I missed the boat on the Internet Bubble in the ’90s and don’t want to miss out again this time. So let’s do a quick comparison between MyBlogLog and SEO Black Hat:

MyBlogLog sold to Yahoo for $10 Million.

Yahoo has acquired MyBlogLog reportedly for $10 million. Does anyone stop to do the math on these things? MyBlogLog started business in July…just 6 months ago, and they have 5 employees. They reportedly serve 45,000 blogs, have 33,000 registered users, and zero revenue.

MyBlogLog did actually have some revenue for the real time stats – $25 per year per user that bought the upsell. But it is dwarfed by the $23,000 per month that SEO Black Hat makes in subscription revenue.

MyBlogLog is fad widget that will be destroyed once spammers attack it in full force. SEO Black Hat is the most recognized brand in black hat that will continue to grow as more people understand the value of spamming, algorithm and social network manipulation.

MyBlogLog has a bunch of “look at my boobs” icons and no real community. SEO black hat has the attention and discussions of the most successful, clever and affluent web entrepreneurs in the world.

But MyblogLog had the “right people” and the “right money” involved. They were great at playing the Venture capital Ponzi Scheme.

A Ponzi scheme is a fraudulent investment operation that involves paying abnormally high returns (”profits”) to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business, named after Charles Ponzi.

About 9 months ago I asked a very prominent Venture Capitalist what they would pay for a network of 5,000 sites that generated a profit of $1,000,000 per year. The reply I got was:

“That would not be the type of deal we would be interested in getting involved with”

Why? Because Internet Venture Capitalists are not interested in revenue or profits. All they care about is finding that greater fool who will pay more for the crap widget or network than they paid.

So yes, SEO Black Hat is for Sale. It’s definitely worth more than MyBlogLog – but I’m not too greedy. I’d be willing to part with it for just $1 more than the $10 million MyBlogLog pricetag.

Unfortunately, it’s not a clever Ponzi Scheme that fits into the greater fool theory that governs Internet Venture Capital Investing today. So I suspect that SEO Black Hat will stay under its current management unless we experience a paradigm shift that brings Internet investing and business in the Venture Capital Space back to what’s really important:

Profits.