The Web World Metrics

The Weblogs/AOL deal values blogs at $600 to $900 per inbound link. While I do not find any great repeatble pattern for valuation that can be culled out from here, I agree with Fred Wilson that these numbers may be some sort of guidepost to monitor the investment thesis and make sure the opportunity is playing out the way investors think it will. Web based businesses are centered on content and related data and the management team and investors need to monitor that data closely to keep a handle on the business and its progress. Fred Wilson writes that his form would like to make initial investment sometime between the formation of a business and the first dollar of revenue coming in the door.Even after revenue starts rolling in, alternative metrics help in monitoring the growth and health of a business – essentially different metrics for different type of enterprises.
Besides Page views & unique visitors per day, week, month , with RSS, its important to monitor how much consumption happens via that channel. He writes that amongst their investments monitoring measures vary.
- For Indeed, the measure is the number of searches per month.
- For Del.icio.us, the measure is the number of postings per month.
- For Tacoda,the measure is the amount of behavioral data being captured in the TAN network.
The rankings in the blogosphere centered on plain technorati scores or pubsub scores may only matter the least - the web and the blog world is a very different world calling for varied measures of performance.

Category :Web Valuations