Buy Sell Trade - Everything Must Go!
Mike has an interesting post on valuating your blog, using a calculator developed by Dane Carlson’s Business Opportunities Weblog based on the AOL-Weblogs, Inc. deal.
According to it, my blog is worth $81,293.76.
If you have the cash, you might be able to consider that a done-deal! Send me an eMail…
Realistically, however, your blog is only worth what someone is willing to pay for it or whatever revenue you can generate from it yourself, whether it’s over $20,000 per month like John Chow or $1.63* per quarter.
Whether you are looking to sell your blog, or buy someone else’s, there are five parts of the blog that you need to be aware of to make sure you and your buyer/seller are getting what you both expect.
DOMAIN NAME
A blog may have its own domain name, or be a subdomain of a blogging site, such as Blogger or WordPress. In the latter, the blog doesn’t really own a domain name, except for its use of a subdomain, which can probably be transferred to a new owner. (Might want to check the fine print on those terms you agreed to but probably never read.) In almost all cases, the new owner will want the domain name as part of the sale. In cases where the buyer does not want to give up the domain name, the seller should negotiate for the buyer to use a 301 redirect to redirect traffic for a period (at least 6 months) to deliver users to whatever the new domain may be. (More on traffic later. Well, next…)
Bear in mind that if your domain name is, ahem, your name, that may make it more difficult to sell, unless you plan on working under contract with the new owner to continue working on the blog. Still, it would be unusual. If you do have plans of eventually selling your blog, you might want to use a domain name that is not your name. It will be easier for a new owner to takeover and, thus, more attractive to potential buyers.
Then again, it is not without precedent to sell a domain name that is a person’s name, especially in cases of retirement or death. A new owner may continue on with the previous owner’s legacy or philosophy. So, it is definitely not a deal-breaker and, for the right amount of money, a blog sale could be an early retirement.
TRAFFIC
A sale will generally include the presumption of traffic as well. The seller should be prepared to provide stats to back up any traffic claims. It is rare where a sale might not include traffic (such as an “asset sale”) but traffic is usually a major selling point. As mentioned in the Domain Names section, the buyer should make sure to negotiate a redirect (specifically a 301 redirect) to ensure traffic retention should a domain name transfer not be part of the sale. A basic “we have moved” HTML link is not going to cut it. Make sure it is a 301 redirect! It’s very important for search engine traffic.
CONTENT
The sale of a blog will typically also include content, unless it is a “domain name only” sale. The content is what keeps bringing people back, so the buyer will want to make sure to include that in the sale, unless they are only interested in the domain name. The buyer should also be aware of the content’s ownership. Is it owned or merely licensed by the seller? If it’s under license, will the content owner allow that usage license to be transferred to the blog’s new owner? The buyer should also find out any licensing fees before completing a purchase. If the content consists mainly of links to other sites, the buyer should also consider whether he is willing/able to find such links for future postings, or if he will have to contract with the seller or someone else to do that for him.
The seller should also note whether all the blog content is for sale, or if certain portions will be excluded from the sale. For example, a fiction writer may be willing to sell their blog and all the content except for any fiction they’ve published on the blog, in whole or in part. For example, if I were to sell my blog, my story, “Darnella,” would not be included in the sale.
HOSTING
A blog sale may or may not include hosting. If the seller has paid up their hosting for x number of months, that prepaid hosting may be included as part of the sale. If the seller pays monthly, the buyer will have to be prepared to pick up the hosting fees, or move the blog to their own server or preferred web host. The seller might also have a prepaid hosting account, but not include that as part of the sale if they plan to launch a new site.
SOFTWARE
Software is something that is often overlooked. A blog may be using free software with an easily transferrable license. In some cases, it may be using fee-based licensed software, which may or may not be transferrable and may or may not be included as part of the sale. The seller should make the buyer aware of any software licenses that may need to be purchased in order to continue operating the site. Otherwise, the buyer will need to plan a transfer to a new platform. Some blogs may also have special server requirements, which the seller should point out so that the buyer can find an appropriate web host. The buyer should also be sure to inquire about these things in case the seller has forgotten.
Whether you are looking at buyer or selling (or even trading) a blog, make sure you cover all the bases. Being informed about these five parts of a blog sale will help to ensure a smooth transition and that both parties are fully aware of what they are getting out of the deal.
*Again, a made-up number. But, it’s a running theme.
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