We’ve recently received a private offer of $30,000 which got us thinking how much this blog was really worth to us. Besides the obvious advertising income per month, we found out that a popular blog can make so much more with indirect sales. We have been promoting our own product, GoogleTime.info for example and within a couple of days, we’ve made more than $1,000 with it – just over 50% of that was made via a promo post we did here. We’d normally have to pay a bigger blog plenty of moolah for a review, or spend tons of money on an adwords campaign to get that kind of exposure.
This blog’s average advertising income is about $3,500 per month, and that’s private ad sales only. If we have empty spots, we usually fill those up with affiliate deals which often make us more money than the regular ad sales! So yes, if you take the rule of thumb, where sites get sold for 10×12 times their monthly revenue, the $30,000 offer was pretty much dead on, and we’ve rejected it.
Sure, 30k is a lot of money to turn down, especially for a site that’s just over 6 months old. But if someone is willing to offer such an amount, it must mean they too see more potential in the blog. Besides, we’d get bored if we didn’t have anywhere to blog!
Here’s a few things we take into consideration if we look at the value of a blog;
1) Online Reputation – Your reputation and online presence will grow along with the growth of your blog. Reputation is very important when it comes to promoting your stuff online. The more people know you, the better your odds are when you’re offering them a product or service for sale.
2) Networking Opportunities – You’ve build up a brand and people want to be a part of that brand. You’ll receive invites for beta programs, free stuff to review and get invited to work on bigger projects with others. We’ve got a couple of the big boys on our IM list since we’ve started blogging and favors are being thrown around left and right.
3) Building Content – The longer you keep working on your blog, the more content gets added and in the course of time you will have build up a substantial amount of affiliate links. Subscribers who just read your new content might now see these anymore, but the search engine visitors will and they provide you with a nice passive income stream that keeps expanding. Take the eBooks and Tools section for example; that gets over 50 hits per day via search engines from people that are looking for things like making money online.
4) Influence – The bigger you get, the more influence you will get on the things around you. This links into point 1 and 2, the online rep and networking opportunities. No company want’s to get slagged by a well known blog because it means they can lose out on business. Chances are that that company will go the extra mile to make sure that the bloggers with the most influence get whatever they want. That’s where you’ll receive the freebies and discounts.
Obviously there’s more factors you can take into account when you’re trying to put a price-tag on your blog. Try to look ahead and see where you could possibly be in 12 months from now. Compare statistics with bigger blogs in your niche with tools like the Feed Analyzer and Alexa. See where they were a year ago and where they are now. If we’d manage to become as big as JohnChow or Shoemoney or even Problogger are now, within in a year, would the 30k have been worth it?