How do you work out the value of a website?

Discussion in 'General Business' started by Paulie, Sep 22, 2009.

  1. Paulie

    Paulie Active Member

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    #21
    Yeh i dont think anyone can take them seriously somehow
     
    Paulie, Sep 28, 2009 IP
  2. MarTh-

    MarTh- Well-Known Member

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    #22
    Yep I've even heard buyers paying 2-3 years for very large sites <3

    unique daily views and ad and donation profits minus server costs is a good estimate yea?
     
    MarTh-, Sep 28, 2009 IP
  3. cjaccardi

    cjaccardi Active Member

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    #23
    it all depends on the quality of the site ,well established sites sell for 10 years of its net or grossing profit.
    while crappy ones will sell per monthly income

    that is to vague to answer way to many things to consider.
     
    cjaccardi, Sep 29, 2009 IP
  4. Paulie

    Paulie Active Member

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    #24
    Yep im starting to realise this. Ive had some relativly good offers but nothing that has made me prepared to part with it as of yet.
     
    Paulie, Sep 30, 2009 IP
  5. simply-seo

    simply-seo Peon

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    #25
    Yea i just hate those valuator sites they are not accurate.
    It depends on geographic area of your visitors, page rank, alexa and the depth of your niche, if its a membership site it also depends on how many members you have.
     
    simply-seo, Sep 30, 2009 IP
  6. Paulie

    Paulie Active Member

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    #26
    Geographic is mainly European, though traffic comes from over 140 Countries. PR = nothing yet. Alexa 151k, Depth = Specalist. Members.. Coming up to 31k, not bad for 2 months
     
    Paulie, Sep 30, 2009 IP
  7. contra10

    contra10 Member

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    #27
    you would charge them by the average a site has in revenue per month multiplied by 12 if there is no revenue then the amount of potential you think it may generate
     
    contra10, Oct 1, 2009 IP
  8. Paulie

    Paulie Active Member

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    #28
    Is up and down revenue wise as its still new and getting established. Just hit 2 months. Have since taken in another $160 in advertising.
     
    Paulie, Oct 1, 2009 IP
  9. promisem

    promisem Active Member

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    #29
    They sometimes use three ratios:

    1. A multiple of annual revenue
    2. A multiple of audience
    3. A multiple of profit

    The best approach is to make a buy based on the profit. It's like buying a stock of a company on the stock exchange. A price to earnings ratio of 15 means the stock is priced at 15 times the profit.

    To put it another way, if you spent $10,000 on a Web site that produced a 1% profit, you would be better off putting that money into a CD instead.

    Also, two to three times annual revenue is not out of the ordinary.
     
    promisem, Oct 1, 2009 IP
  10. Paulie

    Paulie Active Member

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    #30
    I did advertise the site on DP but have since (hopefully) found an invester for the project i was trying to raise funds for so if so the site wont be advertised for sale anymore anyway.

    Its hard to tell with a site thats not established and my offers have varied quite a bit as a result.

    Edit: Have just got onto page one, 2nd from bottom for a keyword with 44,600,000 results :)
     
    Last edited: Oct 1, 2009
    Paulie, Oct 1, 2009 IP
  11. SonnyCooL

    SonnyCooL Peon

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    #31
    for huge site :
    1. Targeted traffic. (country, area targeted).
    2. Niche. (Cnet all about gadget, Amazon Book)
    3. Income. (profit from AD, Product sell most important).
     
    SonnyCooL, Oct 1, 2009 IP
  12. jkapadia1983

    jkapadia1983 Peon

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    #32
    the better way is to go for auction....
     
    jkapadia1983, Oct 1, 2009 IP