If you ask most people why they blog, they'll probably tell you it's
the ability to write/rant about topics of interest, engage with other
people or simply indulge themselves in a vanity project. But in the
wake of AOL's $25 million purchase of Weblogs.com,
it turns out a lot of people are in to blogging for the money if the
chatter about valuation is any indication. The culprit is Tristan Louis,
who cleverly examined Weblogs' blogs and came up with a valuation based
on the number of links (using Technorati as the tool). He figured each
link into a blog is worth $564.54. This means my blog
is worth about $146,000, even though it generates a minimal amount of
advertising. Mind you, I've done a terrible job trying to get
advertising because it's not why I write this blog - although a few
bucks to pay the mortgage is nothing to dismiss. It's fascinating how
the slightest sniff of money causes the true capitalists to come out of
the woodwork. That said, there are blogs worth something so don't be
surprised if there are more deals done by companies like AOL looking
for traffic. Om Malik's Gigaom.com,
for example, probably receives huge amounts of traffic and it's worth
about $1.1 million using Louis' formula. Do you think Om would sell if
he was approached? As much as Om loves his forum, I think anything is
probably for sale at the right price. My biggest concern about the
fallout of the AOL-Weblogs deal is that people who blog will be
corrupted by the money. (sounds rather naive, doesn't it?) Rather than
blogging because they love it, they will do it, in part, for the pot of
gold at the end of the rainbow. I guess this is an inevitable part of
the market's evolution given that many blogging tools have
already been financed and snapped up. But it doesn't mean you have to
like it.
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Comments
Re: What's a Blog Worth?
by
Tyler
on Mon 10 Oct 2005 12:17 PM EDT | Profile | Permanent Link
Hey Mark, how much traffic are you tracking these days -- I guess measured by distinct hosts?
Re: What's a Blog Worth?
by
Toby Ward
on Mon 10 Oct 2005 01:21 PM EDT | Profile | Permanent Link
Why sell out when you can do all this work for free? Hehe. It's all about advertising. Actually, I was a little surprised Weblogs sold for that cheap given all the hype about behavioral ad and RSS targetting. What was it that Blue Mountain Arts sold for? About a half a billion dollars?
Re: Re: What's a Blog Worth?
by
Mark Evans
on Mon 10 Oct 2005 06:00 PM EDT | Profile | Permanent Link
i think a lot of bloggers are getting dreamy visions of blue mountain in their eyes. i have little insight into whether AOL under or over paid for weblogs but i suspect they've set the benchmark.
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