Factors affecting a website valuation

Discussion in 'General Business' started by webgeekent, Jan 10, 2008.

  1. #1
    What factors are there that someone should take into consideration when considering buying a site and placing a value on it.

    What technology has been used - for cost of updating/maintaining?
    Traffic quantity - unique and page views
    Traffic sources
    Income quantity and sources
    If the income is adsense has the price per click for the current owner been boosted by other sites on their account with high quality traffic
    Age of site and income traffic history
    Legalities - is anything bad being inherited
    Design - is it conducive to maximizing income
    Hosting requirements - anything out of the ordinary or expensive?
    How easy will it be for a new site to compete with the one in question
    Are specific expertise required to run, maintain or provide content for the site?
    What type of post sale support will the seller provide?
    Is the site failing in areas that can easily be rectified to quickly improve the sites income
    Can the sites infrastructure be re used for other sites that works in a similar way but target different markets?
    Which way is the trend moving for the site’s topic?
    Does the domain name include key words and phrases that will probably help stabilize its search engine position...or improve it.
    Is the site currently providing a free service that people might actually be prepared to pay for.
    Is the site providing a paid service with a low conversion that might be better to offer for free and capitalize on the traffic?
    Does the site have a bad reputation with isps...is it blocked for spam etc?
    Does the site have a member or subscriber list that you think you can offer new products/services to.
    If the site is selling a product or service has the current owner ever made a special offer to his list. If not this creates an opportunity if they have when, they may have just taken a lot of cream out of the pot!
    What is the seller’s position with regards need for a quick sale?

    Anyone got anything to add?
     
    webgeekent, Jan 10, 2008 IP