Posts Tagged ‘Website Valuation’

 

Thursday, May 29th, 2008

Online marketing is all about generating a high traffic towards your website. You spent long hours and sleepless nights in making your website attractive so that large number of visitors views your pages every day. If you don’t know the true value of your website’s visitors then the chances are you are unaware of your site’s actual worth. You must be able to evaluate your visitor’s so that you have an idea about the quality and value of your website. Therefore, valuing websites is important in website buying and selling business. You can use the following methods to assess the true value of your visitors:

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Friday, May 23rd, 2008

Determining a website’s value is required if you want to get into the business of buying and selling sites for profit. There are various factors used to determine a site’s value. Knowing these factors can be crucial to your success in the venture. Here are some of those factors:

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Wednesday, May 21st, 2008

When selling or purchasing websites determining their true value is important, especially if the value of your website is less than $500,000. It is recommended that that you should first decide the right asking price. Most of the people get confused when they are involved in buying or selling the websites, since they are unable to differentiate between the actual price and true value of the website. Valuing websites steps in here.

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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.

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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Tuesday, November 20th, 2007

According to some publications Venture capitalists look at the following metrics when valuing an Internet property:

Cost of Acquisition: At the most prized content sites, at least 35 percent of new users are enrolled by existing users. In other words, they are added “virally.” The best example of this is MySpace.

Site Stickiness: A site becomes more valuable if frequent repeat visitors make up a high percentage of its traffic. At Facebook, for example, nearly 65 percent of users visit the network daily. User-generated content – such as photos, reviews, and links – tends to increase the stickiness of the site and will increase it’s value.

Add-on Services: Sites that offer fee-based premium accounts have more opportunity for future revenues and will command higher valuations. Even a 1% take rate on premium services is considered healthy.

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