How Much is a Blog Network Worth?
SplashPress Media, a network of blogs and blogging related products and services, recently had a contest to ask how much a blog network was truly worth. (I was a partial winner of the competition) A few good questions were raised in the debate of how much a blog network should truly sell for.
In my response, I said that a network should be worth the amount that was spent to design and create the websites/products themselves as well as a multiple of the monthly revenue earned from each website. I also said that the cost should take into consideration how popular a blog is in its niche by using some barometer such as Technorati Rank. In addition, web properties that were social networks or required users to create an account could be valued by multiplying the number of users by a given dollar amount. Large social networks these days are being valued at as much as $70 per unique monthly visitor.
Other important points brought up were the value of the people who run the network. This is an important point as the most important asset any business has is the people who work there. As a result, in a potential acquisition it is vital to show who will be staying and company and who will be leaving and taking into consideration each employee’s value to the company as a whole. This is especially true with blogging were reputation is everything. It was also brought up that a blog network is more stable than just one or two blogs and thus should command a higher price and that recent company growth should be taken into consideration. The winners were announced here.
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