This post over at Performaning is getting a lot of attention, and it raises a lot of questions. To quote Peter Brady:
1. Do you as a professional blogger have an exit strategy?
2. Where do you want your blog business to be in say 2 years time?
3. Are you positioning your blogs with an eye to a big payday or for long term organic growth?
4. Who might be likely purchasers of your blog business?
5. Have you considered the potential for a stock market flotation at some point?
Point 5 is of particular interest, because I’m not aware of any blog company or blogger floating, but I might add, I’d love to see the day. But more seriously, are blogs written on the basis that they might be acquired? I’d be surprised for example if Jason Calacanis responded in the affirmative. Most people blog because they love blogging, and in the case of b5media for example, we not only love blogging but we want to help others make a quid out of it as well. Naturally there is always the potential that someone might want to buy you out, but I also dream about winning Lotto as well. I still haven’t won lotto, but I will accept multi-million dollar bids on b5media :-)
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hehe yep I’m sure a few million would go down nicely Duncan! I truly hope one day that is the case for you and others one day. One day being the crucial element of my post which has been neatly ignored. This is what I said:
“One things for certain, there will eventually be consolidation in the blogosphere as there has been in every industry before it. Casting a cursory eye towards that future will do you no harm.”
I should have elaborated on the actual timeline here but I think you can read between the lines that I was peering a way into the future. Please see my post this afternoon on Performancing which goes into more detail.
As far as Mr Calacanis is concerned I certainly can’t answer for him and I am prepared to stand corrected – but did he not have some capital backing? If that is the case then I would be very surprised if those backers expressed no desire at all in knowing when they might be getting their capital back plus interest? This is not to say that business plans should focus on exit strategy, far from it. Sustainable revenue growth and enjoyment as you say should be key, but wouldn’t it be wise to cast an eye in your business model where and when you might cash in, whether that maybe by acquisitive network consolidation or floatation. Even if that maybe years down the road. I have seen lesser companies than b5 Media float on UK AIM exchange! Now there’s a thought for you Duncan. :-)
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Having been working on a project about the social and economic impact of blogs, I am now debating on whether or not I can cite you as a source. Are you credible? (I kid, I kid!)
Should you have anything to add on this subject, please drop by our blog that is following the progress of the blogging project.
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I don’t know if Weblogs Inc had external funding but Jason Calacanis started a couple of magazines during the dot com era and sold one to the Dow Jones Corporation so he more than had the ability to fund his own venture.
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I had forgotten that Mark Cuban is believed to have made a substantial investment in Weblogs Inc.