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Read The Writing On The Wall

wealthymattersDon’t waste time trying to fight the obvious and get others to change their priorities. Gauge their interest and cut back on the time, attention, effort and resources you have and redirect them to better prospects.

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How To Get A Million Dollar Idea

wealthymatters“My preferred terms for the process of ideation are synthesis and reduction.  In synthesis, a large number of ideas are created based on the problem at hand – without consideration for practicality, costs, risks, timeline, and other factors.  In reduction, some ideas are slowly and progressively eliminated.  Ideas which are impossible, impractical, or undesirable are discarded first.  The ideas worth pursuing are prioritized and pursued.  Next, those which aren’t working are also discarded.  Through this process of reduction, the ideas that are truly valuable eventually float to the top.  Google Labs is a good example of this process of synthesis and reduction.  Of thousands of ideas which are discussed, only a few hundred are pursued.  Of those, maybe a few dozen are marketable.  Only 3 or 4 find a profitable business model.  However, if you had not discussed thousands of ideas in the first place, you could not have found the 3 or 4 that are truly valuable.

Go meta.  Whenever you are working on a new idea, task, or product, always be ready to generalize and look at the bigger picture.  For example, if you are tweaking your shopping cart, briefly consider if customers would be better served by a total redesign of the shopping cart – or if you even need a shopping cart, eg. Amazon One-Click. Read more of this post

How To Value A Website?

wealthymattersThis week I saw an ad in the ET for the sale of a website. The asking price was 29lacs,negotiable and the only other figure declared was 11,000 articles of a literary nature in English . This seemed to be a cost plus model, each article costing 260 rupees apiece.This got me interested in researching what is the international practice in such cases. Here is what I found:

There are 5 valuation methods for websites:

1.Comparable Sales Method:

Go to a site such as flipa.com and find the sale price of sites in your niche that are as close to your site’s age, traffic and revenue as possible. The closer the numbers are for a comparable site, the higher relevance the site has in the valuation. Then average out the sale prices, after omitting the outliers to get a comparable valuation of your site.

2.Revenue Multiple Method:

Using the same list of sites from step 1,divide the auction price by the yearly or monthly revenue, to arrive at multiples. Multiples are affected by the age of the site, whether the buyer has other sites in the same niche and whether they know of better monetization techniques. The average of the multiples of the most comparable sites can be used to value your site. Read more of this post

The Difference Between Girls And Women


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