With the recent big ticket ($25 million) sale of Weblogs, Inc to AOL the monetary potential of a blog network was highlighted. Anything with the word “blog” in it has become hot property. Frankly though, blogs are only just going mainstream and it’s early enough days that opportunities abound in the blogosphere.
Looking at blog networks as a potential business opportunity is mouth watering for a web entrepreneur. The typical valuation measurements are the same as for standard websites, traffic and profits (sometimes revenue for newer businesses and future potential will always play a part in evaluation). Weblogs, Inc pulled $25 million because it had both significant traffic and significant revenues (they haven’t disclosed profits). A budding entrepreneur looking to cash in on blogs should look to the same metrics – traffic and profits – and at the moment, traffic comes from good content and profits usually comes from advertising.
We agree! And what’s why we launched BlogMedia!