What is Your Blog or Business Worth, Part 1
Thursday · Popularity: 66% · valuation
This question comes up quite a bit, but when you are talking about individuals businesses or blogs, not a corporation, the simple answer is, probably not as much as you think. Certainly not as much as you have put into it.
One of my favorite things to watch is Buy it Now prices on eBay and personal items people put up for sale, like their car or motorcycle. I have this GREAT thing, I paid $5,000 for it, used it for 5 years, it is in perfect, brand new condition and here it is for sale for $5,500, great deal. What we deem as precious and important to us, really only has a value of what someone else is willing to pay.
I am going to examine this question in a series of posts since it can be quite a long subject. In this post I will look at a few variables in determining value to your business, asset, blog, online property, or other digital assets and what it might be worth if you want to sell it.
Value is Determined by Someone Else
As I mentioned above, the value of something is not really determined by you at all. How much something is worth depends on how much someone else is willing to pay for it. If you think something is worth $5,000 and someone else is willing to pay $10,000, then it is worth $10k, and of course the opposite is also true.
A good example of this is the current fire sale of blogs. At first, the money making seo blogs were said to be worth bundles. Then as a few were sold off, the value of each was shown, to be what someone else was willing to pay for it. There were, and are, several metrics that bloggers decided each blog was worth and gave it value, but most went by a price per subscriber of about $15.
All of this came to mind when I read, A Difficult Decision - BloggingExperiment.com For Sale, a nice blog which I have read for some time. All of sudden the for sale sign went out. It was up for auction, but has since been sold for an undisclosed amount, but the seller / owner (Ben) was looking for “5 figures”, which is about in line with the price per subscriber listed above. That would make the sale about $13,500 (that is according to the calculation above, I have no knowledge of what it actually sold for).
If we just stay with the guesstimate above as an example, Ben was doing a year long experiment, which he was 265 days into, when he decided to sell his blog. Since he sold it, I would assume he got a price he was willing to accept. If it was my guess above, that comes to about $51/day, or about $6/hour if you go on an 8 hour day, or approximately $18,000/year. But, it is only worth what someone else is willing to pay for it, and sometimes that is better than what we know it is worth.
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