How does one value a weblog?
One method, conceived mostly in jest, used the acquistion price of Weblogs, Inc. along with some Technorati links to develop their own valuation scheme. I, of course, like this valuation scheme because it values The Blog Herald at nearly $900,000. I can assure you that this is far more than we paid for it back in February.
Over at Bloggasm, Simon has developed a new valuation system that’s somewhat more refined than these simple ones:
Because of this, I set out to statistically find a formula for predicting a blog’€™s worth, so somebody that is thinking about buying a blog can use it to estimate how much money he or she should spend buying out the blog. Please note that this only predicts the worth of the blog itself, not the blogger as well if you’€™re planning on bringing him/her on board.
His system values The Blog Herald at around $55,000, which is alot closer to what we paid than the nearly $900,000 using the method above.
This is a good step forward, I believe, but it’s still somewhat off the mark.
In the end, I still believe that some of the old ways of valuing a business still apply in this odd online world that we live in. A multiple of monthly income somewhere between six and eighteen months still make sense to me.
Maybe I’m old school…
Darren has more…
