Determine the Value of Your Mom Blog - dummies

Determine the Value of Your Mom Blog

By Wendy Piersall, Heather B. Armstrong

Determining the value of your mom blog can be a very subjective number, especially when you can consider all of the factors. The accepted standard you can use to determine a baseline value to work with is as follows:

  1. Total the monthly revenue of your blog from ongoing advertising revenue, affiliate revenue, and ongoing product or service sales (such as membership fees, classified ad listings, downloadable purchases, and so on).

    • You can only count revenue that can be earned by anyone. Any consulting fees, personal sponsorships, or opportunities you received because of your blog are not likely going to transfer over with a new owner.

    • For example, $500 advertiser revenue + $250 AdSense revenue + $250 in product download sales = $1,000 per month.

    • If your revenue has steadily grown over time, use an average amount from the last three months.

    • If your income fluctuates or is seasonal, you’ll have to determine your annual income instead of your monthly income.

  2. Multiply the monthly income by 24 to determine two years’ revenue.

    • For example, $1,000 per month x 24 = $24,000.

    • Two years’ revenue is a commonly accepted starting point to determine the estimated earnings a buyer can expect after they take over your site, so this calculation assumes it will take them two years for them to break even.

    • Of course, a new owner can be expected to work on growing that revenue, so they may break even sooner.

For small sites that change hands between individuals, two years may be too long a time to use in this calculation. In that case, you may only get 12–18 months’ worth of income. When the economy is great and you have multiple parties interested in buying your blog, you may get three or four years’ worth of income.

And again, this is a starting point. If you have a mailing list with 100,000 subscribers, have a sophisticated application up and running, or you’ve lucked into a highly coveted domain name, you have a lot more negotiating room beyond just your blog’s monthly income.