HOW TO CALCULATE A BLOG’S VALUE
There’s no one way to do this. But there is a simple way to do this. Just look at profit, assets, and premium.
Annual Profit = $65,000
Assets (design, technology, subscribers) – This is subjective. Everyone will value these differently. It really boils down to what a buyer is willing to pay. For this example, let’s value assets at $10,000.
Premium – Content and traffic makes a blog worth a premium. Many blogs are bought and sold based solely on monthly visitors and traffic. For this example, let’s set the premium value at $15,000.
The equation is:
PROFIT $65,000 + ASSETS $10,000 + PREMIUM $15,000 = BID $90,000
After you have a ballpark figure as to what the blog is worth, you can now figure out your first offer. NEVER make a high offer at first. Nd don’t pay more than what it’s worth. Unless you know “for sure” that you can boost annual profits.
Stay tuned. More to come.
Questions or comments? Let’s talk about it. Like iron sharpens iron, so one person does another.