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Blogger Hits Jackpot with Sweet Deal from Bankrate

Bankaholic Sold for $15 Million

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Reports have surfaced that Bankaholic.com, a WordPress blog run by Johns Wu (alone) is selling for $15 million to BankRate. That’s quite a deal for Wu, I’d say. According to paidContent.org, Wu gets $12.4 million up front, with another $2.5 million possible earnout over the next 12 months.

Bankaholic

Darren Rowse who knows a thing or two about blogging success says, "If this price is true it’s a fairly decent sale for Mr Wu (understatement of the year) – the blog has an Alexa ranking of 42,168 and averages less than 20 comments per post. The blog does seem to rank very well for a lot of bank terms and I’m sure drives targeted traffic and would convert well with affiliate products – but this is still a fairly inspiring sale!"

"Inspiring" is an understatement itself. If ever there has been motivation to make money blogging, this should be it. This is even more inspiring than the Wine Library TV guy getting on Conan and Ellen. His story was impressive. He did turn it into a $45 million business, but it was already a $4 million to begin with.

As far as I can tell, Wu just started a blog, and here he is sometime later selling it for $15 million. I think most bloggers would find that very impressive. "I was looking at this deal and was thinking if this isn’t the highest price tag paid for a single WordPress blog than it must be the most profitable WP blog ever sold!" exclaims blogger Patrick Gavin. "A deal estimated at $15M, seemingly all organic search traffic (so no cost for the traffic, the site is highly ranked for many top banking terms, ie ‘CD Rates’), and one employee! Well done John[s] Wu."

BankRate confirms that natural search ranking was indeed a factor. "We have been working with Bankaholic in a co-brand relationship since July and have seen first-hand the volume and quality of its traffic," stated Thomas R. Evans, President and CEO of Bankrate. "Bankaholic is ranked high in natural search for both deposit and credit card keywords. We believe their organic traffic will increase our deposit and credit card revenue, and with a high composition of free traffic, will help to improve margins,"

John Chow talked to Wu and confirmed the $15 million price. I have contacted both Wu and BankRate with some questions, so hopefully I will get some more info on the deal from one or both of them. If so, you’ll be the first to know. According to a press release, Wu will stay attached to the blog during the transition period, and for an undisclosed amount of time following that.

Blogger Hits Jackpot with Sweet Deal from Bankrate
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  • http://www.xivos.com Tom

    Can’t say I would want to be footing the bill for that one, but Mr Wu won’t be complaining. The guy is either very lucky or a very, very, smart negotiator.

  • http://www.kishoresoft.com Sai Bharadwaj

    Even am doing different things on web. Started my own web development company too. When will I hit the jackpot????? :-(

     

    Am happy for him though…waiting for my time :D

     

    Regards,

    Sai Bharadwaj

    CEO & Managing Director

    KishoreSoft.com

     

    • http://www.letterwhiz.com Jasen Maminski

      It’s good to see a blogger making it big!

      Cheers,

      -J

      —-

      Jasen Maminski
      Principal
      Letterwhiz.com

  • http://bankaholic.blogspot.com/ MikePC

    Piggybacking on the name is an innovative ploy as well.

    Viral marketing at its best?
    http://bankaholic.blogspot.com/

  • http://www.simplyclicks.com Simply Clicks

    I may be spoiling the party but it does seem rather odd that someone values a business on the basis of organic traffic. A cursory investigation of some of the links pointing at Bankaholic shows some fairly crude activity.

  • http://www.makemoneyonlinemadeeasy.com Boricua

    The amount of money that blog most be making from affiliate comissions alone could be worth the big investment over a few years. I mean, credit cards, insurance and bank rates all together with an Alexa ranking of 41,810.

    $15,000,000 could surely seem like a lot, but the the thousands of unique visitors that websites receives per month could mean a ROI in a couple of years. That site should easily receive over 30,000 unique visitors per month. Wonder if the insurance section alone will cover the ROI in two years.

    Lol…thanks for the heads up. Surely hard work on his behalf. Luck? On a 41,810 ranked website with the amount of quality and social interaction. Nah, he forced his own luck. Great job!

    Boricua

  • http://www.cardz.com Phil

    Hey, I’m still doing research about this, I just can’t believe they would pay such an obscene amount of money for a blog site. The only conclusion I can think of is that bankrate just realized John Wu simply got lucky at the right time. If bankrate wanted to build the same blog they could. Hell, with 15 mil they could have Warren Buffet write blogs and reach 300K users in 10 days. They definitely have the expertise to do such a thing. So why they paid 15 mil? If bankrate acknowledged John Wu simply got lucky with his blog they can’t replicate it. You can’t follow someone’s footsteps that won the lottery and buy your lottery tickets at the same gas station in hopes to win. Pure and simple you can’t replicate luck.

  • http://www.cardz.com Phil

    Hey, I’m still doing research about this, I just can’t believe they would pay such an obscene amount of money for a blog site. The only conclusion I can think of is that bankrate just realized John Wu simply got lucky at the right time. If bankrate wanted to build the same blog they could. Hell, with 15 mil they could have Warren Buffet write blogs and reach 300K users in 10 days. They definitely have the expertise to do such a thing. So why they paid 15 mil? If bankrate acknowledged John Wu simply got lucky with his blog they can’t replicate it. You can’t follow someone’s footsteps that won the lottery and buy your lottery tickets at the same gas station in hopes to win. Pure and simple you can’t replicate luck.

  • http://makemoneyonline.com.au/ Phillip from Make Money

    That is certainly a lot of money for a blog, simply amazing.

  • http://www.the-dude.co.uk The Dude

    What more can i say?? Good on him! I’ll be there one day!

  • http://frugalgrad.com frugalgrad

    I have just heard a wordpress blogger who signed a 300,000$ deal and my jaw already dropped down to the ground. Now, for a blog that started in 2007 to rake in 15 million dollars…I hope the earth is deep enough for my jaw to drop. Really amazing! Sometime fortune just hit you right in the face huh?

  • http://www.famousandrich.com/ Owain

    This is such an inspiring story. I’m sure people will be talking about this for months thus bringing in a lot more traffic to that blog. The move has certainly captured the imagination of a lot of people and given BankRate some really good exposure.

  • http://DebtConsolidationGains.com Debt Consolidation

    This is very inspiring, but I am darn sure it’s not just luck – it’s hard work. Take a look at the google search results for top bank terms and you will find the site ranking tops – so Johns Wu really did something right that Bankrate just can’t replicate easily.

  • http://www.free-bets.ro/ pariuri

    that`s a lot of money….

  • http://www.bestcreditcardratings.co.uk williamH

    I was not surprise to hear that Bankaholic was sold for $15 million. This guy put a lot of time and work to his website and at the end, he reap his harvest.