogs regularly sell at twenty times the monthly revenue).

I feel the problem with trying to sell a blog is that you’re risking new ownership taking over the blog and hoping to keep it to the same level as the previous authors. Drop off from that level, and revenues drop too.

Of course for a collaborative blog, this may not be a problem, as you might be able to keep the writers, or find writers with similar styles.

It’s especially difficult though when you have a blog that is hosted by one particular person – especially someone having a very unique writing style and voice.

An example of this, the blogger mentioned JohnCow.com (not JohnChow.com), offered for $50,000 on SitePoint. This site has a very unique look and style, meaning it’s going to be very difficult for something else to just take it over and continue with it. And with a site going for 20x monthly revenue, you’re looking to keep up and running without interruption!

(And by the way, if – and it’s a big if – this factor holds true, this would mean that JohnCow.com, even with its unique writing style and look is only earning about $2,500 monthly. Contrast that with the original JohnChow.com, which recently posted $30,000 in monthly income – or $600,000 for the blog using the 20x calculation).

I’d debate whether 20 times is fair value – but it does highlight that if you expect the blog to continue to make money at the current rate, you’re looking at almost 2 years of blogging at the current income level to pay for the blog itself. I think that’s rather unreasonable, especially for something as mercurial as online websites.

Of course, I could be swayed – being offered 20 times the value of this blog’s advertising revenue certainly sounds better than two or three times!

Comments are closed.