The Blog Herald Sells for Over $60K

Posted on January 16, 2006

The Blog Herald is reporting being sold. Jeremy Wright reports from Ensight that the Blog Herald, a blog providing blogging news written by Duncan Riley, is being sold for over $60,000 in a private auction.

Jeremy Wright says, "The current high bids are 60K, 65K and 72K. The private auction will be ending today sometime, after which we'll get down to the business of sorting out the transaction. Once that's all done, we'll be announcing the winner at whatever time works best for the winner."

Wright also says, "The current high bidders are all looking at the blog as a brand / profile investment more than a pure cash investment. After all, 36 times monthly revenues is a fairly high multiple for any site, even if it experiences 10% growth every month (as Blog Herald does) and could earn more. At 72K, it would likely take someone about a year to earn it back with a redesign and with the growth it's experiencing."

If a website makes $2,000 per month that's about $24,000 a year so it is selling for three times annual revenues if it goes for the highest bid of $72,000. Stowe Boyd thought the blog could have sold for higher: "I think highly focused blogs, like TBH, will drive good value, even if the original authors step down. Still, I would have imagined that a blog that is ranked 183 on Technorati would have brought more than $60 or $70K."

It's much lower than the price valuation that tnl.net came up with that used inbound Technorati links and was based on the Weblogs, Inc. sale to AOL. This calculation shows a number way over $800,000 -- but everyone knew those numbers were way too high anyway.

Tin Finger writes that Duncan Riley is the first Aussie to cash out on Web 2.0.

Update: Duncan Riley now has a post of his own about selling his blog.