May 6, 2008 |
In an earlier post I was talking about some results from recently purchased websites. A video game related website that I bought came in at $34.44 it’s first month (March). The previous owner claimed about $38/month in revenue…all from adsense.
Funny thing is, this site only made $19.74 from adsense the first month. Why? Prior to buying the website, and one of the primary reasons for the purchase, I felt that there was a better monetization method for the audience. Traffic was good, but CTR on adsense was bad. I went with an entertainment-style affiliate program on most of the pages, along with adsense.  I felt the entertainment (games/videos/etc) stuff fit better with the sites audience, and so far, so good.
The balance of march’s earnings was from the entertainment affiliate ($14.60) which was actually a partial month for the program. April results are in and the site made $16.16 in adsense and $25.65 from the affiliate, bringing it above the claimed revenue mark to almost $42. This month is looking even better so far, but there is plenty of time left.
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Table of Contents |
INTRODUCTION |
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What Will You Learn From This Website
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What this Website is Not
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| PART I – ONLINE ADVERTISING ARBITRAGE: PLAYING BOTH SIDES OF THE ONLINE MARKETING MARKET TO MAXIMIZE PROFIT & WEBSITE VALUE |
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Basic Market Components
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Supply
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Demand
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Price, Bids, Asks
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Elasticity
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Pricing
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Demand
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Supply
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| Real Arbitrage Example |
| Online Advertising and Arbitrage - The "Click Thru Value Chain" and Commoditizing the Market |
| Development, Traffic, and Hedging Your Cash Flow |
| Part 2 of Development, Traffic, and Hedging Your Cash Flow |
PART II: Valuing a Website: What is Your Site Worth? |
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The Headaches Pricing Websites
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Historical Growth: Geometric Mean vs. Average
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Terminal Value
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Summary of Discounted Cash flow Analysis for Website Valuation
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Market Value Approach to Website Valuation
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A Note on Using Metric Multiple Website Valuation Models
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