July 22, 2008 | Leave a Comment
It stumps me as to how people come up with the guts to post some of the sites I see for sale, and even more so all the information (read BS) they provide to explain away what appears as a scam. The scam being a site that is sold under false pretense, most popular is […]
May 16, 2008 | Leave a Comment
You’ve gotta love this. A person selling a website states revenue and traffic data, and it looks pretty good. Turns out that if you don’t read everything carefully, you might miss the fact that the data pertains to a different site with similar characteristics. You see these kind of shananagins (sp?) all the time. “Another […]
May 6, 2008 | Leave a Comment
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.
April 11, 2008 | Leave a Comment
It goes without saying that you should have a concern if a website seller seems reluctant to provide any information required for due diligence. Some website buyers may not take this seriously.
One of my undergrad finance professors was discussing methods of analyzing corporate financial statements when he summarized one technique as spotting “the funny looking kid” in the crowd. Sometimes when looking at data, you may not know exactly what may be wrong, if anything, but you have to dig somewhere.
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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