How To Value A Website?
September 14, 2014 Leave a comment
This 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
There’s a huge difference between a good man and a good husband.
Duryodhana’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.
1)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.



