A bargain at $900,000

I have no idea what this means, but now a bunch of kind readers have sent me a link to the following website which purports to tell you what your blog is worth.

The answer for the Freakonomics Blog, at least when I looked, was $996,413.10. Hmmm. That seems just a bit high. I talked to Dubner and we agreed that we would be willing to sell it for just $900,000. If you are interested, just let us know. No real estate agents necessary for this transaction, it is a For Sale by Owner.

Just for the record, my quick calculation of the revenue stream we could get from advertising on the site is about $20,000 per year. Which makes it look pretty expensive at $900,000. Not to mention that when you buy the blog, you are essentially buying our human capital, and if we didn’t own it we would sure not work very hard on it!

Maybe instead, I’ll focus my revenue generation efforts on another opportunity mentioned on that same website that values our blog at about $1 million. The author of that blog is willing to pay $25 to the person who comes up with a great name for his baby due in a few weeks. We’ve got lots of great Freakonomics-approved baby names to give away.


econopete

Perhaps the value of the blog is correlated to the value of the individuals? Thus, if you were no longer attached to it, it would be without worth.

I like the name Peter. That ranked very high, as I recall (15.0 years).

Paul Ma

Google is worth 99 Million. So Freakonomics is worth 1% of Google. That's pretty good.

3612

Yikes. I'm picturing the Freakonomics blog buried under a sea of pop-up ads. What makes the book (and this site) great is the humor and accesibility that draws in economists and non-economists alike. There might be other places to go for your econohumor feed needs, but right about here feels like the least cluttered easiest to get to.// If you live in a big city you might try looking up Henry Miller's "Money and How it Gets That Way." It's funny but not too easy to get at. Sitting in Paris one fine day Miller("Tropic of Cancer") and friends decided that they could write a book on international finance and did. Many rare book libraries have a copy.

rschnmn

There's a page on that site that explains the methodology.

http://www.business-opportunities.biz/projects/how-much-is-your-blog-worth/

Basically, he worked off of research into the value of links to Weblogs as calculated by the size of the Weblogs Deal with AOL divided by the number of links. His program applies that per link value to blogs using Technorati's readily available API.

Will you be displaying the cool looking graphic his site also generates? Doesn't really go with your color scheme, but it is a really big number...

semivoid

Hmm, at least Google is valued a bit more reasonably than it's stock market capitalization...even if it understates its worth by a bit. Then again, google's main assets are it's human capital...which would suggest that either it plays no factor in the calculator or either the freakonomics 3 are overvalued or the google's thousands are overvalued.

I would like to see the algorithm behind the calculation.

semivoid

Hmm, missed entry number 4. Thanks for the info rschmn.

John

I think I've spotted some real bargains here...

Your blog, ford.com, is worth $0.00
Your blog, abc.com, is worth $241,623
Your blog, disney.com, is worth $1,043,269
Your blog, aol.com, is worth $882,940

Would anyone be willing to put up a little cash with me, and we can start some businesses on the side? I'll be in contact with each site mentioned above, providing them with these valuations, and further negotiations can proceed from there. Ford.com will be my first stop, where I intend to offer $100.00 (or is that too much?).

Bruce Hayden

The google situation is interesting. $99 million is obviously way low, but their market cap is too high. Microsoft would pay $100 million in a heartbeat for Google, and throw in a $900 million finders fee. Why? Besides the inherant value of Google, the company stands between Microsoft and making serious inroads in the search engine market.

So where does the value of Google come from? I think to some extent, from the inertia of a good brand. Just like Crest toothpaste, a lot of people just automatically use Google as their search engine of choice. Changing to Google as such is one of the first things I do when installing a browser. It may not be better any more than some of the others, but it works very well for me, and I don't have the time or energy to find a better one, esp. since next month, Google may have caught up. (See Tipping Points for some discussion of this).

The (IMHO) overly high market cap though may be a function of a couple of phenomena. One, the lottery phenomenum (see my comments on voting). And secondly, markets seem to have better tools for betting on long term stock appreciation than depreciation. What we really need is better availability to sell short on a several year time frame.

Read more...

Bruce Hayden

I think that one factor that may be bringing the alleged value of the web/blog site up is snob appeal. Freakonomics is a very controversial book that has gotten a lot of notoriety of late, written by a couple of very bright PhDs. So, you put a link to this site on your blogroll. It makes you look smart and sophisticated. Never mind that you don't ever come here - and indeed, I noted that there were a couple sites on my blogroll that I hadn't visited in months. Nevertheless, I too want to look smart and sophisticated, so I too will add the site to my blogroll in the very near future.

Bruce Hayden

I can now feel smart and sophisticated. I just added Freakonomics to my blogroll. That should be worth at least another $.02 in value to the site. At this rate, the authors may be able to retire before their next book.

econopete

Perhaps the value of the blog is correlated to the value of the individuals? Thus, if you were no longer attached to it, it would be without worth.

I like the name Peter. That ranked very high, as I recall (15.0 years).

Paul Ma

Google is worth 99 Million. So Freakonomics is worth 1% of Google. That's pretty good.

3612

Yikes. I'm picturing the Freakonomics blog buried under a sea of pop-up ads. What makes the book (and this site) great is the humor and accesibility that draws in economists and non-economists alike. There might be other places to go for your econohumor feed needs, but right about here feels like the least cluttered easiest to get to.// If you live in a big city you might try looking up Henry Miller's "Money and How it Gets That Way." It's funny but not too easy to get at. Sitting in Paris one fine day Miller("Tropic of Cancer") and friends decided that they could write a book on international finance and did. Many rare book libraries have a copy.

rschnmn

There's a page on that site that explains the methodology.

http://www.business-opportunities.biz/projects/how-much-is-your-blog-worth/

Basically, he worked off of research into the value of links to Weblogs as calculated by the size of the Weblogs Deal with AOL divided by the number of links. His program applies that per link value to blogs using Technorati's readily available API.

Will you be displaying the cool looking graphic his site also generates? Doesn't really go with your color scheme, but it is a really big number...

semivoid

Hmm, at least Google is valued a bit more reasonably than it's stock market capitalization...even if it understates its worth by a bit. Then again, google's main assets are it's human capital...which would suggest that either it plays no factor in the calculator or either the freakonomics 3 are overvalued or the google's thousands are overvalued.

I would like to see the algorithm behind the calculation.

semivoid

Hmm, missed entry number 4. Thanks for the info rschmn.

John

I think I've spotted some real bargains here...

Your blog, ford.com, is worth $0.00
Your blog, abc.com, is worth $241,623
Your blog, disney.com, is worth $1,043,269
Your blog, aol.com, is worth $882,940

Would anyone be willing to put up a little cash with me, and we can start some businesses on the side? I'll be in contact with each site mentioned above, providing them with these valuations, and further negotiations can proceed from there. Ford.com will be my first stop, where I intend to offer $100.00 (or is that too much?).

Bruce Hayden

The google situation is interesting. $99 million is obviously way low, but their market cap is too high. Microsoft would pay $100 million in a heartbeat for Google, and throw in a $900 million finders fee. Why? Besides the inherant value of Google, the company stands between Microsoft and making serious inroads in the search engine market.

So where does the value of Google come from? I think to some extent, from the inertia of a good brand. Just like Crest toothpaste, a lot of people just automatically use Google as their search engine of choice. Changing to Google as such is one of the first things I do when installing a browser. It may not be better any more than some of the others, but it works very well for me, and I don't have the time or energy to find a better one, esp. since next month, Google may have caught up. (See Tipping Points for some discussion of this).

The (IMHO) overly high market cap though may be a function of a couple of phenomena. One, the lottery phenomenum (see my comments on voting). And secondly, markets seem to have better tools for betting on long term stock appreciation than depreciation. What we really need is better availability to sell short on a several year time frame.

Read more...

Bruce Hayden

I think that one factor that may be bringing the alleged value of the web/blog site up is snob appeal. Freakonomics is a very controversial book that has gotten a lot of notoriety of late, written by a couple of very bright PhDs. So, you put a link to this site on your blogroll. It makes you look smart and sophisticated. Never mind that you don't ever come here - and indeed, I noted that there were a couple sites on my blogroll that I hadn't visited in months. Nevertheless, I too want to look smart and sophisticated, so I too will add the site to my blogroll in the very near future.

Bruce Hayden

I can now feel smart and sophisticated. I just added Freakonomics to my blogroll. That should be worth at least another $.02 in value to the site. At this rate, the authors may be able to retire before their next book.