P. T. Barnum was right
I was reading a Souls Road post and decided to explore an attempt at blog valuation.
My blog is worth $23,710.68.
How much is your blog worth?
The calculation is based upon this:
AOL bought Weblogs inc., the two year old weblog network founded by Jason Calacanis and Brian Alvey, for a number that is rumored to be anywhere between $25 million and $40 million. In this process, Time Warner may be providing some ideas as to the valuation of blogs by traditional media....
Many in the blogosphere say that traffic is not a good measure of what blogs are but that conversation, as represented by links and indexes like Technorati, represent a more accurate view of the value of a blog....
In acquiring Weblogs Inc., AOL has now provided us with some numbers traditional media are willing to pay for a blog. Looking at the numbers above, one can try to guess at the value of a link from an external site. a single link on the weblogsinc network represents 0.002258559942180087 percent of the overall network.
At the different rumored price points from AOL, it looks as follows [for 1 link]:...
$25 million value $564.64
30 million value $677.57
40 million value $903.42
I don't know if those values are based on any real rationale but it's nice to dream up the value of one's blog based on this.
Should we now assume that traditional media companies are willing to pay between $500 and $1000 per site that links into a blog?
Not quite. The incremental value is in the size of the network and the underlying tools. Jason and Brian have been working on developing a blog authoring technology, called BlogSmith, that sits at the core of their network and one has to believe that AOL saw some value in the software too. However, one can easily say that blog valuations are going to be easier to make after this deal since it provides the first yardstick in that space.
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