Blogs as Real Estate: On Receiving Offers for FWJ
October 7, 2009 by Deb
Filed under Monetizing Blogs
I always liken blogs to real estate. There are several similarities. For example if you choose a good domain name, your location, you can sell your property for a good price. Moreover, if you have curb appeal, the right kind of traffic and valuable content and a steady revenue base, you can sell for a good price.
I’ve entertained several offers to sell over the past couple of years, but turned them all down. Usually those offers weren’t enough money to warrant serious consideration. Not when you consider I earn a steady income, have over 6500 subscribers and thousands of visitors each day. Not when you consider how many advertisers seek me out on a regular basis. Not when you consider how many new writers consider FWJ to be the place to go for advice for getting started.
Yesterday the CEO of a very recognizable brand asked about buying FWJ. After I picked myself up off the floor, I experienced a flood of emotion:
- Validation: A major name in our business likes what I’ve done here enough to not only notice FWJ but to own it.
- Confusion: Why do they want to buy MY blog? There are thousands of blogs about writing and freelancing? Why does mine have value – and how much is it worth to them? Why FWJ?
- Greed: It would have to be a really (and I mean REALLY) good offer to sell FWJ.
- Sadness: What would I do if I didn’t have FWJ? This is my life and my livelihood. It’s my biggest source of income and my favorite thing to do each day. What will I do every day if I can’t blog for you?
- Pride: See validation above. Plus, to have this company want to own my “baby” is truly an honor.
Now, as I write this I know I won’t be idle. I have several other properties, one set to launch very soon. I enjoy building things from scratch. I can flip blogs like some people flip property. However, it’s FWJ. Not just some little blog, but my pride and joy. Something I put my heart and my life into. How can you put a price on passion?
I’m torn and I didn’t sleep well last night. We’re talking about FWJ. The little writing job blog I built into a network in four and a half years. It’s like selling a beloved family home or marrying off a child. FWJ is me, it’s my brand.
Think about your blog and everything you put into it. Would you sell? At what price?
I have an idea what you are feeling. Been through the process a few times. One of the times I still have mixed feelings over. You have to really know what you are getting into and get a good valuation, that much is obvious, but what I didn’t realize until too late is the new owner has to be an excellent match too.
Good luck!
Thanks, Chris. I thought about Performancing yesterday after receiving this offer. I wonder -if I do sell FWJ, will I be able to watch someone else run it? What if I don’t like the direction it’s headed? If I don’t sell, will I be kicking myself for the rest of my life.
Lots to think about, thanks for weighing in.
There are a lot of things to consider here, that’s for sure. Since FWJ is so much a part of you and you are emotionally invested in it, selling would be very difficult, no matter how much money was on the table. No matter who took it over and how competent they were, the bottom line is that they wouldn’t be you, and that is something that needs to be factored in.
That’s very true, Jodee. However, I also wonder how many people visit FWJ for me or to get their daily leads? Many of the visitors who come here for leads blog hop to find all the jobs. So maybe that part won’t make a difference? I don’t know. I hope I have something to do with it all, but I’m sure more people care about the jobs than the blogger.
I know exactly how you feel, Deb. My husband and I started a sports forum together soon after we got married. Over the years, it’s grown to have millions of page views a month. A few years back, offers started coming in. I would laugh at first, but then one day there was a six figure offer. The site is my baby. I feel like I ‘grew it up’ from scratch. But dang, money like that…I had to consider. In the end, we passed on the offer but it was tough. You just have to weigh your options and figure out what’s right for you. No one would hold it against if you sold FWJ. And even if you don’t, then those offers will continue to be a source of pride for you. It’s a real weird (but good) feeling when someone wants to buy something that you have worked so hard to create and build.
-Kori
Not necessarily true that people come more for the jobs than the bloggers. I’ve never applied for a single job you’ve posted, but I read almost every post across your network.
Good luck making the tough decision about selling.
Hell, who’d buy it? (mine, that is
)
Selling any business that you’ve built from scratch is a bittersweet experience. The question isn’t whether or not you should, but whether you can live with yourself if you do – or don’t – sell. There is never an easy answer.
Depends on the offer.
I put family above everything else. Period. What I do for a living, regardless of if I’m providing a service to others, only has any value as long as I’m putting food on the table for my family. Now, I understand I’m not everyone, but if an offer came through, and it was enough for me to retire off of and provide my family with education/food/home for the rest of their foreseeable futures…why not?
Now, obviously we are talking a 7 figure or greater sum here, and even that would have to be significantly over 1 million in order to make me consider selling a business. For example, my mother-in-law received an offer of 15.5 million Euro on the family business here back in 2007, and she turned it down. I wouldn’t have. Then again, the business is now worth over 20 million Euro on the open market, even with the current global climate, so she was probably justified in her decision to not sell, but the way I looked at it then (and still do) was that she could have sold the company, all the family members would have kept their jobs + received salaries worth 60k a year for the length of time they wanted to remain with the company, and they would have had a 15.5 million dollar pay-off….which is 15.5 million Euro to invest elsewhere. Instead, they have continued to expand their business and now have over 15 stores within Bulgaria, plus several gyms, a large number of properties and lots of land around town, and are starting to diversify into growing crops as well.
So…depends on what you want to do. My old man sold his first construction company for a seven figure sum when he was 33 years old and retired. Granted, he came out of retirement a few years later because he was bored, and built up another company, but it all depends on the person. I’m not one of those people who gets attached to businesses or the people who are my clients. I’m all for customer loyalty, but at the end of the day the paycheck (to me) is worth more than anything else, because I really only care about providing for my family, not everyone else.
I may not always agree with the things that are said here, and Lord knows I’ve not been afraid to publicly voice my disagreements with you, Deb, but I’ve always told you in same breath that I do support your service to the writers, even if I don’t always agree with your message. At the end of the day, I would have to say that if they are offering you a large enough sum, you should take it and run. It’s not going to hurt my feelings any. Everyone has a price tag attached…it’s just a matter of finding out what the price tag really is and determining if it’s enough to continue providing for your family in the same fashion and/or better than.
I haven’t been to a casino in years, but I like this tidbit of wisdom once passed along to me:
After a win, keep the original money and play only with the winnings.
For your situation, that parlays into whether this is the original site that continues to make you profitable and furthers your career in the business.
If so, keep this original site and play real estate with the other properties.
Another thing to consider, besides those points already made, is competition. If you sell, will there be clauses that prevent you from starting another similar blog in future?
I’m one of your readers who comes primarily for the job postings, but I stay and read the rest of the material. But the reason I take the time to come here almost daily, as opposed to other options, is because I trust you and your sensibilities on all things freelance writing. That is, the reason FWJ is such a great site has largely to do with you and the others who have built that site.
Thanks for your kind words. Though I’m not going into any details, I think it’s safe to tell you FWJ isn’t going anywhere so you’re stuck with me.
It was an honor to have been considered though.
I am glad you have decided not to sell. The many times I have seen blogs/sites I follow change hands, the blog/site becomes a different product. It usually changes course a bit, and deviates from what attracted me to it in the first place. I can’t tell you the number of blogs/sites I have unsubscribed from due to a flip which resulted in less quality content. Sometimes it works out, but I believe the odds are in favor of a flip becoming a flop.
Deb, I am sure the decision was/is difficult for you. I come to FWJ for the jobs, sure, but, as Christi S. points out – I trust you. It’s personal. Forming virtual trust in a person and site, is not something I ever thought I would do. Yet, when I found FWJ that very thing happened. I rely on your integrity and experience, and value your opinion. I have recommended your site to many and will continue to do so.
Selling a one’s own business is a tough decision. Some people do it all the time — they build a business, sell it, build another one, sell it, etc.
I think all of the valid points havbe been made by others — you need to look at the offer, the time value of money (expect inflation to roar its ugly head soon), etc. Also consider if you could get more in the future…are blogs priced at a premium now or near the bottom (I have no idea). Just like your real estate analogy, now is the time to be a buyer, not a seller in that market.
Another real estate analogy: You could look at this as a rental property, with ongoing rents. But if you no longer want to be a landlord, you might want to sell — if the price is right.
Deb, I’ve built and sold more than ten sites over the past year including my very first message board community which I launched in 2002. I sold that site in 2007. Do I have regrets? Yes, not for the sale but because the buyers haven’t maintained it all that well.
It was once an authority for its niche, but no more. All the work for naught.
Don’t underestimate how important you are to your bloggers. When I think of your Freelance Writing Jobs blog, I think of YOU. There are many similar blogs out there ON THE SURFACE (e.g. posting writing job info) but only -one- with your unique personality and integrity. Don’t undervalue that.
Think hard before you agree to stay with the blog after you sell it, if that’s a potential part of the deal. Think how you’ll feel if the new owner decides to change the blog’s direction, or do something that you -hate-.
Even if the potential buyer seems like the right match, be prepared for the possibility that the buyer will change, or sell to someone else.
If you do decide to sell, hire a good lawyer. Put -everything- in the contract, even if the buyer seems genuinely sincere, cooperative and trustworthy.
Good luck! I’ll be crossing my fingers for you,
Debbie
FWJ’s appeal (and likely its value to bidders) is its community. It is like the growth of planets. At first, a planet is just a rock floating in space, then the internal temperature grows to where it is creating its own heat and environment. In turn, that provides the perfect atmosphere for life. FWJ has reached that stage, where many readers come for the discussions rather than the job ledes.
As for the question of selling or not, look at it like real estate. If you are only into ‘flipping’ houses or you are a real estate agent, your attachment is less than if you built the house or lived in the house, creating lasting memories. Your house may be cramped, drafty and have a million quirks, but at some point, the memories made there will make it tough to sell and start anew.
Deb,
That’s great news. I know a lot of people who sell their businesses have it in their contract that they stay on as a manager for a year or two, retaining creative control. I know you have mixed feelings about selling this blog, but this could be a great chance for this community to grow. Selling FWJ is not going to be the end of this community, but could easily be a new, wonderful chapter.
Heath
Deb it just wouldn’t be FWY without YOU. You are the heart and blood of this site. Without you where would the passion be? Helpful insights and job postings are great, but people like talking to, blogging with and interacting with PEOPLE they like. This isn’t just FWJ…This is Deb Ng
As a blogger AND a person who works for one of those companies who buys websites from people like Deb, I can see both sides of the coin. I would feel ambivalent about selling my personal site, because it’s my baby. I created it and took it from nothing to something. On the flip side, I would consider selling it if I could remain hands on with it. You can dictate the terms in the contract that will allow you to retain creative control and let the buyer handle the business operational part of it. Just don’t sign all your rights away. Negotiate in your favor.
There are companies who buy sites and let the owner keep running it, and do a rev share. I would go that route if I decided to do it.
I am not sure I could do that with my own sites. One of the reasons I enjoy running my own blogs/sites is that I don’t have anyone but myself and my readers to answer to.
Maybe I’ll have this problem one day. At the moment I’m imagining that I’d sell up but I bet when you’re years down the track you don’t want to give up on your investment that quickly.
But if you did you could always build up another equally strong brand with all the knowledge and contacts you now have?