How Peer-To-Peer Pays

Inbound links are commonly used to rank blogs by services like Technorati. The more inbound links a blog has the more status it enjoys in this ranking system. Clearly, it’s but one key factor, but this simple model has become a leading indicator for the bloatosphere at this early juncture.
One blogger, Tristan Louis, compiled Technorati’s numbers for each individual Weblogs, Inc. blog. He determined that one incoming link to a Weblogs. Inc blog is worth betweeen $564 and $903 depending on the exact amount of the AOL/Weblogs, Inc deal. Reports have the deal ranging from $25 million to $35 million.
AdJab, a Weblogs, Inc. blog on our blogroll, has 593 inbound links, or 1.34% of the network’s overall count. This creates a blog valuation of $334,831.51 on the low end or $535,730.42 on the high end of the deal.
Tristan further considers the data:

Should we now assume that traditional media companies are willing to pay between $500 and $1000 per site that links into a blog?
Not quite. The incremental value is in the size of the network and the underlying tools. Jason and Brian have been working on developing a blog authoring technology, called BlogSmith, that sits at the core of their network and one has to believe that AOL saw some value in the software too. However, one can easily say that blog valuations are going to be easier to make after this deal since it provides the first yardstick in that space.

AdPulp has 569 inbound links according to Technorati.

About David Burn

I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. Today—after working for seven agencies in five states—I am head of brand strategy and creative at Bonehook in Portland, Oregon.