Today my very good friend Tanmay Mehta has asked me,

“"Hi , Asav I have read your blog , its good BUT how you have calculated valuation for it. please guide me because I also want to calculate the same for my blog"

Well, Honestly speaking, right now there is NOT any STANDARDIZED Blog Valuation System that is worldwide acceptable.

I Personally Calculate the Valuation of “My Journey To Billionaire Club” by Technorati’s Blog Net Worth Software. Here is a Link. Go to this link and check the valuation of your Blog.

Why I consider this method FAIRLY accurate?

Well, because it is based on Tristan Louis’s Research method. This is the method by which AOL bought Weblogs inc., the two year old weblog network founded by Jason Calacanis and Brian Alvey, for a number that is rumored to be anywhere between $25 million and $40 million.

Weblogs Blog Network has been acquired by AOL for anywhere between US $ 25-40 Million and the valuation of weblogs was done by this method. So I consider this method a fairly valid method.

This is a Link to Value Method of Blog Valuation means how many links your blog receives from other sites. According to AOL, it is a perfect method for valuation and that’s why I personally use this method.

But Tanmay, Here I want to tell you that the above is accurate but not the complete Blog Valuation System. According to my study and analysis, Blog is a Business (Company) and its owner is CEO. So the Valuation of any Blog depends on the following criterias.

Read this post thoroughly,

The Twenty-Five Most Valuable Blogs

The above post is a very lengthy but if you are really interested in increasing the valuation of your blog than the above post will prove the wealth of Information for you.

Anyway, an Ideal Blog Valuation System should consider the following criterias.

01) Web traffic -

- Visitors (Average Daily & Monthly AND Unique Daily & Monthly Visitors)
- Page Views (Average Daily & Monthly)
- Detailed Analysis of the Web traffic [Direct, Referral & Organic (Search Engine) Traffic Analysis in detail]

02) Google Page Rank – 0 to 10

03) Alexa Traffic Rank -

04) Technorati Rank –

05) Google AdSense Revenue – Last 3-6 months statement

06) Detailed Analysis of Google AdSense Revenue -

- CTR (Click Through Rate)
- eCPM
- Daily & Monthly Page impressions of last 3-6 months

07) Other Income streams -

- Affiliated Marketing
- Amazon store
- e-book selling
- Any other Digital Goods or service selling
- Any other Income stream of the Blog (Such as Paid Reviews…etc…)

08) Feed Count – Reader Base

09) Twitter Count – Twitter Followers

10) Social -

- Facebook Groups
- Facebook Fan Page
- Orkut Communities
- My Space Communities
- Any other Social aspect of the Blog

11) Discussion Forum(s) associated with the Blog (if Any) -

12) Google Indexing – How many pages are Indexed with Google

13) Blog Archive Size – The size of the Content Inventory (Articles)

14) Number of Active Authors on the Blog Board

15) Demographic Study (Geographical Distribution) of the Web traffic – Google Analytics

16) Blog Reviews – Over all reviews about the blog in the Blogsphere and on the web

17) Technorati’s Net Worth of Blog – from Business-opportunities.biz blog

18) Brand Value of the Blog – Blog Popularity – How much popular the Blog is?

19) Average Number of Comments per Post -

20) Projected Revenue of the Blog -

21) Yahoo Back links -

22) Google Site Links – you can test it by typing Link:xyz.com in the google search box.

23) Value of Domain Name – In some cases, Domain Name itself is very valuable than the Blog itself. Such as the domain name loans.com sold for US $ 3 Million…!!!

24) Web Hosting Details -

25) Monthly Blog Expense -

- Web Hosting Expenses
- Expenses behind Authors
- Blog Advertising & Marketing Expenses
- Paid Blog Reviews Expenses
- Any other Expenses that incur every month
- Any other variable expenses

26) Original Owner Issues -

- Weather Original Owner will continue for some time on the blog or not?
- Weather Original Owner will provide a support to the new owner in running a blog or not? If yes than for how much time?
- How will the new owner run the Blog without the presence of the old owner?
- Weather the new owner has to higher the authors to run the Blog? And if yes than how much it will cost?

27) Valuation of Most Popular Articles – Most Popular articles are those which are search engine friendly and may rank on the first page of Google search result and are responsible for most of the web traffic. So the owner of the blog may want a Royalty (Premium) for these articles. And if yes than How Much?

28) SEO Articles Valuation – Sometimes a Blogger may have invested in SEO Articles by paying as high as $ 10- 20 per article to SEO writers. So these articles are also an Asset and their Separate Valuation is very necessary.

29) Valuation of EzineArticles Inventory (portfolio) – Some Blog owners also own a portfolio of Articles at reputed web directories such as Ezine Articles. These articles are the Asset because they not only send the huge web traffic but also provide the Back links to the main blog which improves its search engine ranking. So Separate Valuation of this Portfolio should be done.

Finally, the ideal Blog Valuation should consider all of the above criterias before a buyer actually buy a Blog. Otherwise the buyer may end up with loss of his Capital…!!!

If you have any suggestions on these Blog Valuation Criterias than please let us know by commenting on this post…!!!