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April 7th, 2006, 03:40 PM #1Fair Price for Site
Someone is interested in buying a domain, site and community. Is there someway to determine a fair asking price. I'm not sure if I even want to sell but I wouldn't turn down a great deal. TIA
April 7th, 2006, 05:01 PM #2
This question cannot be answered without giving full details. Its like asking for the fair price of a house, car or diamond without giving details.
April 7th, 2006, 05:24 PM #3Originally Posted by JJJay
April 7th, 2006, 05:45 PM #4Originally Posted by Save Benjamin
April 7th, 2006, 08:35 PM #5
- Join Date
- February 20th, 2006
- Bay Area, CA
April 7th, 2006, 08:37 PM #6
Some general guidelines used on other site sale forums (just estimates, not saying these are written in stone)
Adult sites: 3-6 mos earnings
Typical SE/PPC driven content site: 10-12 mos earnings
Community turning profit: 2 yrs earnings
April 7th, 2006, 09:22 PM #7
- Join Date
- January 18th, 2005
Notes on Valuation of Developed Websites
How much will it cost to create a new similar (comparative) website today. While prices would certainly vary from developer to developer, actual offers from developers can give a realistic idea about the costs.
While all traffic is not equal, the average of top ten pay-per-click bids on the site's primary keywords can give a fair idea as to the value of traffic the site is generating. If the average value is, say, $0.25 per click and the site gets 5,000 unique visitors every month then the value of traffic can be estimated at $1,250 per month or $15,000 annualized. Opinions vary as to whether the annual value is fair or it should be calculated for a longer period.
If the site is earning a net profit of, say, $1,000 per month from the sale of its products or services then we can annualize the value at $12,000. Again, opinions vary as to whether the annual value is fair or it should be calculated for a longer period. However, a website that generates $1,000 with little or no effort will be worth substantially more than a website that requires, for example, stocking and shipping of goods.
The valuation of the product or the service itself sold or provided by the site will, in all probability, require a separate and equally complex valuation. This will not be applicable to all sites.
Original and exclusive content on the site or a database of useful information or of users / subscribers / customers, if present, can make a lot of difference and add substantial value to a site. However, over time, the quality of the content or the database will surely reflect in the traffic figure calculated above.
Although domain name values declined substantially (seem to be on the rise again) compared to the pre-bubble days, in general, one-word generic and type-through .com names are still a rare a commodity. If a site is built on such a domain, it will command a substantial premium.
Obviously, there would be more variables but these notes provide a starting point for negotiations to begin.
April 8th, 2006, 01:13 AM #8
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