Million Dollar Blogs

Interesting post from Everton Blair over at Connected Internet in which he highlights some research from Worldwide Success identifying blogs worth $1 million or more. I’ve posted their methodology at the bottom, in case you’re interested, but it’s based on an earnings multiplier of 15 (based on P/E ratio) and publicly disclosed earnings.

Therefore, according to Worldwide Success’ calculations, the following blogs belong in the Millionaire Bloggers Hall of Fame:

• Steve Pavlina of stevepavlina.com

  Estimated Blog Value: $5,475,000

  Estimated Annual Revenues: $365,000

• Al Carlton of coolest-gadgets.com

  Estimated Blog Value: $2,308,000

  Estimated Annual Revenues: $153,921

• John Chow of johnchow.com

  Estimated Blog Value: $2,106,000

  Estimated Annual Revenues: $140,431

• Jane May of careerramblings.com

  Estimated Blog Value: $1,866,000

  Estimated Annual Revenues: $124,465

• Darren Rowse of problogger.net

  Estimated Blog Value: > $1,800,000

  Estimated Annual Revenues: > $120,000 (Darren has not disclosed his exact revenues but has acknowledged publicly that he makes more than $120K per year)

• Jeremy Shoemaker of shoemoney.com

  Estimated Blog Value: $1,800,000

  Estimated Annual Revenues: $120,000

• Tyler Cruz of tylercruz.com

  Estimated Blog Value: $1,397,000

  Estimated Annual Revenues: $93,184

• Yaro Starak of entrepreneurs-journey.com

  Estimated Blog Value: $1,178,000

  Estimated Annual Revenues: $78,594

• Everton Blair of connectedinternet.co.uk

  Estimated Blog Value: $1,155,000

  Estimated Annual Revenues: $77,020

Pretty amazing stuff if you ask me. I constantly marvel at how well people are able to monetize their site. I wonder if they had any clue that their efforts would yield a 6 figure income???

Congrats to all!

Methodology for calculating blogs’ worth:

To calculate the value of a blog, we assumed a price multiple similar to the way stocks are valued. The average price multiple of the S&P 500 stocks (also known as the Price / Earnings or PE ratio) is currently about 15. We will use this same PE ratio to valuate these blogs. You could argue that this value should be higher or lower. Some people might say that a blog should be valued at a higher PE because of its growth potential. Others may argue that it should be lower because a blog is not as liquid as an S&P 500 stock. We feel that for the purposes of this exercise a PE of 15 is a reasonable value.

In order to be valued at $1,000,000 or more, using a PE of 15, a blog must generate a minimum of $66,667 per year, or $5,556 per month. To select the blogs that qualify for the Millionaire Bloggers Hall of Fame we chose blogs that have publicly disclosed their blogging revenues and we took their reported values in good faith. For blogs that report revenues on a monthly basis we took the last reported revenue and annualized it (multiplied by 12). No future growth potential was taken into account. We also assumed that expenses were negligible, so revenues equal earnings. All values were rounded to the nearest thousand.

Tags: Blogs, Million Dollar, Blog Earnings, Online Income

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