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 Power Of Belief


wealthymatters

Note The Difference


wealthymattersThere’s a huge difference between a good man and a good husband.

There are good men who work all the time.

There are good men who travel for a living.

There are good men who live cross-country.

There are good men who don’t ever want to get married.

There are good men who aren’t good communicators.

There are good men who suffer from depression.

There are good men who struggle financially.

Ladies,if a man is good, but your basic needs not being met on a daily basis – whether it’s sex, emotional understanding, stability, attention or his mere presence, he’s not a good husband for you.

Faith Begets Loyalty


wealthymattersDuryodhana’s wife Bhanumathi and his close friend Karna were playing a game of dice. The stake between them was substantial. As the game progressed, it was evident that Karna was winning and Bhanumathi was losing. Just then Duryodhana entered his queen’s chamber. Karna had his back to the door while Bhanumathi was facing it. Seeing her husband coming, she was about to stand up. As she was just rising, Karna, thinking that she was trying to get away from the embarrassment of certain defeat in the game, snatched at her drape, studded with pearls.

Tugged at by Karna’s powerful hands, the thread snapped and all the pearls rolled on the floor. Queen Bhanumathi was stunned and did not know what to say or do. She was afraid that, for no fault of hers, she would be misunderstood by her husband because of Karna’s behaviour. Seeing her shocked state and sensing that something was wrong, Karna turned round and saw his friend Duryodhana. He was also deeply shocked and distressed beyond words. Here he was, in the royal chamber, playing a game of dice with his friend’s wife and he had caught at her clothes, thus endangering her chaste reputation. He stood dumbfounded and transfixed. Surely, Duryodhana would not tolerate such immodesty. He readied himself for the inevitable punishment. Read more of this post

Helping 1% Style


wealthymatters1)If you are the 1%, your problems are similar to those like you and that’s a miniscule minority. By focussing on solving the problems of the masses, you have a greater chance of making more money. Hence, the thing about focusing on the market at the bottom of the pyramid.

2)When employees have their own problems, they cannot focus on helping you solve yours. So by helping employees, you ensure that they can focus on their work and help you succeed. Hence, the focus on employee welfare.

3)Making money is hard, keeping money is harder. What if tomorrow you are no longer the 1% and all your 1% friends ignore you, you will need at least one of the 99% to help you. Hence, the focus on helping people of proven loyalty.

4)Invest in people. If 1 out of thousand people you have helped turn the favor one day, it is a great deal. Hence, the focus on supporting the talented, those with special skills and those with prospects.

Helping is resource intensive, so help strategically.