AOL-Weblogs Inc. Deal – Benchmark for Future Blog Valuation
Weblogs Inc was established by Jason Calacanis and Brian Alvey in 2003. It is a network of blogs which includes under its wings successful blogs such as Engadget and Autoblog. Jason Calacanis pointed out that Weblogs Inc. earns in excess of $1 million yearly in Google Adsense revenues alone.
AOL purchased Weblogs Inc. for a confidential sum assessed at somewhere between $25 - $40 million.
Tristan Louis itemized the publicly available data (list of blogs indexed) at Weblogs Inc. network including the number of inbound links (Technorati blog numbers) per blog divided by the purchase price to determine the value of an inbound link to a blog. At the rumored price of $25 million, the estimated value is $ 564 per link. At $30 million, it is $677.57 per link and $903.42 at an acquisition price of $40 million.
Applying Tristan Louis's Weblogs Inc, sale, Dave Winer has also sold http://Weblogs.com to Verisign for a rumored price of around $2 million.
Some bloggers value traffic anywhere from $3 to $10 per hit a day. From this data, a blog with 2000 unique visitors (page views) would be worth between $6000 to $20,000.
Some bloggers opine you should expect six to eight months earnings as your blog value. A blog with a daily income of $150 would be worth between $27,000 - $36,000. Still, others determine a blog's value as being two years of current earnings. A blog earning $150 a day would be worth $108,000.
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