Stable Earnings Increase The Value Of Your Blog
By Matt Jones on Jun 26, 2008 in Blog Money
I’ve previously written extensively about selling blogs. However, I a point I have not touched upon is that stable earnings increase the value of your blog. I used to blog under the rather inaccurate impression that if I didn’t increase blog earnings enough during a month to justify the time spent on it I had been wasting my time. On the face of it that seems to make sense, but I had missed out the vital fact that every month of stable earnings on your blog dramatically increases the profit multiple that it will sell for.
Normal bricks and mortar businesses sell for a much higher multiple than blogs, usually because blogs are much younger and as a result have much less stable earnings. Often with a blog you find advertisers only to lose them again. The method that “if I can just get one advertiser to pay $100 this month I can sell the whole blog for $1000″ will be very rarely work. This gets more true as the numbers get bigger because buyers with more to spend tend to be smarter and understand the value of stable earnings.
This has been brought to the front of my mind due to a recent blog sale of mine which you can see here on SitePoint. The 4 months of stable earnings I had meant the blog sold for a high multiple.
Lesson
If you just manage to keep earnings the steady for just 1 more month you have increased your blogs value. Even if your subscribers, traffic, Pagerank all stay the same, 1 more month of earnings makes a big difference in the amount of money your blog will sell for.
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Hm… 12-16 times from the earnings. Thanks for sharing this. I’m also flipping blogs, although I mainly target the Turnkey web site section (I know it was inappropriately called flipping)
Thanks for sharing.
It amazes me how many people haven’t picked up on the money to be made in selling websites. There’s this huge perception that selling websites is dead. This is a great example of the fact that it ain’t dead.
I think a lot of people think that selling websites is all about the guy who sells beer.com for God knows what. $1200 is nothing to sneeze at, so great job.