Chocolate and Gold Coins

Wednesday, October 26, 2005

What Is Your Blog Worth?

There is a bit of blog silliness going around about valuing blogs based on Technorati Rank. I read about this first on Om Malik’s blog. You can see an example on the side ofPatrix’s Blog (the George Washington picture) and Technorati blog, (I might be the first to link to this sad blog). Apparently a big group of blogs was bought out for an outrageous price and Tristan Louis determined that at this price each link is worth somewhere around $564.

Now think about that. Did my five seconds of labor above create $564 in wealth to Patrix? Well, I had linked to him before, but what about Om Malik? This post on Desipundit would be worth easily $100,000 to the collective blogosphere. Obviously links cannot, in the margin, be worth anything because they are essentially costless to produce. You could hire people at not much cost to create blogs and link to other blogs and, in effect, “print up” links like counterfeit money all day long.

But it is something that lots of people thought enough about your blog to create a link to it, without any remuneration involved. That is the curious paradox here. The links are valuable because there is no market for them and they are scarce. If you could buy them, then they would be nearly worthless.

But maybe another way to think about it is that a link is valuable if it is in the context of a genuine article. If someone was inspired to write a genuine essay based on your piece, that is gold. But again, it is valuable only because that person had no incentive to do so besides his own admiration of your work.

While the Technorati metric works okay for now as a way of ranking blogs, it could easily be corrupted once people try to price a blog using this metric. Really, the only metric that matter is ad revenue.

But, for a week anyway, I will enjoy the thought that my humble blog is worth $61,500. Now that I have crossed the 100 link threshold, I want say "thank you" to everyone who has linked to my blog at some time:

(It feels nice to print up counterfeit money).


  • Haha...thanks for the counterfeit money !!

    By Anonymous Anonymous, at 8:25 AM  

  • thanks for the $564 ! If only you could send the money through google adsense !

    By Blogger Gautam Ghosh, at 8:48 AM  

  • Lovely post. And thanks for the money. :)

    When I first saw this (on Patrix's blog), I found it interesting, and I did find out the 'worth' of my blog, but it felt a bit too silly to actually go ahead and post about it. Or maybe I was a bit embarrassed by what my blog turned out to be worth.

    By Blogger Aditya Bidikar, at 10:12 AM  

  • Thanks for the $9000 Mr.Higgins :) And thank you for linking me too. I must say I enjoy reading your blog!

    By Anonymous Anonymous, at 1:26 PM  

  • Thanks Michael for linking. I find it a very interesting idea, and have indulged in it on my left sidebar. Lets see how it goes.

    By Anonymous Anonymous, at 2:49 PM  

  • I am finally rich! Thanks =)

    Never thought of bogus links as counterfeit money..interesting concept!

    By Anonymous Anonymous, at 5:08 PM  

  • OK, how about just hard cash instead of link money? :-)

    Do you keep track of every blog that has linked to you? Just curious...

    Have a nice day.

    By Anonymous Anonymous, at 1:24 AM  

  • Am returning your $564...

    By Anonymous Anonymous, at 1:56 AM  

  • Hello,

    I sent a trackback to this post but did not work, so here is my post inspired by yours:
    Blog for sale.

    Enjoy the money... Pablo.

    By Anonymous Anonymous, at 3:20 AM  

  • Hi Yadu Gautam Aditya Truman arZan Sue Varun Patrix and Pablo

    You are all welcome and thanks again.

    Patrix: Desipundit will make you a "blog millionaire" soon I think!

    Btw, apparently you aren't the only one who likes Ash a lot. I put her in that list twice by accident. Must be something subconscious there.

    Varun: thanks and yes I do try to keep track of everyone who has ever linked to my blog. I may give it up soon because it is getting out of control. It was easy when the list was only 10.

    By Blogger Michael Higgins, at 5:06 AM  

  • Michael, thanks for the pointer. I just checked and found I am worth about 72000 $. So if you need a loan anytime, :)


    By Blogger Ravages/CC, at 11:37 PM  

  • Thanks for the $564! I have to plan how I should spend it.

    Vikram: you probably made a mistake. It happened to me too, and I was heartbroken ;-( until a friend told me that I was actually worth some 37K that turned me to ;-) . So, I would urge you to try again.

    Well this discussion thread was fun, too. Thanks Michael, for starting it off with an interesting post on a totally worthless topic!

    By Blogger Abi, at 10:51 AM  

  • Hey great post....

    By Blogger Rajesh, at 2:47 AM  

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