evluation of web site with $1500 - $2000 in monthly revenue

[tonyfloyd]

Exactly. Websites have tons of liabilities like:

Hosting fees.
Regular updates.
User management, especially for forums.
Chance of losing search engine rank.
Higher chance of obsolescence.

That's why developed websites sell for lower multiples than parked generic domain names which required zero work. Hell, MySpace.com didn't even sell for 10 years income like BATMAN is suggesting. Does anyone in this thread have any experience in the website market or are you all throwing your uneducated two cents in?

read this.....memorize it.....comprehend it.......then take 2...and call me in the morning....

http://www.ricksblog.com/my_weblog/2007/12/ppc-or-developm.html

my uneducated 2 cents...

 

[dcristo]

read this.....memorize it.....comprehend it.......then take 2...and call me in the morning....

http://www.ricksblog.com/my_weblog/2007/12/ppc-or-developm.html

my uneducated 2 cents...

Development is better then PPC, who doesn't know that and what does that have to do with valuing a website?

 

[CyrusL]

read this.....memorize it.....comprehend it.......then take 2...and call me in the morning....

http://www.ricksblog.com/my_weblog/2007/12/ppc-or-developm.html

my uneducated 2 cents...

This article only further warrants my analysis.

 

[tonyfloyd]

Development is better then PPC, who doesn't know that and what does that have to do with valuing a website?

did someone not say..... "That's why developed websites sell for lower multiples than parked generic domain names which required zero work."??????????

well....u still think that a parked domain is valued more than a developed domain???

 

[CyrusL]

did someone not say..... "That's why developed websites sell for lower multiples than parked generic domain names which required zero work."??????????

well....u still think that a parked domain is valued more than a developed domain???

You're not understanding. Of course domain A developed is worth more than domain A undeveloped. That is the argument in your link and no one in this thread is disagreeing with that.

My point is that domain A developed is not worth more than domain B undeveloped if they both make the same $$$. Given the choice between a generic earning $2000/month parked (with zero work) or a developed site earning $2000/month (with lots of work), everyone with half a brain would take the generic.

That is why undeveloped generics sell for higher multiples of revenue than developed sites.

 

[tonyfloyd]

ah....ok...misunderstood......my bad....

 

[dcristo]

well....u still think that a parked domain is valued more than a developed domain???

They sell for higher multiples because the traffic is more reliable from type-ins and they require no maintenance.

Managing a forum is like managing a business. Whilst you could have thousands of traffic domains earning PPC income in your portfolio, you could only manage a handful of forums.

I had a similar conversation with my brother who is an accountant. When they value assets, the amount of effort required to generate revenue is taken into account. It's the same concept here...

Appraisals of $250K is just absurd, and no it's not because some of us are trying to snatch up a bargain, we are just looking at what the market is buying at and personal experience.