Posts Tagged ‘web valuation tool’

Website Valuation Tool released

Friday, November 30th, 2007

After a few almost sleepless nights and a lot of help from other members of our team we were finally able to release the first beta version of our new website valuation tool. This tool is a free online web site value calculator that can help you find the value of a website you want to sell or are interested in buying. Give it a spin and let us know what you think. We are always looking for suggestions to improve this tool.

Unfortunately, we were a little busy to create the tool that we still have not had a chance to create any documentation for the tool. However, it is pretty self-explanatory and is pretty easy to figure out.

Factors to take into account when valuing a website

Wednesday, November 28th, 2007

There is no established formula for the valuation of a web site. However, there are several factors to consider when valuing a website. These items are discussed more fully in our website valuation article, but we wanted to provide you with a brief summary:

A. Profits and Cash Flow (This is really revenue minus costs)

  • 1. Source of Revenues
    • a. Monthly products or services sales from site.
      b. Monthly membership dues
      c. Subscription
      d. Commissions from other sources
      e. Revenue from partnership deals
      g. Advertising

      • i. Sell through rate
      • ii. Does the site have an ad delivery system in place

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