yvt360 - 11:21 am on Mar 18, 2005 (gmt 0) Just something to chew on.
I think there may be a moving scale of how much a site is worth in relation to how much revenue is made. What I am saying is a website that generates $100 per month may only be worth 10 months earnings, but I think when you get to a website generating $5000 or $10,000, or even $100,000 per month, the scale of value maybe more in relation to that of a business. What you have to take into condiseration is the current value and revenue, and what the value and revenue will be when you have finished paying for the website.
If you buy a website that generates $120000 per year in revenue, and it takes you 5 years to pay it off, hopefully you have improved it and the revenue has grownt, therefor adding to the value of the site. If the website increases in value by 10% each year and it takes 5 years to purchase the website, you have generated $600,000 in revenue. I think for the higher value websites it might be more like 2-3 years of revenues, after all, when you are finished paying for the website you have an asset that should be worth at least what you paid for it.
Just something to chew on.