Splashpress Media

Splashpress Media’s Worth? A $1,000 cash prize!!

Posted on Nov 6, 2007

Personally, I’m a fan of Loren Feldman at 1938 Media. I like the way he gets things across in a no bs style and he never fails to make me laugh, even if he probably doesn’t mean to. Just like my step-father from Vegas who always tells me “you’re pissin’ up a rope, my boy” there is an Americanism that just appeals to my rather stiff, formal English sense of humour.

Anyway, the point he raises in this video is crucial to all of us who work in the blogging industry and it gave me an idea….one that I know we will be well and truly trashed for. So be it.

Splashpress Media has gone around buying up a lot of blog-related sites on the internet over the last year- to the degree that some have called us Splash Cash. In some instances, maybe we overpaid, in others maybe we got a bargain. Who knows…?

Certainly, prices seem to have gone up over the last year. Compare when we bought JOAB at its height from David Krug for $2k, to a blog like Blogging Fingers which sells within hours at Sitepoint for its BIN of $6k. Or One Man’s Goal- just a 5 month old blog being offered $8.5k yesterday. These are all minor deals, of course, and not any reflection on a Facebook bubble. But still…it’s the many parts that make the whole.

So here’s the deal. We’ll give $1,000 cash to the best “worth evaluation” of Splashpress Media‘s network via a comment in reply to this post, a post on your own blog with a pingback or a private email via our contact form.

We already know its value to us….!

To explain a bit further- what we are looking for is the best “model” for “worth evaluation”, not the $$ figure itself, i.e: it really doesn’t matter whether you think we are “worth” a million bucks or zero, it is how you got to the numeric figure that matters. And to make it harder, we’re not going to provide any stats whatsoever or any revenue figures. You’ll just need to guess at the reality or the potential- up to you.

One point we would like to make is that, like many others, we were penalized hard in the recent PR update. Many of our sites lost 3 points. This may downgrade the “worth” of those sites, or not- but it also may lower our income, as we take steps to get our PR back by being good little boys and discarding paid text links. So bear this in mind, e.g: Performancing from PR7 to PR4, Wisdump from PR6 to PR3, Blog Herald from PR6 to PR4 and so on….all may be “worth” less, or may rebound in PR and have less income.

Another small tip. How much “lateral worth” does one get in terms of leveraging one’s own products? e.g: how many licenses of Blog Hoster do we sell by pushing the brand within our own network?

You should base your “worth evaluation” only on the properties as shown in the network section of this site.

Who will be the judge? We have decided the best person for the job is the “blog seller” or “site flipper” himself, Mr David Krug. There is nobody in the business who knows better “what you can get”. And how you get to such a figure, based on all the facets and angles involved.

We’ll entertain entries until the end of this week- Sunday, Nov. 11th, midday EST.

On Monday, Nov. 12th, we’ll publish the winning entry and Paypal that person the $1k. No SPM employees allowed to enter!

As a footnote, just in case there is any speculative mischief, this is an intellectual experiment. We are NOT looking to sell our network (or any of our online properties) for a very, very long time.



14 Responses

  1. Evaluate Splashpress Media’s Worth and Win $1,000 : The Blog Herald

    06|Nov|2007

    […] to a business, and we would like to know your thoughts about how much you think we are worth. For the best “worth evaluation” we will give a prize of US$ 1,000. So here’s the deal. We’ll give $1,000 cash to the best “worth evaluation” of Splashpress […]

  2. How much is Splashpress Media worth? | 901am

    06|Nov|2007

    […] But how much is it really worth? If you are asked to put a value on the company, how much do you think is it really worth? Why not try presenting your best “model for worth evaluation” for Splashpress Media. In return, they are willing to give the best model $1,000. This post can explain it better. […]

  3. Devlounge | The Worth and Value of a Blog

    06|Nov|2007

    […] maybe you can? I’d like to plug a $1,000 contest here, hosted by the new Devlounge owners, Splashpress Media, as a response to a video post on blog/site […]

  4. Vishal

    06|Nov|2007

    absolutely do NOT agree with your comments on Facebook worth and value. i’m pretty surprised that a top blogger such as yourself is a bit confused and not aware of both value and worth of facebook. i dont care if this is a bubble or not…. and when it will burst… but you’re pretty off on the facebook note. heck the PC assets they have have some value. so its not zero. i dont think you’ve been using facebook much at all… have you? anyway, i’m zligging your article to see what the community thinks of it. you may want to drop by and see… http://www.zligg.com/out/Splashpress_Mediarsquos_Worth_A_1000_cash_prize

  5. Quick Online Tips

    06|Nov|2007

    Guess Splashpress Media Network Worth to Win $1000…

    Splashpress Media has been in the buzz lately due to their aggressive buying out of top blogs. The widespread Google Pagerank downgrades have changed the way blogs are valued. Splashpress Media is offering $1000 cash to soemone who can provide the best…

  6. Rob

    06|Nov|2007

    A formal analysis of blogs from sitepoint and digitalpoint show that they usually sell at 11.56 times monthly cash flow. That’s low compared to other industries, but it reflects the perceived riskiness of a blog. By acquiring an entire network, the perceived risk should decline which would increase the premium. I would assume that a financial acquirer would pay about 15x-20x monthly cash flow, and a strategic acquirer would probably pay 24-28x monthly cash flow. I’ll guess your average site does around 2K a month net, and that you would most likely be acquired strategically. You have 54 sites so multiply that by 26 (halfway between 24 and 28) and 2K and you get $2.8 million. That’s what I think you could get if you wanted to sell, and held out for a good price.

  7. Evaluate Splashpress Media’s Worth and Win ,000 | Blogger Trail

    07|Nov|2007

    […] to a business, and we would same to undergo your thoughts most how such you conceive we are worth. For the prizewinning “worth evaluation” we module wage a accolade of US$ 1,000. So here’s the deal. We’ll wage $1,000 change to the prizewinning “worth evaluation” of […]

  8. AJ

    07|Nov|2007

    I think that the true value of SPM and all it’s properties is really immeasurable. To try to put a dollar amount on a network containing such a wide variety of sites falling under many categories is almost impossible. Each and every site has its own collection of faithful readers who turn to these sites owned by SPM day in and day out. They obviously place an extreme high value on these sites because they are so greatly valuable to them. The content SPM outputs and the quality of it allows each site to have an incredible amount of worth, both literally and figuratively, in the minds of the owners and the readers.

  9. Jon

    09|Nov|2007

    Wow.. ok but that’s difficult. I suppose a formal analysis is very hard without any data, so that method isnt going to work. But you guys sell all sorts of stuff, the blog products prices range from a few dozen dollars all the way up to a few hundred. But then we have to consider the worth of the membership of some of those sites- performancing metrics must have tens of thousands?

    From my personal experience I know that just one successful blog can rake the money in. So with all the interlinking going on and the cross promoting of a certain relevant product on another network site (or multiple sites) the potential worth is probably huge. Ive seen some purchases have been multiples tens of thousands upwards, so in order to justify that kind of cash purchase splashpress must have had pretty strong confidence in the returns. Especially to do it more than once (buy more than one product). Definitely tricky to calculate a possible figure. However I am going to run with the $2.8m benchmark idea from another comment above, but make it slightly higher at a straight $3m. This is because of the massive potential in the network, whether or not it is already making enough to justify that (or maybe more?!). Presumably someone with the right products could come along and just “tap into” the network and sell things all over. So for that reason I put it slightly higher at $3m, but I really have no serious clue! Wouldnt be surprised if it’s a great deal more. If Im close you can contact me by email!

  10. Jon

    09|Nov|2007

    Ooh one addition- do we calculate the worth of the employees? Because I recognise some of those names for example. So if they are part of the worth of Splashpress in numerical terms they surely add to the price again. Hrm.. now I am thinking more than $3m, but Im gonna stick with that.

  11. Aditya

    11|Nov|2007

    I have spent a lot of time trying to determine various web properties and here is how I assess their value. There are a number of conditions that come into play.

    First of all, how much did the site/blog/network cost to create? How much was the software behind each website and how much did all the designs of the sites in the network cost? Provided that large amounts of money were not wasted (such as spending $5,000 on a blog design that could have easily been created for $750), the network should be worth at least the sum its parts and what was spent to create it.

    Secondly, how much money does the network make? With reputable blogs, the value would be around 15x monthly revenue, provided that the blog has been established for at least 20 months and has a growing reader base. The same should apply for other websites where no product is directly being sold. Services, like WordPress Design and Consulting should also sell for around 15x monthly revenue, provided again that the company has is showing an upward trend in terms of revenue. Products, like BlogHoster, should sell for 24x monthly revenue as the product has already been created and the buyer would only need to work on upgrading/improving it, and acquiring new customers.

    Next, we have free wordpress themes. While designing services are valuable, free themes are not exactly money makers. Hence, $1000 should be added to the price for each free theme that Splashpress owns, except for themes like Cutline that have become incredibly popular. These themes should add at least $10,000 to the asking price.

    Last but not least, a small premium should be added for blogs that have become a leader in their niches. Seeing each blog’s Technorati Rank is a good way to do this. I believe that an extra $25,000 should be added (per blog) if it is in the Technorati Top 100, $15,000 if it is in the Technorati Top 250, $8-10,000 if it is in the Technorati Top 500, and $5000 if it is in the Technorati Top 1000. An extra $3000 can be added for each blog in the Technorati Top 5000.

    Adding these values together should give an accurate value of the network’s worth.

    A social network for bloggers could add a lot of value to the network however, with many networks selling for as much as $70 per monthly unique user. While there is great competition from MyBlogLog’s, and IZEA (PayPerPost’s) upcoming SocialSpark network and $70 per unqiue monthly visitor is far from guaranteed, adding a blogging social network could reasonably fetch either 24x-30x monthly revenue (if monthly unique visitors was within a few hundred thousand visitors). If traffic increased to 500,000+ unique monthly visitors, the social network could easily add a million dollars or more to the value of SplashPress. Off course, the hard part would be to acquire so many members, but the current reach that the SplashPress network has would definitely kickstart the project.

  12. Karan Goyal

    14|Nov|2007

    Who Won ?

  13. How Much is a Blog Network Worth? | BlogOnExpo

    14|Nov|2007

    […] Media, a network of blogs and blogging related products and services, recently had a contest to ask how much a blog network was truly worth. (I was a partial winner of the competition) A few […]

  14. Case Study: The Value of a Blog Network

    28|Aug|2008

    […] months ago I entered a contest by SplashPress Media, a network of blogging related websites, about what the value of a blogging network like theirs was. I came in tied for first place so thought I would share my answer below: I have spent a lot of […]


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