The real estate investor’s theory of the value of blogging

May 28, 2006 – 10:08 am

by Darren

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The other day, I realized that I was creating economic value every day when I blog, regardless of what my current income is. This was a very comforting thought indeed. Every where around the world, men, women, and even girls, are blogging around the clock, hoping desperately someone will click on their “Chitika or Adsense” ads. “Oh please, internet visitor, if you’d just click on my ad…my blogging could pay for a new car, or at least a hosting account”. The logic is sound, the people are not wrong to think that way. But, and this is a big but, they’re leaving money on the table and missing the big picture. The big money in blogging doesn’t just come from monthly income. The really big money comes from selling your whole blog or blog network, for a value that’s higher than the current income. Real estate investors do it all the time, and now, so do bloggers.

Mansion

Real estate investors make big money by holding something until it goes up in value, and then they sell it. You buy a house, you invest time and money, and you find a buyer who pays you more money than you did. The profit is yours. My rich Uncle John, did this many times last year and amassed a bigger fortune than the one he already had. He’d take a property that didn’t appear to have much potential, and then sell it to someone else, once he’d sold them on the property’s hidden potential. My friend, blogs are no different. Blogs have a “value” relative to an overall market, and they can bring you whatever you sell them for.


Let’s picture a scenario: you start blogging, you make a trickle of income, but you build a readership that is active and vibrant. You might only be making $1,000 per month, but your website has “buzz” and it’s a topic where a deep-pocketed advertisers are willing to BUY your website for much more than your current income. You take $50,000. Looks like you ended up having a better year than you dreamt possible. Can this be done? Easily. It’s easier than ever to sell a blog, website, or entire network. Websites are completely portable, and are properties that are much better than houses or businesses in many other industries. Every day you blog, you increase the economic value of your blog as well as the entire internet. Each day, your stake in a profit-building enterprise increases, and the sellout value of that enterprises increases. If you ever feel frustrated because your current income isn’t high enough: change how you look at blogging and see the big picture. Quality blogs can be SOLD the same way any business can be, and you might end up with a much larger windfall than you make from posting.

I’d love to hear your thoughts. Do you think of blogging as a portable business? Do you have a business model, and most importantly, an exit plan?

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    1. 4 Responses to “The real estate investor’s theory of the value of blogging”

    2. That’s a nice angle on blogging, Darren.
      I was reading an article about a poll showed that most Americans wanted “instant gratification”, and lacked patience.

      I’m sure this is the main reason people that endeavor into blogging run into troubles. Most will quit blogging before the blog even gets a chance to survive.

      If a blogger is focusing solely on making money using Google ads or Chitika, they are almost sure to be let down with their earnings.

      Thinking bigger opens up opportunities for those that are willing to work diligently and consistantly to make their work a success.

      By Heather on May 28, 2006

    3. Thanks Heather, of course we all want it now. Who can blame us? But, if we’re patient, we can make even more money.

      Sometimes we have a tendency to overlook the forest for the trees, as the saying goes.

      By Darren on May 28, 2006

    4. ..without the trees you don’t have a forest..
      ;)

      By Heather on May 29, 2006

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