Do you own your own blog, or maybe you’re considering buying one? Are you curious how much it’s worth? I know I’m always curious about my blog worth, but there are so many factors, and so many websites that give different answers, how can I really know?
Estimates of My Blog’s Worth
A couple of months ago, my site was earning an average of $1,500 a month or so and I was just curious how much it would be worth if I put it up for sale (don’t worry, I never planned on selling this site….unless it was worth a millions bucks or something…). Could I sell it for $5,000? $10,000? Maybe even $20,000? I honestly had no idea, so I took my question to Google.
Sites That Calculate Your Site’s Value
It turns out that there’s quite a few sites that try to estimate a blog’s value. Most of them just ask for your URL, and they spit out the value of your blog! Sounds simple…. until you visit more than one estimator. Take a look at the different estimates I got for my site.
Website Worth – estimates that my site is worth $16,796
URL Appraisal – estimates that my site is worth $1,746.37
Site Worth Checker – estimates that my site is worth $27,806
That is quite the range of estimates!! I only checked three sites and I already have a $26,000 difference! So, obviously, these websites aren’t very accurate when it comes to checking the value of your blog.
A Typical Rule of Thumb
As a general rule, I’ve also heard that your website’s worth is anywhere from 6 months to 12 months profit. This could turn into a pretty big span as well, but it’s a little more consistent than the website estimates that we just explored.
If I were to use this method, my site would be worth somewhere in between $9,000 and $18,000.
Rather than continuously checking my blog’s worth on other websites with a 1,000% variance in estimates, I’ve decided to calculate my blog’s worth through a method of my own. Answer the following questions below to find your blog is worth to you.
1) How long do you plan to keep your blog up and running (choose between 1 and 5 years)?
2) What is you blog’s average income from the past 6 months (this should be a monthly average)?
3) How much do you expect your blog to grow (in visitor numbers) while you own the blog?
I plan to keep this site going for the next 5 years, my average income per month is about $1,500, and I expect my site to grow by 15%. With these responses, we now have all the information we need to estimate our blog’s value.
12*(monthly income)*(years)*(1+(growth percent)) = My Blog’s Value
Using the above equation, let’s figure out what my blog is worth to me over the next 5 years:
12*(1500)*(5)*(1+.15) = $103,500
That might look like a pretty huge number, but that’s exactly the amount of money that I’ll earn with my blog over the next 5 years, so why in the world would I sell it for $10,000?? It just doesn’t make sense.
At this current moment, my blog is quite valuable to me – I probably wouldn’t let anyone have it for anything less than $100,000, but that’s only because I plan to keep writing and building it beyond its current state. I’d be pretty crazy to sell it.
What if the circumstances changed? What if I suddenly became an investment advisor and it was against company policy to have a financial blog? They gave me 6 months to sell it, or they would force me to shut it down.
Suddenly, my equation has changed entirely:
12*(1500)*(0.5)*(1+0.00) = $9,000
Now, if I were offered $10,000 for my site, I would jump all over it!
Don’t Let The Buyer Tell You How Much Your Site Is Worth
Hopefully, you are starting to understand my point. Don’t get so caught up in how much your site is worth, but rather, make sure you know how much your site could earn you in the next few years. If you actually calculate your potential earnings and they far-exceed the current offers, there will be no question that you should turn them down flat.
If however, your site is beginning to drag you down and you can’t keep up with the posting schedule, then it will be time to entertain those offers. I’d say make sure that you get at least 8 months of historical earnings.
Have you ever thought about selling your site? Are you thinking differently about it now? What is your site worth to you?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.