$224.27 per day of economic value created per day per blog by me

May 26, 2006 – 11:20 am

by Darren

Now I hate to “toot my own horn”, and this may come back to haunt me, but I had a rather profound thought today because of something I read at the WhyMyBlogStinks Blog.

We’ve all seen the tool before: a clever viral marketing tool that computes the value of your blog based on a few factors. Dane Carlson created the tool, and I’ve linked to him a few times, so I don’t question the marketing value of the tool. If his calculations are right (and they really could be, because they’re based on a real-life transaction involving Weblogs Inc), then a stunning picture of the economic potential of blogging has emerged. Let’s look at the numbers. $16,371.66/73. The numbers are: the economic value of this blog and the number of days I’ve been blogging. If true, a very impressive portrait of the financial impact of blogging is painted:

Big Money Blogging

According to calculations, I’m creating $224.27 per day because of my blogging activity, and that’s just on one blog. Imagine a person maintaining 10 blogs (I’ve only averaged around 1 post per day at the Blog Republic) and you can see the enormous potential to make big money while blogging. That would be $81,858.55 U.S. dollars per year per blog created.

All you’d have to do to unleash the value of this potential money is sell your blog or blog network to a motivated buyer. With content networks rising in value each day, it’s a scenario that is very possible. Sometimes in bubbles, you might even get a lot more than the economic value of your created works. In any event, the next time you think you’re not making any money because the AdSense pennies aren’t rolling in, do not despair. The real value is in the worth of your network or blog, which your rapidly improving every day. At some point, this will add to your net worth. Adding a blog to an existing website can make your totals go even faster.

Keep in mind, this is from a small network (husband and wife) who are both new to blogging. (We dabbled for a year but got serious in March 2006). I have a sneaking suspicion that the economic value of each day blogging will get even higher the more established you are, and the quicker you can gather incoming links. Momentum is everything in blogging.

  1. 11 Responses to “$224.27 per day of economic value created per day per blog by me”

  2. Darren, it really gets the wheels turning in one’s mind to at least see some dollar signs put up there next to their blog’s name. And I think your blog may well be worth that amount of money and more, if not in terms of direct monetizing, then certainly in terms of mindshare and connectivity with others in the world. I mean, I know you, so you’ve got one degree of separation from everyone I know, and so on. And vice versa. It’s a very interesting topic to say the least.

    By Easton Ellsworth on May 26, 2006

  3. Excellent insight — you’ve thought up a use for the data that I hadn’t envisioned!

    By Dane Carlson on May 26, 2006

  4. Easton,

    It does indeed. Because my original intention when I started the network/blog was to “sell it” at an inflated price. Almost any arbitrary number could be true for a valuation, but the point is: people worrying about the income might be missing the point. Blogging for dollars means getting the money any way you can. If you get paid all at once, so be it. You guys really got me thinking with your conversation today, thanks for the input, as always.

    Maybe we can find Dane Carlson to comment about his imputed value calculation.

    By Darren on May 26, 2006

  5. I thought that this was a good tool. I’ve had it on one of my blogs for a while now, just because “why not?”

    At least it places some economic value on your work.

    By Heather on May 26, 2006

  6. Like anything else, at least it sets a relative value, and gives you some idea that what you’re doing is paying off. It’s the “Real Estate Investor Theory of Blogging” which I’ll write about more soon.

    People are way too obssessed with the current income, when selling out the website is the real money.

    By Darren on May 26, 2006

  7. Websites are real estate. With ever increasing value, IMHO.

    Media is changing a lot, with the internet gaining strides every day and there is strength in numbers.

    By Heather on May 26, 2006

  8. Heather I think of websites as real estate as well. The more you take care of them the more value they hold, just like a home. If you let it crumble it won’t be worth as much. We should treat our websites like a true investment and learn ways to increase its value.

    I think the tool used is a good way to put things in perspective but we always have to remember that something is only worth what somebody else is willing to purchase it for.

    Steve

    By Steve Remington on May 26, 2006

  9. Steve, the values can go up and down, for sure, but I think as long as you remain active and dilligent, the numbers are extremely likely to go up.

    For one thing, the “new media” idea of blogs is really taking off, as is the “Web 2.0″ idea of a lot of communication with visitors. Blogs are a great way to keep in touch with people, so a growing blog is a powerful media instrument. For that reason, someone will buy the property, almost always.

    By Darren on May 27, 2006

  10. A quick update for anyone reading. The blog is at $17,500 just 3 days later. Looks like the economic value is rising more rapidly now.

    By Darren on May 29, 2006

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