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  3. How can you value a web site?

How can you value a web site?

Scheduled Pinned Locked Moved The Lounge
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  • D Offline
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    Debs 0
    wrote on last edited by
    #1

    My Dad has a friend who is interested in purchasing a web site, and has no idea how to value it. So, my Dad asked me, as he thinks I know-it-all as far as these pc-thingys are concerned. I personally have no idea where to start, as all my involvement with web sites has been in a fun, non-profit making context. Where would you start in the case of buying a web site? There must be contract issues, domain name transfers, intellectual property rights etc. The sort of money they are talking of is around £20-30K. If it was me, for that money, I'd want to do my homework and ensure that the contract transfer etc. was pretty watertight, but where do you start with such a thing? Ta, Debbie

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    • D Debs 0

      My Dad has a friend who is interested in purchasing a web site, and has no idea how to value it. So, my Dad asked me, as he thinks I know-it-all as far as these pc-thingys are concerned. I personally have no idea where to start, as all my involvement with web sites has been in a fun, non-profit making context. Where would you start in the case of buying a web site? There must be contract issues, domain name transfers, intellectual property rights etc. The sort of money they are talking of is around £20-30K. If it was me, for that money, I'd want to do my homework and ensure that the contract transfer etc. was pretty watertight, but where do you start with such a thing? Ta, Debbie

      M Offline
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      Maximilien
      wrote on last edited by
      #2

      Debs wrote: purchasing a web site :confused: you can do this ? anyway, if the site generate profit from advertisement, you can see how much people are ready to pay to be seen on that site. Other points to look for would be hosting fees, cost of maintenance.


      Maximilien Lincourt Your Head A Splode - Strong Bad

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      • D Debs 0

        My Dad has a friend who is interested in purchasing a web site, and has no idea how to value it. So, my Dad asked me, as he thinks I know-it-all as far as these pc-thingys are concerned. I personally have no idea where to start, as all my involvement with web sites has been in a fun, non-profit making context. Where would you start in the case of buying a web site? There must be contract issues, domain name transfers, intellectual property rights etc. The sort of money they are talking of is around £20-30K. If it was me, for that money, I'd want to do my homework and ensure that the contract transfer etc. was pretty watertight, but where do you start with such a thing? Ta, Debbie

        N Offline
        N Offline
        Nick Jacobs
        wrote on last edited by
        #3

        Debs wrote: I personally have no idea where to start, as all my involvement with web sites has been in a fun, non-profit making context. What kind of site? One that sells products, etc.? Just things I'd look at: 1) if it is a site that sells products, who gets the rights to sell the products, (Where does the money go) 2) What kind of traffic has been going to this site? 3) You mentioned intel prop, contracts, etc. Do any of those exist with the current site prior to this sale point? (Am I acquiring somebody elses legal mess?). Just a couple of thoughts, by no means any legal advice given. Nick A good lawyer would certainly help. :) (And one I'm not) This are my own opinions. You know the rest.....

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        • D Debs 0

          My Dad has a friend who is interested in purchasing a web site, and has no idea how to value it. So, my Dad asked me, as he thinks I know-it-all as far as these pc-thingys are concerned. I personally have no idea where to start, as all my involvement with web sites has been in a fun, non-profit making context. Where would you start in the case of buying a web site? There must be contract issues, domain name transfers, intellectual property rights etc. The sort of money they are talking of is around £20-30K. If it was me, for that money, I'd want to do my homework and ensure that the contract transfer etc. was pretty watertight, but where do you start with such a thing? Ta, Debbie

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          C Offline
          Colin Angus Mackay
          wrote on last edited by
          #4

          Debs wrote: interested in purchasing a web site, and has no idea how to value it I guess the same way as you value any other business. I don't think there is anything special about valuing a commercial web site compared with any other business. (I am, of course, assuming this is a commercial venture) One rule of thumb I've been told about is to take the annual turnover and multiply it by 10 (or 5 for a service company). Of course this is a very rough indication, but it could make a good starting point. At the end of the day you're best couse of action is to see professional advice.


          EuroCPian Spring 2004 Get Together[^] "You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar

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          • C Colin Angus Mackay

            Debs wrote: interested in purchasing a web site, and has no idea how to value it I guess the same way as you value any other business. I don't think there is anything special about valuing a commercial web site compared with any other business. (I am, of course, assuming this is a commercial venture) One rule of thumb I've been told about is to take the annual turnover and multiply it by 10 (or 5 for a service company). Of course this is a very rough indication, but it could make a good starting point. At the end of the day you're best couse of action is to see professional advice.


            EuroCPian Spring 2004 Get Together[^] "You can have everything in life you want if you will just help enough other people get what they want." --Zig Ziglar

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            Debs 0
            wrote on last edited by
            #5

            Yes, it sells a product. I guess the potential purchasers must know the turnover, the client base etc. It's the web aspects that they aren't as familiar with. As I said, if it was me then, yes, I would seek professional advice. Are there solicitors/agents who specialise in such business transfers? How would they find one? Debbie

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            • D Debs 0

              My Dad has a friend who is interested in purchasing a web site, and has no idea how to value it. So, my Dad asked me, as he thinks I know-it-all as far as these pc-thingys are concerned. I personally have no idea where to start, as all my involvement with web sites has been in a fun, non-profit making context. Where would you start in the case of buying a web site? There must be contract issues, domain name transfers, intellectual property rights etc. The sort of money they are talking of is around £20-30K. If it was me, for that money, I'd want to do my homework and ensure that the contract transfer etc. was pretty watertight, but where do you start with such a thing? Ta, Debbie

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              J Offline
              Jim Crafton
              wrote on last edited by
              #6

              If the domain name sounds or looks even remotely like Microsoft, then it's probably worth a $100, plus a free tour of the Microsoft campus. However, if you can make sure that Microsoft's evil attack dog lawyers threaten to sue you first, publicize it, get the media to completly misrepresent the case, get Slashdot to mention you, then you might drive the price up to a couple of thousand. Of course, as always, your mileage may vary. :) ¡El diablo está en mis pantalones! ¡Mire, mire! Real Mentats use only 100% pure, unfooled around with Sapho Juice(tm)! SELECT * FROM User WHERE Clue > 0 0 rows returned

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