Friday, October 28, 2005

Interesting idea: Using the AOL-Weblogs Inc. deal to determine blogs' monetary value

I can't vouch for the methodology, but blogger Tristan Louis has developed a process for determining the value of a blog based on the amount paid by AOL for Weblogs Inc.

"In acquiring Weblogs Inc., AOL has now provided us with some numbers traditional media are willing to pay for a blog. Looking at the numbers above, one can try to guess at the value of a link from an external site. a single link on the weblogsinc network represents 0.002258559942180087 percent of the overall network.

Based on Louis' research, blogger Dane Carlson has developed a tool to help bloggers determine how much their blogs are worth.

According to their methodology, Insert Tech Here is worth $1,693.62 as of today. For comparison, the least valuable blog AOL acquired in the deal, Blogging E3, is worth $564.64, while the most valuable, Engadget, is worth $7.5 million.