Comments on: How To Buy A Blog Step 2: Assess the value of a Blog http://www.thefinancialblogger.com/how-to-buy-a-blog-step-2-assess-the-value-of-a-blog/ This is where your finance takes place Thu, 09 Feb 2012 14:46:06 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Buying Blogs – Selling Blogs – How I Built My Blogging Business | Financial Samurai http://www.thefinancialblogger.com/how-to-buy-a-blog-step-2-assess-the-value-of-a-blog/comment-page-1/#comment-12451 Buying Blogs – Selling Blogs – How I Built My Blogging Business | Financial Samurai Wed, 21 Jul 2010 13:59:21 +0000 http://www.thefinancialblogger.com/?p=2587#comment-12451 [...] [...] [...] [...]

]]> By: The Financial Blogger http://www.thefinancialblogger.com/how-to-buy-a-blog-step-2-assess-the-value-of-a-blog/comment-page-1/#comment-8452 The Financial Blogger Fri, 08 Jan 2010 01:31:46 +0000 http://www.thefinancialblogger.com/?p=2587#comment-8452 FS, you have a pretty decent blog, if you want me to do an assessment, send me an email at thefniancialblogger at gmail dot com :-D FS,
you have a pretty decent blog, if you want me to do an assessment, send me an email at thefniancialblogger at gmail dot com :-D

]]> By: The Financial Blogger http://www.thefinancialblogger.com/how-to-buy-a-blog-step-2-assess-the-value-of-a-blog/comment-page-1/#comment-8451 The Financial Blogger Fri, 08 Jan 2010 01:30:26 +0000 http://www.thefinancialblogger.com/?p=2587#comment-8451 cost of labor is something pretty hard to assess. At one point, you can't write for 5 blogs, therefore, you will have to be able to pay for a good writer to keep up with the blog. This could reduce your profit considerably! but still, 2X yearly revenue is pretty cheap! cost of labor is something pretty hard to assess. At one point, you can’t write for 5 blogs, therefore, you will have to be able to pay for a good writer to keep up with the blog. This could reduce your profit considerably!

but still, 2X yearly revenue is pretty cheap!

]]> By: Financial Samurai http://www.thefinancialblogger.com/how-to-buy-a-blog-step-2-assess-the-value-of-a-blog/comment-page-1/#comment-8450 Financial Samurai Fri, 08 Jan 2010 01:16:48 +0000 http://www.thefinancialblogger.com/?p=2587#comment-8450 Four Pillars - Good point, so then if I sell for 2X yearly revenue, then I don't have to do anything... but what's the fun in that? 5X yearly revenue minimum or bust! :) Four Pillars – Good point, so then if I sell for 2X yearly revenue, then I don’t have to do anything… but what’s the fun in that?

5X yearly revenue minimum or bust! :)

]]> By: Four Pillars http://www.thefinancialblogger.com/how-to-buy-a-blog-step-2-assess-the-value-of-a-blog/comment-page-1/#comment-8449 Four Pillars Fri, 08 Jan 2010 01:14:56 +0000 http://www.thefinancialblogger.com/?p=2587#comment-8449 FS - you are forgetting about the cost of your labor. If the site is making $1000 per monthindefinitely without doing any posts or work on it, then yes - it would be worth far more than $24k FS – you are forgetting about the cost of your labor. If the site is making $1000 per monthindefinitely without doing any posts or work on it, then yes – it would be worth far more than $24k

]]> By: Financial Samurai http://www.thefinancialblogger.com/how-to-buy-a-blog-step-2-assess-the-value-of-a-blog/comment-page-1/#comment-8446 Financial Samurai Thu, 07 Jan 2010 22:48:03 +0000 http://www.thefinancialblogger.com/?p=2587#comment-8446 Thanks for the thoughts TFB. Out of curiousity, who in their right mind would sell their blog for LESS than a 24X monthly revenue multiple? If I'm making $1,000/month, all I gotta do is last 24 months to get to $24,000. It can be worth $12,000/yr for YEARS, if not much much more as transaction and content grows. Hence, I may consider selling my site for maybe 60 months of income, but not less for now :) Do you mind visiting my site and assessing it? The one thing I enjoy about my site is the prolific amount of user comments. It's a pretty loyal community, and the average amount of comments range from 20-40/post. Thnx! Thanks for the thoughts TFB.

Out of curiousity, who in their right mind would sell their blog for LESS than a 24X monthly revenue multiple?

If I’m making $1,000/month, all I gotta do is last 24 months to get to $24,000. It can be worth $12,000/yr for YEARS, if not much much more as transaction and content grows. Hence, I may consider selling my site for maybe 60 months of income, but not less for now :)

Do you mind visiting my site and assessing it? The one thing I enjoy about my site is the prolific amount of user comments. It’s a pretty loyal community, and the average amount of comments range from 20-40/post. Thnx!

]]> By: Dividend Growth Investor http://www.thefinancialblogger.com/how-to-buy-a-blog-step-2-assess-the-value-of-a-blog/comment-page-1/#comment-8439 Dividend Growth Investor Thu, 07 Jan 2010 19:25:49 +0000 http://www.thefinancialblogger.com/?p=2587#comment-8439 Wow 24 times monthly earnings? That's equivalent to a yield of 50%! Of course the drawback is that you have to keep posting quality content. Which is why I never write about mesothelioma ;-) Another drawback probably is that you have to get a quality writer if you want to create a scalable business model. Which basically means that selling a blog for 2 times revenues ( not earnings) is a decent price to pay. In comparison JNJ currently trades at about 2.7 times sales. Wow 24 times monthly earnings? That’s equivalent to a yield of 50%!

Of course the drawback is that you have to keep posting quality content. Which is why I never write about mesothelioma ;-)

Another drawback probably is that you have to get a quality writer if you want to create a scalable business model. Which basically means that selling a blog for 2 times revenues ( not earnings) is a decent price to pay.

In comparison JNJ currently trades at about 2.7 times sales.

]]> By: The Financial Blogger http://www.thefinancialblogger.com/how-to-buy-a-blog-step-2-assess-the-value-of-a-blog/comment-page-1/#comment-8438 The Financial Blogger Thu, 07 Jan 2010 17:52:51 +0000 http://www.thefinancialblogger.com/?p=2587#comment-8438 I would say that 12-18 months would be for a smaller website or a smaller that doesn't have income consitency, or not great traffic source (social bookmarking). 18-24 is more for bigger and well established websites. You may even have to pay for a premium depending on the site quality. I would say that 12-18 months would be for a smaller website or a smaller that doesn’t have income consitency, or not great traffic source (social bookmarking).

18-24 is more for bigger and well established websites. You may even have to pay for a premium depending on the site quality.

]]> By: Four Pillars http://www.thefinancialblogger.com/how-to-buy-a-blog-step-2-assess-the-value-of-a-blog/comment-page-1/#comment-8437 Four Pillars Thu, 07 Jan 2010 13:50:15 +0000 http://www.thefinancialblogger.com/?p=2587#comment-8437 I like your guidelines, particularly about looking closely at the specific income streams and trying to determine if they will last. Not sure about the 12-24 months range - that's a pretty big range!! Verifying numbers (paypal, adsense etc) is also a good idea. I like your guidelines, particularly about looking closely at the specific income streams and trying to determine if they will last.

Not sure about the 12-24 months range – that’s a pretty big range!!

Verifying numbers (paypal, adsense etc) is also a good idea.

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