I recently had this as a guest post on Brian Aldrich’s BlogDuck and I liked it so much that I decided to repost it on my blog. So, have you ever though about how much money your blog could potentially be worth? Well, its an idea that most people don’t think about often and it is something that I have started to think about lately on my own blog. When you start a blog, you never imagine that you may have to sell it one day if it gets popular enough. For example, not too long ago Jane May from Jane May Blogs sold CareerRamblings for an impressive $20,000. That sounds like a good amount but was it really worth the time she put into it? Maybe it is, maybe its not. There are a few things that could decide the price your blog can fetch, so lets take a look at what some of those factors could be:
1) Google PageRank – Obviously, Google has been a little late on the PR updates for this go around but hopefully they will get to it soon. Either way, if your blog is PR3 then maybe your blog may not be worth as much as it would be if it were a PR5 or higher.
2) Technorati - As much as Technorati is fluctuating nowadays, it still plays an important role in deciding the price of your blog. Your Technorati has to be high enough to attract peoples attention enough to pay the price. Technorati actually sees the “blog reactions” or link backs you receive from other blogs and that helps in deciding how popular you are in the blog world.
3) Alexa – Alexa also plays an important role in deciding the price of your blog. It is probably a little more difficult to get your Alexa under 100,000 than it is to get your Technorati under 100,000. For my blog the Alexa is at 82,000 but it has taken 5 months to get it there however, Technorati has been under 20,000 for the past 2 months. Alexa is also harder to get added to but if you run the link report for your blog through Alexa, I have seen that you get added faster to Alexa if you aren’t already listed.
4) RSS Readers/Traffic – This is pretty important too as the potential buyer may want to know how much traffic the blog gets on a daily basis because traffic converts to money and if you aren’t already monetized, they want to know how much their possible earnings can be. RSS Readers and Traffic also are a signal of your popularity and usually people do not include the Feedburner Chicklet if the number of subscribers isn’t over 50. Either way, RSS Readers and Traffic are important to keep any blog alive because without readers, you dont have an audience willing to hear what you have to say.
5) Money your Blog Makes – This is probably the most important aspect if your blog is monetized. If it isn’t monetized then the potential buyer would need to assess how much money the blog can generate. The whole idea is that people want to know their “break-even point” and “Return On Investment (ROI)”. What do these mean? Well, break-even point is the time at which the price they paid for the blog is recouped. For example, if they pay $1000 for a blog that generates $200 a month on average, they would expect to have recouped their money within 5 months ($1000/$200 = 5 months). ROI is the percentage of return they earn on their investment in a year. Lets continue with the same example, in this case if their ROI would be 240% ( $2400 a year / $1000 initial investment = 2.40 or 240%). It may sound a little complicated but it is definitely something worth considering if you are going to purchase a blog.
Anyway, I hope you have seen some of the factors that can affect the price of your blog. It is essential to note that money isn’t everything and you could also be just as happy owning a non-monetized successful blog. However, considering most of the blogs out there are “Make Money Online” blogs, this information should be insightful to most of you. Hope you enjoyed this post and let me know what you think! Thanks for reading!