Site Valuation for a Low Income Blog With Great SERPs?

sashas · 08-19-2009, 03:10 AM

What metrics would you use to value a blog with low income (~$10 per month) but great SERPs? I'm talking among the top 5 results on Google with over 7 million competing results, on a one word keyword in one of the most popular music niches.

Since the revenue is low, I can't judge merely by revenue multiples. The revenue could be a lot higher, but I'm not too good at monetizing traffic (which is approx. 100+ a day). The content is unique, so is the design, and the domain itself is worth x,xxx

So what metrics would you use?

CliveG · 08-19-2009, 04:53 AM

Hi sashas,

I normally value any established IM income stream by looking at its net annual income and applying a multiple which ranges from 0.5 to 10 depending on the riskiness of the income. By riskiness I mean how likely the income stream is to continue at its current level. Having said that, I have bought very little using this basis and I prefer not to sell my own interests (although I would if I got a "silly offer").

Valuing an early stage IM income stream is very difficult because it is not known how much income your traffic can be converted into. I have always regarded selecting a great niche and getting traffic to be the hardest parts of IM so I would work harder on the monetization aspects before trying to sell the site. Even with Adsense you should be able to achieve more than $10 per month with more than 100 visitors per day.

Cheers,

Clive

sashas · 08-19-2009, 06:12 AM

Thanks Clive.

The niche has a very low CPC (music niches hardly pay anything on Adsense). That, along with my own relative inexperience in monetization means that I have a terrible CTR (~1%).

Thanks again for your advice.

08-19-2009, 03:10 AM	#1
sashas The Domain Guy War Room Member Join Date: Sep 2008 Location: New Delhi, India Posts: 371 Thanks: 29 Thanked 37 Times in 29 Posts	Site Valuation for a Low Income Blog With Great SERPs? What metrics would you use to value a blog with low income (~$10 per month) but great SERPs? I'm talking among the top 5 results on Google with over 7 million competing results, on a one word keyword in one of the most popular music niches. Since the revenue is low, I can't judge merely by revenue multiples. The revenue could be a lot higher, but I'm not too good at monetizing traffic (which is approx. 100+ a day). The content is unique, so is the design, and the domain itself is worth x,xxx So what metrics would you use?

08-19-2009, 04:53 AM	#2
CliveG Advanced Warrior War Room Member Join Date: Apr 2009 Location: Cornwall, United Kingdom Posts: 656 Thanks: 14 Thanked 47 Times in 46 Posts	Re: Site Valuation for a Low Income Blog With Great SERPs? Hi sashas, I normally value any established IM income stream by looking at its net annual income and applying a multiple which ranges from 0.5 to 10 depending on the riskiness of the income. By riskiness I mean how likely the income stream is to continue at its current level. Having said that, I have bought very little using this basis and I prefer not to sell my own interests (although I would if I got a "silly offer"). Valuing an early stage IM income stream is very difficult because it is not known how much income your traffic can be converted into. I have always regarded selecting a great niche and getting traffic to be the hardest parts of IM so I would work harder on the monetization aspects before trying to sell the site. Even with Adsense you should be able to achieve more than $10 per month with more than 100 visitors per day. Cheers, Clive

08-19-2009, 06:12 AM	#3
sashas The Domain Guy War Room Member Join Date: Sep 2008 Location: New Delhi, India Posts: 371 Thanks: 29 Thanked 37 Times in 29 Posts	Re: Site Valuation for a Low Income Blog With Great SERPs? Thanks Clive. The niche has a very low CPC (music niches hardly pay anything on Adsense). That, along with my own relative inexperience in monetization means that I have a terrible CTR (~1%). Thanks again for your advice.