An Offer To Buy My Blog
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I recently received an offer to buy my blog for $4,000. The person mentioned it’s negotiable, so let’s say I could have sold it for $6,000. I refused. You may think that I should have sold it and then just plowed my efforts into a new blog, but I decided that $6,000 (before taxes) really doesn’t “move the needle” enough. I mean sure I’d love to have a few more grand in my bank account, but I really haven’t worked hard at this blog for a couple years for a few grand.
Most bloggers and internet entrepreneurs work hard for a larger pay out down the road or some kind of stable decent passive income. For me, my goals here are to either establish an income stream that is generated approximately $1,000 and up per month and/or potentially sell the website itself in the tens of thousand dollar range. Will I get there, we’ll see.
A general note on selling a blog or website, but it seems like many times companies or individuals will want to buy a blog or website if it ranks high for a specific keyword. They can then leverage such a position for their business use. Since I really don’t rank that high for that many keywords other than “20s money” or “20smoney” I haven’t received any lucrative offers based on this idea. Maybe I should have focused more on naming my blog after a lucrative search term.
It is interesting to receive your first offer to buy a business or website, even if it is only for a few grand. Hey, I like the direction at least.
I sold a web site for $1000 a few years back. It was getting pretty decent traffic, but I wasn't making me much money at the time. From what I can see, they haven't improved the site at all, but do run a few ads on it. Maybe they made a profit, but I doubt it.
If you think your site has potential to keep growing and provide you with a growing income, then certainly don't sell it.
Another thing to consider is that the person buying may want you to sign a no-compete clause so you couldn't start a new site in the same niche. If this is what you love you would have to find something else to write about.
Here's the way to think about it guys. If you generate $12,000/yr in income… you need about $300,000 of cash in the bank to generate $12,000 a year in interest income at 4%. Obviously, that takes zero work vs. a blog, which is a lot of work.
So perhaps the right value is $100,000. At that rate, if a blog was making $12,000 a year, that is a 12% yield. That's good for the buyer AND the seller.
$6,000 is a slap in the face!
Actually blogs tend to sell for 12 to 24 times monthly revenues. Thus if your monthly revenues are $300, then you wouldn't get more than $7200 for your site.
FS,
Your calculation is ignoring the fact that you are not paying yourself a salary while you are blogging. If you have to pay someone to write content for you, you would most likely see little if any profits…
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