Comments on: How to value a site

By: Watch Secret life of American teenager Season 2

Watch Secret life of American teenager Season 2 — Tue, 16 Dec 2008 09:59:20 +0000

Standard PE calculations are worthless. Valuing a blog is probably one of the most difficult things to do. Loads of hard work and time has been put in to develop it. So you just can not buy it away for a few pounds…

By: Pavi

Pavi — Fri, 07 Dec 2007 20:59:37 +0000

It is just amazing how traffic just keep building to your site. 2 Million is good money to do some other cool stuff. Cheers.

By: Bloggeries Blog Reviews » Blog Archive » Self Made Minds - Earning by Learning - Bloggeries Review

Thu, 24 May 2007 13:39:33 +0000

[...] take some time to go through some of their recent posts: “Well it works on my machine”, “How to value a site”, “Stumble on, and on, and on”, “Organic links and how to get them”, “Finding Traffic [...]

By: Al

Al — Wed, 16 May 2007 10:49:10 +0000

Thanks for the follow up David. I agree with you that blogs are very difficult to value and even blogs with negligible outgoings still require a fair amount of time to maintain or update which should also be reflected in any valuation IMO.
I’m not meaning to put a downer on your post as I enjoyed reading it and was honored to be on your hall of fame.

By: Al

Al — Wed, 16 May 2007 10:39:47 +0000

Thanks Chris, in what way is it rendering funny, it looks fine to me in IE.

By: David

David — Wed, 16 May 2007 02:13:12 +0000

Hi Al,

Businesses are valued on their earnings, and the assumption in the article was that blogs only have negligible expenses, so most of the revenue becomes profit. The model also did not account for taxes since most blogs are not incorporated and taxes are often taken at the personal income level. Of course doing a more precise evaluation would require reviewing an income statement which is something most bloggers do not post.

I think the biggest difficulty in assigning a dollar value to a blog is the fact that it is almost impossible to separate the blog from its author, so as an income generating asset it is not as liquid as a S&P 500 stock. Still, to generate an annual income stream in the same order of magnitude as your blog, an investor would need more than $2MM with a 7% yield.

Regardless of what your blog is really worth, this was a fun exercise and this kind of revenue definetely puts you in the pro league.

By: Chris Walker

Chris Walker — Tue, 15 May 2007 23:24:41 +0000

Off topic here. Just wanted to let you know that this post is rendering funny in IE6.

By: Scott

Scott — Tue, 15 May 2007 17:41:32 +0000

I dislike the idea of an across the board valueation model as well, there is no forumla as yet that can measure a sites worth as they are all too diverse in nature and so many different factors need to be calculated, I did almost sell my tattoo website a few years ago for £30k, thankfully it didn’t work out!

By: Al

Al — Tue, 15 May 2007 17:08:20 +0000

I’m always on the lookout for new sites, but some how I don’t think I’ll be basing price on a P/E ration any time soon

By: Mark Daoust

Mark Daoust — Tue, 15 May 2007 16:42:01 +0000

You wanna buy the home brewing site? I’m sure if we used the P/E ratio format we could come to a price that I would be very happy with.

Yes, a blog that has a lot of contributing writers would be a lot easier to sell, I did not think about that scenario…