How Much is My Blog Worth?




How Much is Your Blog Worth?
Here are three key metrics that help website buyers determine the value of a blog.

The value a blogger may put on their site is not necessarily the same value a buyer will put on the site. As bloggers, we tend to believe we have a more valuable asset than what we really do, only because of the amount of time we’ve spent building the blog.

That isn’t to say that blogs can’t be worth a lot of money. They can actually be worth tens of thousands or even millions of dollars to the right buyer. However, the TIME you put in to building the blog is not the key metric a buyer is going to base the valuation on. Instead, there are several other key metrics they focus on. Here are three of the most important.

Blog Authority
First is the authority of the blog. The authority of a blog is made up of several other smaller metrics which can include the number of social followers, the page rank of the site, the domain authority, the number of back links to the site and how many keywords the site ranks for organically.

An analogy of blog authority is to look at it as you would in finding a specialty doctor. Perhaps you need a special surgery, so you start asking around for a recommendation. When you ask your friends for a good doctor, you’ll get a lot of recommendations and suggestions. The more people recommend one particular doctor, the more authority you place on that doctor. Then when you see more information about the doctor online, while doing searches, you place an even higher authority on them.

Blogs are the same in creating that authority. The more people talk about your blog and recommend it, the higher the authority in your niche. The higher the authority, the more valuable it becomes.

Blog Traffic
The second key metric to look at when valuing a site is the traffic the site is receiving. If you have a great blog with a lot of quality content, but no traffic, it’s not going to be worth much. On the other hand, if the content of the site is high quality and you have a “good amount” of traffic, your site can be worth a lot of money.

So what is a “good amount” of traffic? That depends on your niche and the value of each visitor. Buyers will place a value on traffic to a website based on the geographic data, demographics and the cost per click value of keywords driving traffic. Any way they can quantify the traffic they will. They will place a true value on what that traffic is worth to determine a proper valuation for your blog.

Blog Revenue
The third key metric is your current revenue. Although this isn’t as big of a concern for some buyers as it is for others, it does provide an insight on who your readers are and their engagement on your site. Getting a lot of traffic to a site is good, but if the visitors don’t do anything once they’re on the site, it doesn’t turn the traffic into revenue.

As part of the current revenue metric, buyers will want to see statistics such as bounce rate, number of pages per visit and time on site. These figures will provide details for them on how to monetize the traffic even better than what you may be doing currently.

Start tracking your blogs authority, traffic and revenue in this way and you’ll start to get a better handle on what your site may be worth to a potential buyer.

davidg
About the author:
David Gass is a business coach and online consultant who lives in the Boise, ID area. David is a serial entrepreneur who has started businesses with $200 and grew to multi-millions with successful exits. His companies have been listed on the Inc. 5000 list of fastest growing companies in the United States three years in a row and he has received several awards for his entrepreneurial efforts and commitment to giving back to his community.
My website is at: http://www.DavidGass.com


  

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