Comments on: Splashpress Media’s Worth? A $1,000 cash prize!! http://www.splashpress.com/2007/worth-value/ Splashpress Media Wed, 20 Aug 2008 16:45:02 +0000 http://wordpress.org/?v=2.2.2 By: How Much is a Blog Network Worth? | BlogOnExpo http://www.splashpress.com/2007/worth-value/#comment-25 How Much is a Blog Network Worth? | BlogOnExpo Wed, 14 Nov 2007 03:48:28 +0000 http://www.splashpress.com/2007/worth-value/#comment-25 [...] 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 [...] […] 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 […]

]]> By: Karan Goyal http://www.splashpress.com/2007/worth-value/#comment-24 Karan Goyal Wed, 14 Nov 2007 01:53:28 +0000 http://www.splashpress.com/2007/worth-value/#comment-24 Who Won ? Who Won ?

]]> By: Aditya http://www.splashpress.com/2007/worth-value/#comment-20 Aditya Sun, 11 Nov 2007 00:22:06 +0000 http://www.splashpress.com/2007/worth-value/#comment-20 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. 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.

]]> By: Jon http://www.splashpress.com/2007/worth-value/#comment-15 Jon Fri, 09 Nov 2007 15:31:49 +0000 http://www.splashpress.com/2007/worth-value/#comment-15 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. 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.

]]> By: Jon http://www.splashpress.com/2007/worth-value/#comment-14 Jon Fri, 09 Nov 2007 15:29:18 +0000 http://www.splashpress.com/2007/worth-value/#comment-14 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! 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!

]]> By: AJ http://www.splashpress.com/2007/worth-value/#comment-10 AJ Wed, 07 Nov 2007 19:22:37 +0000 http://www.splashpress.com/2007/worth-value/#comment-10 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. 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.

]]> By: Evaluate Splashpress Media’s Worth and Win ,000 | Blogger Trail http://www.splashpress.com/2007/worth-value/#comment-9 Evaluate Splashpress Media’s Worth and Win ,000 | Blogger Trail Wed, 07 Nov 2007 17:21:58 +0000 http://www.splashpress.com/2007/worth-value/#comment-9 [...] 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 $1,000 change to the prizewinning “worth evaluation” of [...] […] to a business, and we would same to undergo your thoughts most how such you conceive we are worth. For the prizewinning “worth evaluation” we module wage a accolade of US$ 1,000. So here’s the deal. We’ll wage $1,000 change to the prizewinning “worth evaluation” of […]

]]> By: Rob http://www.splashpress.com/2007/worth-value/#comment-8 Rob Tue, 06 Nov 2007 18:32:50 +0000 http://www.splashpress.com/2007/worth-value/#comment-8 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. 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.

]]> By: Quick Online Tips http://www.splashpress.com/2007/worth-value/#comment-7 Quick Online Tips Tue, 06 Nov 2007 17:25:34 +0000 http://www.splashpress.com/2007/worth-value/#comment-7 <strong>Guess Splashpress Media Network Worth to Win $1000...</strong> 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... 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…

]]> By: Vishal http://www.splashpress.com/2007/worth-value/#comment-6 Vishal Tue, 06 Nov 2007 14:44:18 +0000 http://www.splashpress.com/2007/worth-value/#comment-6 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 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

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