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Page views vs Uniques

Does this affect website value

     
3:51 pm on Oct 30, 2004 (gmt 0)

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I would like your thoughts on the likely value of a website if it were to produce around

Over 1 million page views per month
Uses 100GB bandwidth per month
Achieves $1000 per month in advertising
Achieves $4000 profit in sales per month
Roughly 120,000 uniques per month

What I am interested in would be do you think the fact that a website that can generate maybe 10 page views from every unique make it more valuable, and if so how would this factor into the overall value of a website as you see it, from the example stats above?

Thanks
Scott

4:56 pm on Nov 1, 2004 (gmt 0)

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Over 1 million page views per month
-This is good if you can sell banners on page impressions, which is rare nowadays.

Uses 100GB bandwidth per month
-I doubt this is correct, because your avg page size would be 105kb

Achieves $1000 per month in advertising
-This is a small amount for a website of this size, It probably just covers the cost of hosting

Achieves $4000 profit in sales per month
-This is nice if it can be secured over time, but again it is not very impressive for the size of the site.

Roughly 120,000 uniques per month
-This is a good number if you can convert them into sales. Looking at the uniques and your sales profit I doubt you are.

You could probably make more money if you redirected all 120,000 uniques to a porn or gambling site. If you are looking to sell this site you might want to increase the revenue streams first. The value of the site depends on how much money you can make from it. The size of the site is not the most important factor the conversion rates are.

5:27 pm on Nov 1, 2004 (gmt 0)

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The figures aside, presuming they are correct do you go with the general assumption that 12x monthly profit is the best way to value a website?

Or are there other important factors that affect this.

7:58 am on Nov 4, 2004 (gmt 0)

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Value the puppy based upon future P/E. After all that is general market does.....LMAO!

You make $5K per month in net profit, assuming your figures were net!

So at a P/E of 10 (poor performer) the site is worth $600K

At a P/E of 30 (MS type performer, long term stable) the site is worth 180K

At a Google P/E of 468 the site is worth about 28 million!

So which is real? I'd buy at about $200K, one third of the worse performer shown. Doesn't mean you can't con people into the $28 million number, after all, Google aren't having any trouble in finding suckers!

6:49 pm on Nov 4, 2004 (gmt 0)

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So your site clears $60k a year. Minus your expenses, leaving you with say $48K net.

Stock at cost. Any hand written code not depreciated to zero?

Any valuable trade marks/brands?

Any other assets?

Hard to say what the value is but going by what Ive seen for sale and knowing what they made in the end id say your site was worth arod 12 - 15 months net profit. Excluding of course the other factors above.

7:03 pm on Nov 4, 2004 (gmt 0)

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Achieves $1000 per month in advertising
Achieves $4000 profit in sales per month

The advertising is an income not expense , I was just using nett figures and I am talking about electronic goods so no stock.

1:55 am on Nov 5, 2004 (gmt 0)

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Overall you're getting a CPM of $5.00, which is good. This is the bottom line, but your stickiness factor of 10, would also be a great selling point.
8:45 pm on Nov 9, 2004 (gmt 0)

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you forgot one very important metrix: how many visitors do you have from the US, Canada, UK?
6:38 am on Nov 11, 2004 (gmt 0)

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>> So at a P/E of 10 (poor performer) the site is worth $600K

If i can get even a P/E of 5 , i will sell all my sites and just retire :) ...IMHO offline valuation models dont work online , that too for sites which depend on SE's for majority of the traffic!

 

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