How much is this website worth?

Should we ask for more?

[casey133]

Here is some basic info that may help give you a better idea of how much this website may be worth.

Local Storefront and database Statistics:
Launch Date: 06-26-2006
Products: 61
Customers: 21
Date of first purchase: 7-11-2006
Gross purchases since launch date: $615.50

Affiliate Statistics:
Affiliates: 9
Total Banner Impressions: 4,451
Clickthroughs: 767

Types of acceptable payment: Authorize.net - Credit Card - Cash on Delivery - iPayment- Check/Money Order - NOCHEX- PayPal- 2CheckOut- PSiGate- SECPay

Current active payment methods: PayPal - Check/Money Order (Other methods can be activated from the administration panel).

Summary of visitors in the last seven days - 1,033

Traffic stats:

Day-----------Page Loads-----------Unique Visitors
Sun--------------28----------------------5
Mon--------------460---------------------158
Tue--------------218---------------------71
Wed--------------104---------------------24
Thur-------------57----------------------17
Fri--------------61----------------------23
Sat--------------47----------------------18
Sun--------------58----------------------17

We are currently ranking between 1-6 on MSN for keywords relating to our products and between 3-13 on Google for many of the same keywords.

Our current best offer is $1,600.00 which will be split 50/50.

I have put little time into it after we added the products we have now and we have spent no advertising money at all, all advertising has been word of mouth.

[andye]

Hi casey,

Gross purchases since launch date: $615.50

but what's the profit margin?

We are currently ranking between 1-6 on MSN for keywords relating to our products and between 3-13 on Google for many of the same keywords

To me it sounds as though these rankings could be the basis for a better valuation than just looking at the sales (which are really small) - but it depends on your industry.

hth, a.

[casey133]

We target a small group of fans of a growing sport, it's not the most popular right now but it's growing.

The products are actually drop shipped so we only made an actual profit of about $300, maybe, and that's devided between two people.

Like I said, not much business at all but we havn't spent a dime on advertising as it's all been word of mouth, so other than time we only spend money on hosting which is cheap and based on a yearly basis.

[andye]

only made an actual profit of about $300

Don't say 'only' :)

It's true that $300 isn't much actual cash, but a gross profit margin of 50% is excellent.

If it's a growth sport then that's a good thing too.

Re drop-shipping: what's to stop future competitors from getting supply from the same wholesaler and undercutting prices on the same goods, forcing you to lower prices and reduce your margin?

I'd be interested to hear what your motivation is for selling - it sounds as though you could advertise a bit and increase revenues pretty quickly, at 50% margin this could be a good business for you for a while (until larger competitors move in, maybe).

best,
a.