Digg is apparently for sale at a price tag of $300 million, around $200 per user given that Digg passed the 1 million user mark in March 2007.
Some people are trying to figure out the numbers and work out a value based on revenue but that model is totally impossible. Digg is in a unique situation because it’s revenue is being severely limited by the fact none of it’s users click on the PPC ads shown on the site. In fact, most people don’t even see them thanks to ad blocking software.
The value of $300 million has to be based on future earnings once Digg can become a mainstream site, there is no way that Digg is making enough revenue from advertising to support that kind of valuation.
Traffic from search engines is likely to bring much more revenue from CPC ads than registered users.
Well I hope they get the asking price, i have around 1,500 visitors a day
to my site http://www,easyshopdirect.co.uk so I need to do some more SEO
before trying to sell it for $10,000,000