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The Value of Shoemoney.com
By Max | March 30, 2007
In this post, Jeremy Schoemaker ponders the value of his personal blog, shoemoney.com. The person who asked him about this found a value estimate from some website of around $600,000. Jeremy himself places the value at about $300,000.
Lets think about this. He gives some statistics in this article for us to look at. First, he claims the blog makes $10,000/month without actively searching for advertisers. He also believes he could increase that by 50% if more legwork was done to drum up advertisers.
The problem with valuing a site like Jeremy’s is that it is worth a lot more to him, than it is to another person. I would pay about $150,000 for his site provided that he sign some kind of non-compete agreement, and agree to perpetuate the myth that it was indeed him still writing the blog. It would be hard for me to remember to spell as badly as he does, but I think I am competent enough that I could pull off a fake Jeremy site (with his help of course) that I could recoup my investment.
Because of this the site could never be sold. No one will be willing to pay what Jeremy would be willing to sell it for. Jeremy can continue to earn a pile of cash writing a post or two a day with no risk of losing traffic. People believe in him and his abilities. Any purchaser would have to price in the risk of losing traffic because they could potentially be exposed for the fraud.
The lesson here is that you should stay away from these types of sites when looking for acquisitions. Their owners, even if they want to sell, won’t be able to part with the site at any price which is fair to the buyer.
Topics: Website Valuation |
