Cashing Out and Selling Your Blog

Over at the Performancing blog, there is a post offering 3 blogs for sale… and the lister obviously arrived at his “valuation” of the three blogs by using this tool: How Much Is My Blog Worth. No bids and the only comment is a recommendation on how to get SOME buyer interest in the blog.

Meanwhile, Small Potato is offering his blog WPDesigner.com for sale on the same site. WPDesigner.com not only has a high PR (7), it also has a membership site as well. According to the tool above, the value of Tung Do’s site is 762,693.54.

He also reports the following “stats” for his blog:

• 2900 RSS subscribers (best month yet)
• Over 400 paying themes club members
• Over 1300 club members overall
• PR7 front page with multiple PR6 sub-pages
• #1 on WpThemesGallery’s Top 40 WordPress Blogs
• #1 on Google for “wordpress theme tutorial”
• #3 on Technorati
• 2 of Wpdesigner.com’s free themes are being used on WordPress.com, which is a community of hundreds of thousands of bloggers.

The current bid for his blog… comes in at less than 10% of the fantasy figure at $65,000.

The truth of the matter is, there are several ways to value a blog. The first is Monthly Income X 12 = Sales Price. The second is to try to use the first figure but then try to assign a “blue sky” value to the audience the blog has built.

However, Business Review Online has come up with a formula to determine your blog’s value:

BVIa =

adh (aay/1,000)
—————
abt x ehw

If you look at the equation, you’ll see that you need to know how many hits the blog gets per day (average daily hits or adh); and the average advertising yield for web adverts alongside the blog (aay). To work out the cost of the blog you need abt, which is the average number of hours spent per day blogging, and ehw, which is the employee hourly wage of the blogger.

NICE!!!

Unfortunately, Sam the gentleman who is trying to sell his long neglected blogs for $2700 is probably going to be disappointed. Trying to sell a neglected blog is like trying to sell a condemned house… in order to get any money out of it, you’re going to have to invest a lot of time and effort into bringing the house or blog “back up to code”. However, unlike a real estate investor, anyone interested in Sam’s 3 blogs just needs to wait until Sam misses his domain renewal and then snap up those domain names and launch a new blog there.

On the other hand, the years of work Small Potato has invested in his blog has resulted in many bidders on his blog.

In the end… your blog is worth what people will pay for it… and in the case of a neglected site… you may need to actually PAY someone to take it off your hands!