In closing may I call your attention to the value of our US dollar? Please note the devaluation is caused in part due the International Monetary Fund which stated early this year their intent to devalue the dollar by 20%. Please note the Federal Reserve is not federally owned by privately owned by a group of small investors or “Money Families” Please take the time to learn the truth about our dollar and call your congressman and senate to demand an end to the federal reserve.

If you review history you will note we never had to worry about inflation but when the Federal Reserve started to suck our dollar and devalue the value we have had inflation, depression, hyper inflation, etc. The very issues the fed is supposed to protect our economy from.

As it happens, there’s only one person I’ve heard of who has quantified their willing to accept price – and you read it here last week!

Cheers,

-Greg.

I’m sorry if this seems like comment spam, but I just wanted to let you know since blogspot doesn’t support trackbacks. :)

Here’s the url of the article: http://zoints.blogspot.com/2005/11/website-buyouts-put-price-of-average.html

Clearly, this estimate doesn’t apply to your typical blog, and as far as I’m concerned, using Chitika and AdSense qualify as fairly cushy deals. I mean, who starts a SINGLE blog and expects to break the bank?

The point is: there’s no way I’d pay anything near $24,282 for my blog. Would I sell it for that much? Probably not. I mean it’s my personal blog, it’d be pretty useless without me.

I’d prefer it if it was $38 per users eyeball….easy way to double the money :-)

A one-man business is worth nothing compared to a large network that would be sustainable even with it’s head chopped off.

The sum is worth much more than it’s individual parts, and allows for much greater long-term leverage.

The netwroks being picked up are in no way micro-managed, they could each through organic growth double in size each year.

I doubt most blogs if sold would realize more than 6 months revenue.

The best advice I’ve heard recently was Jason C who said don’t build a web asset up to sell/flip – instead build a income stream. I think this applies here.

Don’t make your primary goal to get to XXXXXX visitors per day or month – this guarantees nothing in terms of a sale. What people buying up websites are looking for is revenue streams and sites with traffic that can convert into sales, ad revenue or some other benefit (usually with a $ bottom line).

Still – it’s fun to dream.

Fun as it is to contemplate $38.00/u/ day or 300,000 times call it $40.00 for a monthly value of 12 million, I look at my revenue numbers and know two things. First, I’d be insane not to sell at that price. Second, just not quite as crazy as the person willing to buy.

A more realistic mental evaluation is this – lets say you make $1000.00 per month from your blog. At current interest rates – say 3% – how much money would you have to have in the bank to equal that return? Call it $400,000.00 and you would be about right.

Now, do the same equation but demand that the value of the equity and the amount you make double every six months….there are no bank accounts which do that. Google shares have done the first part in the last year; but with no income to the shareholders.

Plus, and here is the key part, other than your time, what else have you invested? Most blogs are started with an investment of, well, zero. Which means ROI is effectively infinite.

Last, if you take a look at your time, and you want to have a little fun, along with the $ per month/hours add the month over month increase in equity. On the two blogs I am writing about I have seen a theoretical $100,000 a month increase in my equity on my more conservative projections. My paper per hour earnings, as these blogs take me an hour a day, are staggering….Now if I could just find a buyer.

Expressed another way, I think the available advertising dollars has just begun and the advertising models we have may be their infancy. I haven’t thought enough about the $38 number- but remember that takes into consideration the present revenue and discounted value of the future. As Darren says, some blog content is worth much more than others.

As some have said, the blog author is important for some blogs and I would want the author on board for six months or a year-through a contract- before purchasing. Otherwise it is just a domain, a title, and an archive.