Another Huge Vote for Investment Bankers

In case you haven’t been reading any blogs lately, bought one-man blog Bankaholic for $15,000,000 this week. Duncan Riley summed up many people’s thoughts about that when he wrote:

You would presume the site was making good money by the sales price, but nothing else about the site stacks up. Traffic isnt brilliant, matched by irregular posting at best. Quantcast shows 156,000 uniques on 263,000 visits, Compete puts the unique number at 300,000. The site has an Alexa ranking of 42,168. Since September 14, there has been only 9 posts to the site, and comments vary from a few through to the highest at 20.

Without knowing all the actual details (well, the revenue mostly), its had to definitely say that this blog was over priced, but the amount paid for it is staggering, and Im surprised others arent saying the same thing. This wasnt a blog network, or mega-blog with a team of writers; instead its a one man blog running a mix of Adsense units and affiliate offers!

How’d they get such a good price? Mark points out just how valuable traffic like Bankaholic’s is, and that’s absolutely got a lot to do with it — as does’s probable desperation to shore up their business in this economy.

There’s another factor at work too, though. I just talked with my bankers and found out that they represented Bankaholic’s owner, too. You can’t overestimate the value of having a great investment bank on your side. They have proven time and time again their ability to turn a good deal into a outstanding deal.


  • Kim

    October 3, 2008
    at 4:51 pm

    Holy cow! Maybe I should have called Emergiblog, “Emergiholic”! LOL!


  • John Wesley

    October 3, 2008
    at 7:55 pm

    As soon as I saw that price I knew it had to be an SEO site. I’m surprised an internet vet like Duncan doesn’t know more about affiliate marketing and the value of search traffic. A few visitors interested in “CD rates” will trump thousands of diggers, stumblers, and avid commenters any day.

    I just hope this doesn’t flood the market with competition!

  • […] someone who knows how to maximize your price. The right representation is the difference between selling a blog for $15M and selling something worth far more for less than $1M (to cite a couple of the very few public […]


  • Sarah

    February 25, 2010
    at 8:30 pm

    Kindly Please Would Some One Explain to me How This Deal Done .. ?!!!
    I mean how John Wu Completed this deal and got his money is it through an agent or Broker Or What ??

    Lets say a company showed interest in buying and offered 100 Million Dollars 🙂

    How this is done from the start to the end . . . Would Some One Enlighten Me Please ???

    Details : Negotiations, How The Money Transferred from The Buyer to The Seller …. ???


  • Shane

    February 26, 2010
    at 11:05 am

    @Sarah: Every situation is different, so I can’t give you any details that would apply to all situations, but Johns had a professional representative who worked to get him the best deal, just as I did in the site they sold for me.

    See “How to Sell a Website for $1M” for more details.


  • Sarah

    February 26, 2010
    at 2:08 pm

    Okey 😉 Nice Diplomatic Answer, Lets make it simple and provide me with just one situation … is this too much to ask .. !!

    Bankaholic Sale definitely inspire the birds on trees so why not researching for a good nich building it from scratch boosting alexa and yes you can sell it from +200 grand 😉 in 10 or even 12 months its not hard especially when we do nothing with our life [me]

    build five you got the full Million.

    I searched a lot for these specific details and no luck, just agents, brokers or sites buying and selling domains like Site Point etc.


  • Shane

    February 26, 2010
    at 2:24 pm

    Most transactions are covered under either a written and/or unwritten Non-disclosure Agreement, so the details we can divulge about deals of this size are few. However, I can give you a general idea of how things usually go:

    1. A website owner decides they want to sell, either because they’re ready to get out or because someone has made them an offer.

    2. If the value of the site looks to be greater than about $1,000,000, the owner can secure the services of a representative (like an investment banker) who will actively try to get the best price for the site.

    3. The representative compiles an exhaustive list of anyone who might have an interest in buying the site.

    4. The representative contacts all potential buyers to gauge interest and answer any questions they have.

    5. At some point along the way, they set a deadline for all offers to be in.

    6. Once all offers are in, they continue to contact the interested buyers to see if they are willing to beat the best offer currently on the table.

    7. Once all buyers have reached their maximum number, the process of closing the deal with the highest bidder begins.

    8. If that process fails, the representative contacts the next buyer in line and tries to close with them until a deal is finally done or all deals fall through.

    Hope this helps.


  • Sarah

    February 26, 2010
    at 2:45 pm

    Thank You So Much Shane 🙂 I think I will start planning Now and if I need to know more I will stop by.

    Appreciate the knowledge in here.