Blog (resources) are in Demand

19 Jan
2007

I had thought that the blog train was starting to slow. The money-men were (are) starting to get in, and (thankfully) the importance of pageviews is waning while the importance of revenue is on the up.

Or so I thought.

Recently we began some house cleaning of Bloggy Network. We have built up a collection of some nice blog resources and it was time to let go. The best one of the bunch was Blog Catalog. A common sight alongside the menu bar of many blogs, it has over 1 million backlinks (as reported by Yahoo). Yet even with all those backlinks, its revenue was still meager – roughly $1700 a month.

So after some discussions between Jacob and I, we set a BIN of $40,000. At almost 24 months revenue, it sounded like a good deal for us. So Jacob went out and posted it on SitePoint. We were going to see how it went, and then start contacting private buyers to get somewhere near the BIN price.

The site sold in under 24 hours.

Within the first five hours we had two offers of ‘if you lower BIN to $30k I will buy it immediately.’ Within 12 hours of the BIN reached, Jacob told me that seven other people had contacted him if the deal fell through, and two even offered us more to break the deal (some people have no ethics).

Our other two sites also flew away. The first one was Eatonweb, which hit the BIN in roughly 72 hours. The sale price was 100x revenue. Eatonweb was the first blog directory, so we were a bit sad to see it go.

The other one was 2RSS. This one went BIN in roughly 3 hours, also at 100x monthly revenue.

So what happened? A few things to learn:

  1. Blogs are as hot as ever. The speed at which the BINs were reached speak volumes for that. Incidentally the person who lamented not getting BlogCatalog also lamented not getting BlogRankings when it was for sale.
  2. People can see quality. BlogCatalog was a top-notch quality site, and Eatonweb and 2RSS were two well established sites that need a bit of an overhaul. There is a lot of junk, and when you post something of high quality, it will get snapped up. I’ve sold about half a dozen sites, and all of them went for minimum 20 months revenue.
  3. Set your BIN high! I do want to say that we have no regrets about the amount we did raise. But going back to my previous point – quality commands a premium. A good solid premium. When will the next PR7 blog directory with 1 million backlinks come again?
  4. No place for emotions if you want to succeed. I sort of wanted to keep Eatonweb (after all, it was the first blog directory), but it simply didn’t make sense. When other people’s livelyhood depends on your decisions, getting emotional is not good.

This was a good move for us. Blog Flux is our main focus anyway, and it made sense to give these three sites new owners to take them to new levels.

[UPDATE: Doh! I keep clicking on 'Save' instead of 'Publish' in WP. Well - it is live now]

16 Responses to Blog (resources) are in Demand

Avatar

Lessons from Selling Websites

January 21st, 2007 at 5:34 am

[...] Ahmed has posted some reflections on the recent sale of three blogging related sites (Blog Catalog (sold for $40k), EatonWeb (sold for 10k) and 2RSS (sold for $7k) which all sold for between 24 and 100 times monthly revenues. [...]

Avatar

Marketing enRedado » Blog Archive » ¿Cuánto vale un Blog?

January 21st, 2007 at 7:43 am

[...] Blog (resources) are in Demand. [...]

Avatar

Vern

January 21st, 2007 at 8:48 am

Wow, that is encouraging news… Back in 2003 I sold a couple e-commerce sites and was happy to get $17,000 for them. I had worked on them for a few months, and just wasn’t into it anymore. Now I’m working on blogs and it’s quite a bit harder work to produce things daily. But, I also have in mind that down the road they’d fetch something when being sold. Any body else have any success stories about blogs selling? I’m just starting so it will be a long time for mine, but just curious…

Avatar

Ahmed

January 21st, 2007 at 11:28 am

I do want to take on moment to note that BlogCatalog was one of the *top* directories (likely #2 if considered by traffic). Eatonweb was the first directory (and thus the most ‘aged’ of them all). 2RSS was the #1 RSS directory.

These were all premium (in their category) sites. The #1 site always commands a higher price than the rest (with all things considered equal). Just look at Weblogs Inc :)

Avatar

Top lists (can someone do something new & stop imitating me) - Tech Soapbox

January 21st, 2007 at 12:55 pm

[...] The product, Blog Top Sites, has been a runaway success. Game Sites 200 was tough because we weren’t the first. For blogs, we were. And after Darren Rowse added us to his sidebar, it just took off. According to Technorati, we have over 10,500 links. Just counting our four most popular categories (Entertainment, Personal, Technology, and Politics) gives us over 800,000 backlinks. Combining the links for all the categories should easily yield over 2,000,000 backlinks. Compare that with 1,000,000 for Blog Catalog and (almost) 1,000,000 for Blog Flux Directory puts Blog Top Sites in rare company. [...]

Avatar

Adnan

January 21st, 2007 at 2:13 pm

Hi Ahmed and salaams.
Im Adnan from Blogtrepreneur.com – I came to your site from Problogger.
Just wanted to say congrats on your site sale – wow that really is a lot.

Lately I’ve been pondering about whether to sell my blog, but how can I value it if its around 6 months old? Do I check backlinks, current earnings? If you could gimme an email if you could estimate (and if you’ve got an ounce of spare time), it would be much appreciated.

Thanks mate,
Adnan

Avatar

Ravi

January 21st, 2007 at 3:42 pm

these sites are blog directories, which have really no tie to the owner. i.e. their value isnt born from the specific writing/editorial style of a founder/key-writer. curious if anyone else has experience selling a blog that has more of an identity with the seller.

Avatar

Ahmed

January 21st, 2007 at 4:52 pm

Ravi got it there – blogs are a vested commitment between the readers and the writer. Any time we (BloggyNetwork) have bought a blog, it is only *if* the existing reader stays on. At least, that is how we do it now :)

As for value – you have to state anything that is a pluspoint. From listings in dmoz to listings in wikipedia to yahoo to backlinks to Alexa – mention anything and everything that shows the *value* of your blog/site/whatever.

Avatar

Duncan

January 21st, 2007 at 4:59 pm

Congrats, but also wanted to disagree somewhat, sure, blogs are “in” at the moment, but this isn’t an explanation for the sale: I’ve been following these sorts of sales on Sitepoint in particular for a couple of years now and I don’t believe the “blog” factor was the main cause of interest here, an interest that saw multiples that wouldn’t stick on other sites (indeed, you’d be flamed for them). First and foremost people bought the quality: Eatonweb was a 10 year old domain, there’s a lot of trust rank built up in that site, and the other two were well matured as well. Others would have seen further opportunities in the sites, great PR and trust again to leverage in further advertising or cross promotion of the buyers sites (leverage is hard to put a price on, but it’s a factor). But having said all of that, I don’t want to take away from a great sale…congrats. The BIN issue is an interesting one, I don’t agree with the advice, sometimes a too high BIN scares people off, the actual issue here is valuing high value sites such as the ones you’ve just sold…I can tell you now for small sites if I see stupid BIN’s I don’t bid :-)

Avatar

Ahmed

January 21st, 2007 at 5:19 pm

I do think because it was blogs it got a bit of an ‘extra’ premium. Everything else I agree (eg one site I sold – http://www.sitepoint.com/marketplace/auction/699 – 35 month revenue).

I agree 100% that premium sites (eg trusted sites) do command their own ‘premium’ I just think that blogs are still a hot commodity and thus command an even higher price.

Avatar

שיווק ויראלי באינטרנט « ארכיון » העסק הבא שלי- בלוגים

January 22nd, 2007 at 4:16 am

[...] קראתי פה על אתרים שמייצרים ×›- 1000-1700 דולר לחודש הכנסות מפרסומות וכו’, אשר נמכרו בסכומים של 30,000-50,000 דולר ויותר! לאתרים המדוברים לא ×”×™×” הרבה יותר גולשים מבלוגים מצליחם בארה’’ב והם עשו את ההכנסות שלהם מגוגל, רשתות פרסום שונות, תוכניות שותפים ועוד. [...]

Avatar

  Blog (resources) are in Demand by Blogging Pro

January 22nd, 2007 at 4:05 pm

[...] Ahmed, a close friend and a fellow Bloggy Network staff member has posted on TechSoapBox about how hot blog related resources seem to be currently. This isn’t very surprising to me because of the insane growth of the blogosphere and reports on how advertising continues to grow online. What does surprise me are some of his figures. [...]

Avatar

Moses Francis

January 22nd, 2007 at 5:19 pm

dang..that’s cool, i shall hold on to my ‘blog’ domain name than

hehee

Avatar

Tony

February 16th, 2007 at 12:01 am

I purchased BlogCatalog from Jacob and am grateful for the opportunity to acquire a **top** blog directory. There seems to be a bull market in smaller/top notch websites. Almost any good site that goes on sale gets bought quickly. What bricks and mortar business will return 50% of the purchase price within a year. This is with very little work. Within 2 weeks BlogCatalog is already a more valuable resource. Nothing against Jacob as the guy is amazingly impressive. We have added a ranking algo that I hope is showing the better blogs at the top. Im new to the blogosphere and open to any ideas and suggestions.

Avatar

Selling Blogs: Thick skin is a requirement - Tech Soapbox

February 21st, 2007 at 12:06 pm

[...] We’ve been involved with selling blog resources (but never blogs) and also been involved in acquiring blogs ourselves. And while Jacob does all the heavylifting in finding great bloggers and so forth, there is one condition I have always placed on any purchase involving a blog: If the blogger does not come with it, we don’t want it [...]

Avatar

» (Más) Ventas millonarias de blogs - Canguro Rico

April 8th, 2007 at 4:13 pm

[...] Vía problogger de nuevo, me entero de las increibles cosas que pasan en Estados Unidos. Parece ser que Ahmed, uno de los socios de la red de blogs BloggyNetwork, ha conseguido vender 3 de sus sitios relacionados con blogs por entre 24 y 100 veces lo que gana al mes con ellos. En su blog relata con más detalle como fueron estas transacciones. [...]

top