SitePoint Sponsor

User Tag List

Results 1 to 9 of 9
  1. #1
    SitePoint Wizard mcsolas's Avatar
    Join Date
    Jul 2004
    Location
    Hermosa Costa Rica
    Posts
    1,707
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Valuation of websites.

    I have recently become interested in selling one or more of my sites.

    Looking to find what other sites have sold for broken down by genres.

    I found sites offering valuation reports for $20-60.
    Any one use these services, are they worth it?
    Last edited by mcsolas; Nov 16, 2006 at 11:29. Reason: clarification

  2. #2
    SitePoint Addict
    Join Date
    Jul 2005
    Location
    italy
    Posts
    240
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    IMHO they aren't

    also, beware of the so-called appraisal scam: a guy calls you, offers to buy your site for a good price but before he wants an appraisal from a company he trusts.

    He just gets the money for the appraisal, and then disappears.

    to sell a site, the rule of the thumb of monthly income * 10 (or 12, or 8 ...) is often quoted, but it often osn't approrpiate.

    Unless you have very good arguments against this, that's what most of the people will look to pay. Of cource, there are a LOT of other factors, but that's what a lot of people thinks.

    Have good evidence of income and traffic for last months, or you won't be able to sell for a good price

    Study a few of the listings here:
    http://www.sitepoint.com/marketplace...y?categoryid=1
    and see how those sites sell..

  3. #3
    SitePoint Wizard mcsolas's Avatar
    Join Date
    Jul 2004
    Location
    Hermosa Costa Rica
    Posts
    1,707
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    I have taken a good look at that category. I didnt see anything when I searched for real estate or costa rica... maybe its a great place to set it up. No competition.

    What worries me is that there seems to be a strong current of "adsense mentality" running where ad revenue is the prime valuation factor.

    My site is based around lead generation & mostly high end real estate and vacation rentals are posted.. based in one of the worlds most sought after, and fastest appreciating markets.

    Because I know the value of these leads .. Im going to be asking a premium price for the site.

    This is why Im trying to dig a little deeper than the sp marketplace to value my site.. to regress to real estate terminology: I need better comps.

  4. #4
    ********* user
    Join Date
    Mar 2006
    Location
    Malta
    Posts
    312
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    If i was buying a site, i would consider the income/month * 12 plus age of domain, PR and number of backlinks to your site.

  5. #5
    SitePoint Wizard mcsolas's Avatar
    Join Date
    Jul 2004
    Location
    Hermosa Costa Rica
    Posts
    1,707
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by infonote
    If i was buying a site, i would consider the income/month * 12 plus age of domain, PR and number of backlinks to your site.
    If you did so, your valuation would be quite wrong.

    I moved adsense down, lowering my ctr on purpose. Keeping my users on the site, lead generation has increased. I plan on phasing out 'ads' completely.

    The value of the leads generated is big money. WAY bigger than -any- payouts your going to get from adsense/referral networks. Your 'equation' forgets to takes into account 99% of my core business model.

  6. #6
    SitePoint Addict
    Join Date
    Apr 2005
    Posts
    396
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    So make a case for your business model and show people some numbers.
    Bring out our hope and reason, before we pine away.

  7. #7
    SitePoint Wizard mcsolas's Avatar
    Join Date
    Jul 2004
    Location
    Hermosa Costa Rica
    Posts
    1,707
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by PMichaud
    So make a case for your business model and show people some numbers.
    Quote Originally Posted by mcsolas
    Looking to find what other sites have sold for broken down by genres.
    As you can see, Im looking for resources and info to help me do just that.

    I was asking about the site valuation services to see if any of them would properly evaluate my business model, not just spit out some off based 'adsense valuation'. Im busy and willing to pay to find solid, relevant 'comps'.

    I want to focus on researching selling prices for other sites.

    Anyone have good links to those resources ?

  8. #8
    SitePoint Addict
    Join Date
    Jul 2005
    Location
    italy
    Posts
    240
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by MCsolas
    Im busy and willing to pay to find solid, relevant 'comps'.

    I want to focus on researching selling prices for other sites.
    I am afraid that - as the owner - you are the only one that knows the strong points and the weaknesses of your site.

    Any other "service" could only give you ballpark figures such as monthly income * X. (note that monthly income is not only adsense, leads should eb counted there too)

    Also, the niche (CR real estate) is unknowm to most people so the knowing the value of a lead on your site is quite impossible for a common "appraisal" service.

    Finally, the geographical fact must be taken into consideration. Your costarican site will be worth X to a costaricane but easily X/3 for a US-based buyer.

    I am afraid it won't be an easy sale, because you are convinced (probably correctly) that the value of the site is much higher than "monthly income*12", while prospect buyer have no idea about this.

    So, my siggestion is: search for local buyers that know your niche: competitors, large customers etc.

    If - for example - you know someone that has a residence in your area, and maybe you are giving him leads to him every now and then ... that's the kind of person that knows the value of those leads.

    Anyway, it won't be an easy sale. I can say this for sure because I have a large reference site that gives me $XXX/mo in adsense but much more in other forms, and when I tried to sell it almost only the adsense income was taken into account. I ended up keeping the site!

  9. #9
    SitePoint Wizard mcsolas's Avatar
    Join Date
    Jul 2004
    Location
    Hermosa Costa Rica
    Posts
    1,707
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by frox
    Also, the niche (CR real estate) is unknown to most people so the knowing the value of a lead on your site is quite impossible for a common "appraisal" service.
    re:Unknown
    I wouldnt so casually disregard one of the -worlds- hottest real estate markets and top tourist destinations

    re:"common appraisal" services
    I am not looking for a common one. This one is going to take research to prove value.. but only so much. If there is a service that would geniunely compile market data and facts for me related to this industry, I would be willing to pay a premium for that report ... it just doesnt sound like thats what I can expect from these services. I will end up doing it myself most likely.
    Quote Originally Posted by frox
    I am afraid it won't be an easy sale, because you are convinced (probably correctly) that the value of the site is much higher than "monthly income*12", while prospect buyer have no idea about this.
    Probably acurate. I know first-hand the value of some of the leads coming through There is a solid user base at the site and several people will help spread the word.
    Quote Originally Posted by frox
    So, my suggestion is: search for local buyers that know your niche: competitors, large customers etc.

    If - for example - you know someone that has a residence in your area, and maybe you are giving him leads to him every now and then ... that's the kind of person that knows the value of those leads.
    I will definitely market to my users, buying specific adwords.. a few other ideas.

    Not planning on a quick sale, but I am sitting here in a town where I watch deals like this look like chump change.

    Still, looking for comps. If anyone knows where there is a good reliable listing of how much sites have been sold for..


Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •