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6:48 pm December 2, 2011
| Sandy @ yesiamcheap
| | New York, NY | |
| Member | posts 802 |
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Do you think that your blog is worth or would sell for $1,000,000 or more? I just saw this article from Dough Roller. My eyes popped out of my head when I noticed that I KNOW some of these people.
http://www.doughroller.net/mak…..n-or-more/
Does your blog have what it takes to get to this level? Are you being distracted by pennies and short-term gains now in exchange for long term potential? What do you think that it would take to get to this level?
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6:54 pm December 2, 2011
| BeatingBroke
| | North Dakota, USA | |
| Member | posts 860 |
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I think the important thing to remember with nearly every one of those sites on that list, is that they've been at it for far longer than most will even stick with it. And, when we see sites like that sell for that kind of money, we wonder, "why not me", forgetting all the hard work and time that the owners of those sites have put in. I'll admit to pangs of jealousy when I see articles like that. But, when you get past those pangs, all it really does is double my resolve to work harder and see where I can go.
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7:15 pm December 2, 2011
| Watson Inc
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| Member | posts 371 |
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Post edited 7:42 am – December 3, 2011 by Watson Inc
I'm not jealous at all. Almost everyone on the list I've interacted with in some capacity, and they were more gracious than I deserved. I'm happy for their success genuinely because it's inspirational (not just because they are bloggers).
I'm definitely not distracted by pennies. I was at one point but haven't been for the last 18 months :) (Disclaimer, for nearly 7 of those months I didn't blog at all). I am still deciding exactly where I'm going though. I enjoy the journey and fulfilling my current goals (positioning it for selling isn't one of them), but cheers to anyone who is going in this direction!
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7:51 pm December 2, 2011
| Sandy @ yesiamcheap
| | New York, NY | |
| Member | posts 802 |
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BeatingBroke said:
"…they've been at it for far longer than most will even stick with it."
Agreed. They have a serious knowledge base between them. I've watched about three of these guys over the past few years and they share a couple of traits:
1. FOCUS
2. Dedication to their topic
3. Consistency in publication schedule
4. Their blog is a little about them and a lot about their readers
5. No "empty jacket". They might have staff bloggers but they all also individually write posts as well.
6. They have authentic voices to which readers relate.
I love seeing what can be done when we don't get distracted.
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8:00 pm December 2, 2011
| Shannyn @FrugalBeautiful.com
| | Chicago, IL | |
| Member | posts 261 |
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The blogs I've read that sold for $1Mil all provided something of value (great content) and I'm glad the buyers (WSJ etc.) recognized the value and community these bloggers were able to build. I was totally psyched to read those numbers- I had no idea that Consumerism Commentary sold but if so, that's flippin' awesome!
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8:37 pm December 2, 2011
| Sustainable PF
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Well said. And as Sandy followed up, she has been following them for YEARS – and they've been at it much longer than that.
Where I find intrigue is that some of the "founders" of "personal" finance blogs are now owned by MAJOR corporations. We're not talking $3k, $10k, $30k blogs anymore – the new owners are giants.
It will be interesting to see how the value of websites (ahem, Facebook anyone? Twitter?) grows over time. We can get all of our phone, data, web, and TV via internet. The Internet is the new mega-medium for information.
Long term established sites have a ton of value.
BeatingBroke said:
I think the important thing to remember with nearly every one of those sites on that list, is that they've been at it for far longer than most will even stick with it. And, when we see sites like that sell for that kind of money, we wonder, "why not me", forgetting all the hard work and time that the owners of those sites have put in. I'll admit to pangs of jealousy when I see articles like that. But, when you get past those pangs, all it really does is double my resolve to work harder and see where I can go.
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8:44 pm December 2, 2011
| krantcents
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I can only hope to achieve anywhere close to those numbers. I may even settle for a lot less.
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8:49 pm December 2, 2011
| My University Money
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I would have to think hard at 10K, for 100K I'm doing it without thinking, so I guess that answers your question about becoming a millionaire eh? I love blogging, but I'm not in love with my specific blog. I love having a voice on the web and interacting with everybody, but I can do that from a new blog or catch on writing for someone else.
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9:22 pm December 2, 2011
| MyJourneytoMillions
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I think it is important to point that most bloggers will never get offered shit for their blog nevertheless 1% of $1,000,000 (equals $10K)…so do it because you love it.
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9:47 pm December 2, 2011
| Squirrelers
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Not much surprises me these days – once you've had enough life experience, that's how it goes.
However, this does surprise me, in terms of the number. Amazing, and very impressive. What does everyone think of the multiple of earnings that might be used in these purchases? 2x? More?
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10:24 pm December 2, 2011
| savingadvice
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All those guys put in long, long hours and started when there wasn't even a way to make money blogging and it paid off handsomely. Great props to all of them. All of your blogs are much more valuable that you realize. In fact, I'm surprised that certain companies haven't started to buy out personal finance blogs rather than advertise on them — I think it is something that you will begin seeing in the not too distant future
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11:31 pm December 2, 2011
| martin
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Who the hell would not sell their blog for a cool mill?
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11:48 pm December 2, 2011
| savingadvice
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Post edited 11:49 pm – December 2, 2011 by savingadvice
md said:
Who the hell would not sell their blog for a cool mill?
I think that it would be a lot harder call if you were actually in their position than it may first appear. You can assume that the blogs were making $10,000+ in income a month or $120k+ a year. While a little over 8 years of monthly income may sound like a ton of money, all the hard work has been done. When you get to that stage, you really don't have to do much if you don't want to. You could easily hire someone for $40k a year to run everything and pocket $80k+ a year while doing very little yourself. While there would certainly be some risks, at the end of 8 years you would likely be making a lot more — so forgoing $1 million up front means you would have an even more valuable blog plus received that $1 million (although over time instead of all at once) and still had to put very little work into the blog.
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3:46 am December 3, 2011
| Derek@LifeAndMyFinances
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Wow Sandy! You have just increased my perception of what's possible in the blogging world! I think my monetary goals are now shifting toward the millions… LOL!
In fact, I was just day-dreaming about what I would do if I had $750,000 in take-home money. First of all, my house would be paid for, and I'd still have $700,000 in my pocket! I can't wait to get to this level. Thanks for lighting this fire under my butt!!! :)
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6:31 am December 3, 2011
| Glen Craig
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I think it is important to point that most bloggers will never get offered shit for their blog nevertheless 1% of $1,000,000 (equals $10K)…so do it because you love it.
Hopefully, seeing what those sites sold for doesn't make everyone think they have a site they can make millions off of.
Can it make money? Yes. Will it make enough to live off of? Depends.
These guys are the outliers. They put in ridiculous time and paved the way for us all. While seeing what they sold for is great inspiration, there's a whole ton of distance between what they built and what most of us have here.
Not trying to be negative, just riffing off what MJTM is saying. If you don't have a passion for what your doing then forget it.
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11:34 am December 3, 2011
| TightFistedMiser
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That list is surprising to me since I read most of those blogs and didn't know most of them had been sold. I do remember when Bankaholic sold though because my Bank Bonuses blog suddenly had a lot more competitors when people saw how much Bankaholic sold for.
I would have no problem selling my blog for a million dollars but nobody would offer me that. If someone offered me $100,000 it would be a tougher decision. If I invested the money in something safe I wouldn't make enough to replace my blog income but the lump sum would be tempting. Nobody will offer me $100,000 either so it isn't something I need to worry about.
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12:27 pm December 3, 2011
| JT_McGee
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Squirrelers said:
Not much surprises me these days – once you've had enough life experience, that's how it goes.
However, this does surprise me, in terms of the number. Amazing, and very impressive. What does everyone think of the multiple of earnings that might be used in these purchases? 2x? More?
Considering QNST (one of the companies doing the buyouts) sells for a P/E of 18, it would seem to me that one could get a pretty hefty FCF multiple. Two times or more is way too low for a company that generates real FCF to the owner. Small sites sell for a 1x multiple because the work the owner has to put in. But I don't see why a much thicker multiple isn't in the cards for sites that can provide an income to the operator as well as to the owner.
I'm guessing 5x. And I have no real justification for it. LOL. *Keep dreaming*
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2:49 pm December 3, 2011
| MoneyIsTheRoot
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Oh yea…1 million and Im starting a new site lol! My minimum is probably $50,000 and I would sell and start over, why not? But yea, I would reiterate what most said, who would offer me that much anyways? Only in my dreams.
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6:14 pm December 3, 2011
| OneCentAtatime
| | Florida, USA | |
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Interesting information. I am not distracted…create value money will come, how much? depends on the value I create.
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9:15 am December 4, 2011
| PK @ DQYDJ
| | The Intersection of Politics, Economics and Personal Finance. | |
| Moderator
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We can also think about what is reasonable before we would consider selling out. If your blog is making $100,000 a year would you sell the whole thing for $500,000? What if the year before it made $10,000 and the year before that $1,000?
Would you be more willing to sell if your income had seemingly topped out?
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