Need someone to lead product or development at your software company? I lead product and engineering teams and I'm looking for my next opportunity. Check out my resume and get in touch.

Manipulating the (blog) market

Freshness Warning
This blog post is over 17 years old. It's possible that the information you read below isn't current and the links no longer work.

I’m wondering how much influence a single blog can have on the Blogshares price of a blog. For instance, I am now the majority shareholder in a blog called the Spastic Yak. Yay for me. On a related note, my blog has an outgoing link value of nearly $900. So what happens when I link to said Spastic Yak? Will the share price shoot up and make me a rich man?

Protect and Gamble
April 17, 2003 7:46 PM

Not much, instead of being worth $0.49 your shares would be worth $0.18 more, that's $0.67. Since you have 3900 shares, that brings your investment from $1911 to $2613, that's a small $702 more. Now when Movable Type links to somewhere, it sends it an additionnal value of $20000.

Adam Kalsey
April 17, 2003 10:29 PM

Since I wasn't seriously playing Blogshares, I didn't spend much time figuring out how it works. But now that I've RTFM (read the fine manual), that makes perfect sense. But since the stock price went up when I bought all those shares, my initial investment was only $1092. So that $2613 is a fair increase in value.

April 24, 2003 10:31 AM

Actually, I don't think linking to the blog will _necessarily_ raise its price. Only selling/buying change the price. What it will do (when it is indexed next time) is lower its P/E making the blogshare more 'attractive', and thus more people might buy the blogshare and THEN the price will go up (and I have a sneaking suspicion that the amount the price goes up actually depends on the P/E, but I'm not sure). But if no one buys the blogshare, even with its greater valuation/lower P/E, the price won't change. (for example, if all shares are already owned, none can be bought, price remains the same) At least that is my take

Adam Kalsey
April 24, 2003 11:49 AM

Blogshares does use incoming links to value the blog. That's what the "outgoing link value" is all about. How much links from your blog are worth to other blogs. The p/e is then used to calculate how much the blog value and incoming link affects the share price. The reason that my experiment didn't work is that Blogshares didn't index this site for a few days. And when it did, the link had falled off the front page.

This discussion has been closed.

Recently Written

The Trap of The Sales-Led Product (Dec 10)
It’s not a winning way to build a product company.
The Hidden Cost of Custom Customer Features (Dec 7)
One-off features will cost you more than you think and make your customers unhappy.
Domain expertise in Product Management (Nov 16)
When you're hiring software product managers, hire for product management skills. Looking for domain experts will reduce the pool of people you can hire and might just be worse for your product.
Strategy Means Saying No (Oct 27)
An oft-overlooked aspect of strategy is to define what you are not doing. There are lots of adjacent problems you can attack. Strategy means defining which ones you will ignore.
Understanding vision, strategy, and execution (Oct 24)
Vision is what you're trying to do. Strategy is broad strokes on how you'll get there. Execution is the tasks you complete to complete the strategy.
How to advance your Product Market Fit KPI (Oct 21)
Finding the gaps in your product that will unlock the next round of growth.
Developer Relations as Developer Success (Oct 19)
Outreach, marketing, and developer evangelism are a part of Developer Relations. But the companies that are most successful with developers spend most of their time on something else.
Developer Experience Principle 6: Easy to Maintain (Oct 17)
Keeping your product Easy to Maintain will improve the lives of your team and your customers. It will help keep your docs up to date. Your SDKs and APIs will be released in sync. Your tooling and overall experience will shine.


What I'm Reading


Adam Kalsey

+1 916 600 2497


Public Key

© 1999-2021 Adam Kalsey.