Forum Moderators: phranque
How much would you say that your business (Company, Sites Network, etc) worth?
At the moment, my sites worth $0, because they are in the development fase, so, what about you and your "business"?
Sorry for my poor english
Matias
BZ
any takers?
Karl
My sites worth an out of date can of beans and half pint of abbot ale.
I'm quite seduced by the idea of a 20K page view a month site being worth $5K - that would make my 60K page view a month site worth $15K (in my own little dream world)
Who wants to value my site then (this is entirely theoretical, it's not for sale) . . .
It's forums, only forums. Been running for just under 6 months. 60K page views a month (rising constantly), average 9 pages per visit. Well indexed in Google, and a PR fluctuating between 4 and 5.
Without getting specific, the topic area attracts people who are likely to be considering international travel, taking some kind of educational course, or purchasing books / software.
I have no intention of selling, as it's a hobby and I have plans to use the site to kickstart another, potentially profitable, site in the near future. I've also been told that forum traffic is often considered 'low quality', though I'm not sure why.
I'd be interested to hear what people reckon though, and also what the usual factors are in determining the value of a site - number / quality of visitors, age of site, PR, whatever . . .
Roddy
3 years ago when I was getting 20k page views per month, I got an offer to sell my domain et al for $5k US. Now I get close to 100k pages viewed per month, so the site should be worth at least $25k right?
Not true. 3 years ago people were doing crazy things with valuations. Now it has all settled down and valuations are much more realistic.
A business (not just web business) can be estimated with a number of formulas. However, here is a sensible one for websites:
7 times the annual RETAINED income (i.e. after all the PPC, hosting and other costs) are taken out."
Why? because this represents a suitably high return for a person investing his money, which reflects the risk. It offers a MUCH higher yield than a building society and therefore represents an interesting proposition for a serious investor.
So - take what you earned in the last 12 months (as declared on you tax return) from your websites and times by 7. That should give you some indication.
Of course, solid business models are worth much more, but only if you find the right buyer.
I'm quite seduced by the idea of a 20K page view a month site being worth $5K - that would make my 60K page view a month site worth $15K (in my own little dream world)
Again, it can't be about page views. It is time to work out how to monetise that site - does it have something to sell of value? If not, get something to sell with a large ROI and flog the living daylights out of it.
Not true. 3 years ago people were doing crazy things with valuations. Now it has all settled down and valuations are much more realistic.
3 years ago when I was getting 20k page views per month, I got an offer to sell my domain et al for $5k US. Now I get close to 100k pages viewed per month, so the site should be worth at least $25k right?
7 times the annual RETAINED income (i.e. after all the PPC, hosting and other costs) are taken out."
Anyway - still as good a way as any to value a web business.
