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Table Of Contents
Introduction ……………………5
Knowing the Basics ……………………7
Appraising a Website’s Value ……………………12
Key Value Indicators ……………………14
Are You Buying or Selling? ……………………21
Sale Negotiations ……………………34
Other Considerations ……………………37
Resources ……………………39
Appendix (sample forms)……………………41
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Introduction
Existing Methodologies and Models of Valuation
Buying and selling is the foundation of any business venture – the capitalist business-owner buys the raw materials and supplies (including other equipments and machineries necessary to put together the final product for sale, be it finished goods or services; manufactures the goods, organizes the marketing system and finally brings the product/service to market. Final product selling price is determined by computing the manufacturing costs, overhead administrative and miscellaneous expenses and then adding a percentage of the product cost to come up with the final selling price.
The booming web business is basically similar but typical methodologies and models of product valuation are either non-existent or hardly ever cut-and-dried. After the initial e-business boom, most e-business investors are now more knowledgeable and circumspect.
The main drawback, especially when talking about selling a website, is the lack of a definite model with which to establish website valuation strategies. Some buyers and sellers eventually settle to use two models:
• Cash Flow (Profit/Revenue) Multiples
• Value of Re-creation
Website valuation is one of the most difficult and complex issues in the World Wide Web. Currently, important factors that have to be considered in establishing a website’s market value are the site’s quantifiable variables, metrics, and instinct. However, where do you draw the line in establishing the value of what you are selling? How do the quantifiable metrics and instinct interplay with each other?
Establishing a website’s market value should include all relevant factors and variables that directly impact the site’s worth similar to buying or selling established businesses, real estate, stocks and bonds.
Other Details- 1 Ebook (PDF), 52 Pages
- 2 Graphics (JPG)
- 1 Salespage (HTML)
- bonuses
- Year Released/Circulated: 2008
- File Size: 3,801 KB
License Details:
[Yes] Includes Reseller Website
[Yes] Can sell Master Resale Rights
[Yes] Can be added to paid membership sites
[Yes] Can be offered as a bonus to one other product
[Yes] Can be packaged
[NO] Can be offered through auction sites
[NO] Can be given away
[NO] Can be added to free membership sites