18 Comments

Summary:

Business 2.0 covers blogging entrepreneurs in its latest cover story, calling the upstarts “Real businesses, with real revenue streams from real advertisers — not overhyped next big things with pick-a-number valuations based on selling out someday to some overenthusiastic big-media sugar daddy.” Writers Paul Sloan and […]

Business 2.0 covers blogging entrepreneurs in its latest cover story, calling the upstarts “Real businesses, with real revenue streams from real advertisers — not overhyped next big things with pick-a-number valuations based on selling out someday to some overenthusiastic big-media sugar daddy.” Writers Paul Sloan and Paul Kaihla herald the entrance of “mainstream blogdom” (the MSB?). Obviously, since B2.0 is Om’s former employer and he continues to write a column for them, there are a lot of conflicts of interest here, so we’re throwing the rookie into the ring! Yay.

The story keeps its eye on the money, pegging Gawker’s revenue at $3 million this year, Boing Boing and paidContent at more than $1 million per year, with TechCrunch making $60,000 per month (making an additional $50,000 from sponsors at that party last Friday) and Fark “soon” making $600,000 to $800,000 per month. Meanwhile, paidContent, GigaOM, and the Huffington Post have raised venture capital.

Sugar Publishing (which is raising VC money now) gets 12 million page views per month but “doesn’t expect to earn a dime until the end of next year,” though after that it’s purportedly going to make “$15 million in revenue in 2008 and $40 million in 2009.” The big exit so far is Jason Calacanis’ $25 million. For a note of skepticism, B2.0 notes Organic’s estimate of total blog ad spending at just $40 million, with bloggers selling most of their ads at discount rates.

New publishing technologies are thrusting media empire-building into warp speed. We all know how dude-with-a-blog can quickly turn to dude-with-a-brand, but it’s not clear how dude-as-a-company will work. Don’t blink!

  1. Interesting article, but like the much-mocked Business Week Digg story, a lot of numbers hype with no real figures. Take this passage on Fark:

    Curtis won’t disclose his current revenue but insists that he can soon log monthly ad sales of $600,000 to $800,000.

    he “insists” he “can soon” “log monthly ad sales”. It implies that wold be $600k per month (not logged in the month and sold over 3,6,or 12 mos). Earlier it says he only employs two people, and is based in Kentucky so let’s say if each was making $60k per year, plus average hosting costs for 40m page views, he’s probably looking at $20k per month (on the high side!) in costs.

    But then, the next sentence is:

    Battelle expects Fark to become the first indie blog to earn a million dollars a year in profit.

    With roughly $240k in expenses, this would mean about $1.2m in yearly ad revenue. Sounds a lot more realistic then $600k per month!

    Unlike the BusinessWeek article, some realistic numbers are in there, you just have to tease them out a bit.

    Share
  2. TC makes $60k a month? That’s almost $1 per reader per month…

    Share
  3. Agreed, that BusinessWeek article could have given more numbers for the other sites mentioned, but I think the writers did a decent job of outlining the figures for Digg, the feature subject.

    I find it increasingly amazing that blogs are grabbing so much attention lately. Weren’t they the first “social media” platforms years ago? I mean, I remember making a blog in an Internet class as an assignment in college years ago. Now all of a sudden their fame has come back with a vengence, above other venues of social media.

    Don’t get me wrong, I’m a huge fan of blogs, but it seems like it’s their second coming out party.

    Share
  4. surprising Paidcontent is doing better than tech-crunch – its a great blog network but i wasn’t aware it was selling that much advertising.

    way to go Rafat

    Share
  5. Congratulations on what must be the first Naughty By Nature/OPP reference on GigaOm!

    Oh, and it is interesting to see the natural progression of media empires into social media. It will be interesting to see who stays independent, who gets funding beyond the initial group, and who ends up acquiring different properties.

    Share
  6. James
    We’ve been around for more than four year…techcrunch is a year old.
    also, paidcontent.org is the one site…our mobile content-related site MocoNews.net is another one which covers mobile content, and is doing very well in terms of growth.
    rafat

    Share
  7. nice headline liz… but sorry to say niall beat you to the naughty by nature riff a few months back:
    http://www.niallkennedy.com/blog/archives/2006/06/you-down-with-app.html

    that said, i’m all for more HWA :)
    (that’s Headlinz Wit Attitude)

    • run dmc
    Share
  8. I wouldn’t tell the interviewer any exact numbers so they extrapolated based on the other numbers people had given. Paul found it hard to believe Fark was making less than the guy saying he was making $60k a month, so the estimate started from there. Heck of a nice guy though.

    I think it’ll be quite awhile before we’re all rolling in piles of cash, but it’s nice to get the publicity

    Share
  9. Oh and that per-month revenue projection is basically Fark selling 100% of inventory at $8-$10 CPMs at its current traffic level. That’s where the estimate comes from. I’m not holding my breath

    Share
  10. Diggity Fresh Tuesday, August 22, 2006

    My cat’s breath smells like cat food.

    Share

Comments have been disabled for this post