For some time, I have observed the blogging industry from both the inside and out. I’ve for some time become convinced that this medium will change the way people interact and the ability of information flows in ways never imagined.

A primary consideration of that progress, from my point of view, is the valuation and eventual commoditization of blogging and the bloggers themselves. I’ve been waiting anxiously for the first blog to be sold, and that time has come.

Peter Caputa notes that one of his active site visitors, Jeremy Wright, has come close to finalizing the sale of his blog for upwards of $4,000. Jeremy apparently made the offer on his site and people have taken the offer seriously. On the other hand, Stowe Boyd also recently cited the eBay auction of the BlogOnTheWeb.com blog community numbering in the thousands for a mere $2,425.00.

So here’s my question: What makes one blog more valuable than another? Natural measures would seem to include:

• Author Dependency - There are many issues associated with the author, but this is probably the most important. If a site is only popular as a result of the skills or charms of the author(s) then a solution that attempts to go on without those celebrities could be fatal.

• Traffic - Surely, prospective buyers will want to know what kind of traffic the blog is generating. Obviously, a little more traffic has never hurt anyone.

• Link Network/Search Discoverability - Blogs with many well-defined links to the blogging community and high visibility in key search contexts may appear more attractive to potential buyers.

• Industry Reach - Since most businesses that might consider buying a blog are targeting the audience, knowing how much of that industry can be reached is critical to making a profitable decision.

• Audience Size - Exactly how many real visitors are there to a site currently. Size does not necessarily matter.

• Audience Demographics - Exactly how coherent are the demographics of your audience, in some cases coherence is good, in others it may not be

• Existing Revenues - A blog already generating significant revenue could be more enticing than one with none.

What would matter to you if considering buying a blog? What would you point out about yours if you were trying to sell it?