I’ve talked about one of our strengths being our diversity – so why sell the blogs?
Quite a few reasons:
Blog Flux. It “holy shit this could be huge” excites me. 95,000 [approved] blogs. Alexa in the top 5k. Over 145,000 registered users. Yahoo says 4.4+ million backlinks, Google [sitemaps] says 4.8+ million backlinks. Blog Top Sites has tracked over 1.25 billion pageviews – in under a year!
This site oozes potential. It has traffic. It has a base. It makes money. What it doesn’t have is a coherent plan to take it to the next level (10+ million backlinks, 500k+ registered users, sub-1000 Alexa). Part of the problem has been time. Our biggest blogs (being the biggest) required considerable effort and time on our end to maintain. Selling them frees us from that. At the same time, the sale provided us with …
Liquidity. Cash is the life blood of any business. We are self-funded. Yes Enthropia Inc itself is strongly in the black. Yes we have money that could continue to fund Bloggy Network’s growth. But I already helped fund the creation of BN. Two years in, it’s time for the company to start standing on its own. There is a reason it is its own LLC and not a subsidiary of Enthropia Inc. So the sale provides us with a good liquidity boost as we re-focus on Blog Flux.
Resources. Related to liquidity – Gawker and Weblogs Inc got in early, so they got all the press. Since then there have been only two blog networks really worth noting – b5 Media, and Splashpress (who bought the blogs). b5 is VC funded, and Splashpress has its own pool of money. Competing versus that is hard. You have to be realistic. We have our strengths – our fantastic web design department and Blog Flux. Few others can claim such a combo (I can’t think of a single site that competes directly with Blog Flux). So we put our full effort into our unique offerings. Best bang for the buck.
Personnel. No doubt about it, the people you have determine how well you do. We had a project recently fall into our lap that was just too good to pass on (it is related to local – and no detail is public yet). So one of our programmers is moving to that. Another blogger (who was the primary writer on b Feed Me, Celebrific, and Filmsy) was promoted. Michael (who wrote primarily on Apple Gazette and Forever Geek was promoted to run our city-blog network: is My Home. And since his passion was Apple, Forever Geek was the odd man out. And they wanted David [to deal with the technical issues - their weak point]. A good fit for David too – he was close to their Performancing team, and the blog he ran was Blogging Pro. All this movement created a huge headache for us – finding good capable bloggers. The simple solution was to move on.
It’s a win-win for both. Splashpress gets some high quality blogs with real loyal followings. We get to stay small and focus on what we think will yield the biggest bang for the buck.