
The 25 Most Valuable Blogs - drm237
http://www.alleyinsider.com/2008/3/unveiling_the_25_most_valuable_blogs
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byrneseyeview
I have never been impressed with the analysis on 24/7 Wall Street. They tend
to be either unoriginal or wrong -- this piece is the latter: these blogs
should be valued as if 80% of them will be marginalized or shut down over the
next ten years. That might value them at something closer to 3X-4X operating
profits.

Of course, one of the big problems with valuing blogs based on operating
profits is that the business profits are a small fraction of the blogger's
compensation; I got my current job because of my blog, but the blog doesn't
generate any revenue. Its value to me is quite high, but I probably couldn't
sell it for more than $50.

I'm not sure what use McIntyre's valuation is supposed to be. Is this
something young bloggers could aspire to -- to sell their online property for
$10 million in a few years? I don't see that as a viable business plan. One
possibility is to consider a blog that gets bought out by a larger media
company -- but in that case, the buyer is looking for the writer's talents,
not the URL and archived posts, so the best way to value a blog is to compare
it to the cost of a journalism degree and a lunch appointment with an editor
at the _New York Times_.

