How do you value a website
- Thread starter temi
- Start date
Current and potential earnings are the ONLY value to a site. now the earning value does not have to be from the current business model. EG if this dating site had a genuine varifiable mailing list of say 10,000 people, then $50k is quite cheap.
Not really. An opt in mailing list is worth its weight in gold. EG.
A verified email addres is worth about $5 so if you pay $50,000 for 10,000 registered email addresses you can sell the list alone for that amount. Sell the list twice and you make $100,000- 50K = 50K profit
I would break them down into smaller lists and sell them, but only after I had mailed them with my list of offers.
Say for instance that the conversion rate on my mailing is 5:1 if I mail out 10,000 offers to the mailing list, I know I am going to get 2,000 conversions. if my sale value is $30, then my first mailing is going to make me $60,000 $10k profit on my first mailing
The website then becomes a non event, I would probably sell it on to someone who wanted to run it, sell it for $10k and I am now $20k up for a couple of mailings and a bed and breakfast sale of a website.
This is what I meant by the value of a website not always being the value of it as it stands. When buying a buinsess you should loo at the assets that business has, and look at how you can monetise those assets.
A verified email addres is worth about $5 so if you pay $50,000 for 10,000 registered email addresses you can sell the list alone for that amount. Sell the list twice and you make $100,000- 50K = 50K profit
I would break them down into smaller lists and sell them, but only after I had mailed them with my list of offers.
Say for instance that the conversion rate on my mailing is 5:1 if I mail out 10,000 offers to the mailing list, I know I am going to get 2,000 conversions. if my sale value is $30, then my first mailing is going to make me $60,000 $10k profit on my first mailing
The website then becomes a non event, I would probably sell it on to someone who wanted to run it, sell it for $10k and I am now $20k up for a couple of mailings and a bed and breakfast sale of a website.
This is what I meant by the value of a website not always being the value of it as it stands. When buying a buinsess you should loo at the assets that business has, and look at how you can monetise those assets.
R
Robster
Guest
I can't remember where but I saw a thread on this subject before and someone suggested the following formula:
value of the domain + 15 x current monthly income
i guess if the site had been built up, but its revenue potential not yet exploited you would be working it out on projected income which as some of the other posts have illustrated is a lot more difficult.
value of the domain + 15 x current monthly income
i guess if the site had been built up, but its revenue potential not yet exploited you would be working it out on projected income which as some of the other posts have illustrated is a lot more difficult.
Ah now this is where it becomes murky. 'Optin' means that they have AGREED to receive emails in the future. If someone registers at a forum that does not make it an opt in email address. What you need to do is to have them click a terms and conditions button that allows you to send emails to them. If not then you are just another spammer.
Spam email addresses are worth $1 a piece, so Temi you are sitting on $30k
Thanks for that, this is excellent, I will like to think its worth more than that as this are people who bought services and agreed as part of the service that we may contact them from time to time.
Anyway, not planning to sell their email address but just in case I want to retire from that industry just want to know potential exit pay off for me
Anyway, not planning to sell their email address but just in case I want to retire from that industry just want to know potential exit pay off for me
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