April 22, 2008 | 1 Comment
Wordpress (WP) is a very popular content management system (CMS) that many websites are developed with. It’s not just “blogging” sites but all kinds of websites. There are other popular CMSs such as Joomla but I seem to find more and more sites are WP based on the market today. They don’t necessarily have have […]
April 15, 2008 | 2 Comments
Lately I’ve been thinking about how often I come across the same reasons for a lack of historical data. The first is that the site changed servers, the next is that the website was under a different owner, and today I came across someone who moved a forum out from one domain, put it […]
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.
April 7, 2008 | 1 Comment
A very important lesson in due diligence around buying websites lies beneath.
When a creditor or investor is analyzing a company, one metric that is commonly looked at is the concentration of revenues - typically via customers. This information can tell the investor, lender, or buyer of the firm some very important risk related […]
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.
April 2, 2008 | Leave a Comment
Last month’s purchases results are in and there are some surprises, both pleasant and not-so-pleasant. The Portal video game website that was purchased at $700 had claims of 40,000 uniques per month and about $40 in income. Among many others, one reason for this purchase was it’s revenue increase potential through improving the […]
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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