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Cashing Out your Blog

Selling a blog is usually not what a blogger wanted to do when he first started blogging. Usually the plan is to make the blog as big as possible and have an authority site that’s recognized by everyone. There are others who like to start a site, monetize it and sell it quickly for profit and start a new site right away. This post is about the 2nd group. Both options can be very profitable. Just a few weeks ago, Netbusinessblog.com was sold for $13,000 but what’s more amazing is that it was started just in January 2007.

Setting the right price
The biggest challenge when selling a blog is setting the right price. How much is your blog worth? There are many tools out there to measure a blog’s worth. Most of them will either give a significant value for the PageRank, the Alexa rank and the Technorati Rank. All these can be very misleading, and if your blog has a poor ranking the buyer might convince you to sell it to his price. Other buyers will use another valuation technique by buying a blog for around 10 times the monthly income. If you’re making $100 a month with Adsense, they’ll give you $1000. This technique is most widely used, but you must be very careful.

What you have to do is not sell for what the blog is making, but for what it can make. Most of them are under optimized when it comes to a monetized blogs, and buyers will look for these great opportunities. It’s not because a blog is making $100 a month that it can not make $1000 a month. Take a look at all the options available to monetize a blog and evaluate by yourself how much it can make when it’s maximized.

When you look how much you can make with your blog, make sure you include donations, Adsense, contextual advertising, affiliates and more. The key is not to price looking at the present, but to price your blog according to its potential.

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