You’ve built a blog and now you want to know what it’s worth? Our first recommendation: Don’t rely on the value estimates of web tools! Instead, you can find out here what the value of a blog is made up of and how and where you can find suitable buyers. In addition, our Treasurhunter experts will be happy to help you with a personal consultation. You can contact us anytime and we will evaluate your website free of charge, professionally and within 48 hours.
Online tools are only of limited value
There are several web tools on the market that express the value of a website directly in euros or dollars after just a few clicks. For this, you either only have to enter the domain name or answer a few questions about current revenues, newsletter customers, etc.
Blogger Peer Wandiger had the value of his blog “Selbstaendig-im-netz.de” estimated by several online tools. The result:
Websiteoutlook: 21.000 Dollar
Siteworthtraffic: 6.244 Dollar
Siteprice: 14.697 Dollar
Worthofweb: 43.653 Dollar
As you can see, the difference is huge and you can by no means rely on it. However, a solid basis for a price can only be the calculation with real numbers. You can calculate these using various methods.
Value of the blog is to be determined on the basis of profits
If you are already making money from the blog, the value can be easily calculated based on existing revenue.
Rule of thumb: The value is calculated from the EBIT, i.e. the average monthly profit multiplied by a factor, a so-called Multiple
The average monthly profit (income – expenses) is usually calculated from the last 6 months. Sometimes 12 months are used and for large blogs sometimes 2 years.
Example:
EBIT of the last 12 months: USD24,000 / 12 = USD2,000 average monthly profit
Valuation with multiple of 20: 2.000 x 20 = USD40.000 Valuation for multiple of 30: 2.000 x 30 = USD60.000 Valuation for multiple of 40: 2.000 x 40 = USD80.000
How does the multiple result?
The multiple results from the industry standard, i.e. ultimately the current market dynamics at which the asset class is currently traded in the respective market. In addition, risk factors or opportunities of your digital asset also play a secondary role.
Risk factors that reduce the multiple may include:
- Negative traffic development
- Falling social media key figures
- Stagnating to falling revenues
- Skyrocketing costs
- Negative SEO development
- Content that is not unique or is of inferior quality
- Total revenue is generated predominantly from a single source of revenue
- Total traffic comes 90%+X from a single traffic source
- Unnatural link building and other SEO risks
Opportunities that can increase the multiple:
- Strong increase in traffic over a longer period of time
- Sales increase (constant without drops)
- Positive SEO development
- Broad diversification of traffic
- Broad and increasing diversification of monetization
- Great potential (e.g., through content areas that have not yet been implemented or strategic growth potential)
Other factors affecting the multiple:
- Current market situation
- Investment strategy of the buyer
- Optimization potential in the area of monetization (EpV = earnings-per-view below market level)
- How owner-dependent is the content and does the founder stay on board after purchase?
The average multiple is around 30, according to the largest U.S. content asset sales platform empireflippers.com and flippa.com.
This is about the average profit your blog is expected to make over the next 2.5 years.