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How to Determine the Value of Your Blog

 

I have a previous post on how much does your site worth, and the result is, to me, simply for fun. It is because the system does not take all the things into the account and does not give an appropriate weighting to different factors. As a result of that, the system gets the inaccurate result. Anyway, it is always good to use human's mind to determine the value instead. When determining the value, what are the most important factors to consider? Below are some of my suggestions that one can use when he or she is trying to sell his or her blog:

- Earnings
Perhaps, it is the most appropriate and important factor, and characteristic to sell to your customer. To do this your blog will of course need to be earning something to start with. Again there are different opinions around the web as to how to use current earnings to assess a blog's value. Some say you should expect 6 - 8 months earnings as a price (i.e. a blog with a daily income of $100 would sell for between $18,000 and $25,000), while others calculate a site’s value as being 2 years of current earnings (i.e. a blog earning $100 per day would be worth $73,000). Again this doesn't really help much as there is such a huge difference between these methods of assessing value.

- Domain Age
An older blog should have a bigger reader base, and hence receive more constant targeted traffic. This is particularly useful when using your blog for affiliate marketing to earn.



- Domain Name Value
It is pretty straightforward. If the domain name of the blog is easy to remember and consists of meaningful words, you can definitely ask for a higher bid. For example, one of my sites is called "Earn Secrets", and should have higher value than the blog with the name "Adsense Hut", while neglecting other factors. If you've got yourself a highly sought after domain name you might be able to sell that alone - the buyer could scrap your site and build their own. In a sense this is like selling your home that is falling down knowing that the buyer will knock it down and build something else - they're paying for the land. Domain name value can range incredibly - loans.com apparently sold for $3,000,000 for example.

- Traffic
Most of us don't have a domain of that high a value - but that doesn't mean our blog is worthless. Traffic levels are obviously another method of determining the value of a site. Highly trafficked blogs obviously have a higher potential for earning than those with no readership. However determining the value of traffic is the tricky part. I've seen people value traffic at anything from $3 to $10 per hit per day. By this equation a blog with 1000 impressions per day would sell for anything between $3,000 to $10,000. The downfall of this approach is obviously that some traffic is more valuable than others. A blog that is personal in nature for instance might have 1000 daily impressions but they are harder to convert to income than a blog with 1000 impressions that writes on the topic of plasma screen TVs.

- Number of Back links
Another easy to know factor that does not require me to explain too much. You can easily check the number of backlinks using some scripts like SEOquake. I will introduce SEOquake to you in the near future.



5 Comments

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Blink says...
Hi there... i was really amused with the result of my blog...it's around $37K...I'm only blogging for around 1 1/2 months...Many thanks to the calculation..Best regards...

my site: htt://www.philippinenursing.blogspot.com

25th August 2007 8:59pm
Adsense Hut says...
Hi blink,

Thanks for your comment! I am glad that you like this tool and my post too!

13th September 2007 3:27pm
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Eric Monse says...
Yeah, fun, that's about the long and short of it.
18th October 2007 12:31am
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Jeannet Snow says...
hey found ur blogs very useful. i was lucky to be hear. thanks.

http://thecelebrityblogs.blogspot.com

10th December 2007 7:35pm
Adsense Hut says...
Hi Jeannet,

Thanks for your comment, and you get a hot profile pic, buddy!

13th February 2008 9:52am
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