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How to Value a site for sale
Old 07-27-2009, 03:29 PM How to Value a site for sale
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Hello
I am looking to purchase a website to learn about running a website. I was wondering how you check the revenues of a site to make sure they are legitimate. I have already purchased a couple of scam sites, and had to argue with the vendors to get my money back. I only new they were scam sites after allowing one of my webmaster friends to check traffic stats ect.. in the control panel. What I am looking for is a walk through on what you would do to check revenues and traffic and make sure a site is legit when competing in a Bid for a website. Thanks and have a great day.
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Old 07-27-2009, 03:53 PM Re: How to Value a site for sale
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2.5 times the annual revenue the site makes is a usual ball park figure

other than that it seems to be think of a number, triple it and hope some mug will come along with a wallet much bigger than their brain.
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Old 07-28-2009, 05:39 PM Re: How to Value a site for sale
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This is a very good website valuation guide.

To verify traffic, ask for guest access to Google Analytics - if they don't have GA you could always get them to put your code on their pages. To verify revenue, you could get them to (words fail me at this point!) give you access to what their screen is doing (a bit like for remote assistance). Or even get them to make a video of them accessing their account.

If anything smells fishy, just walk away and don't think twice.

If all you want to do is learn about running a site, I'd encourage you to create one from scratch and run with that. I'm sure you'd learn more than picking up an 'established' site.
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Old 08-04-2009, 03:26 PM Re: How to Value a site for sale
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in fact,establish a website is a huge task,you have to upgrate it frequently and keep PV,that's difficult.i understand your anxiety ,so choose a great host is important.
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Old 08-11-2009, 05:15 PM Re: How to Value a site for sale
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There are a few ways...most important thing is get original docs...for whatever it is.

If they say there are revenues, get bank statements demonstrating the revs
If it is traffic, hopefully get some 3rd party analytics access about the site
Whatever it is get original docs

Then, when you buy it, make sure the language in the contract says that the represent and warranty that the certain statements about revenues and traffic are true and accurate.....and if it isn't true, that you get your money back.
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