July 22, 2008 |
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 the traffic source. A paid-for burst of traffic is the most common culprit - when that burst is sold as some sort of natural traffic.
I just finished reading an auction post for a video game site for sale (flash games). The claims were 80,000 views, 30,000 uniques, $80 in revenue per month.
Note that it was listed July 22. The “proof” provided were screenshots of January information only. The poster claims that “The traffic is low last months because i didn´t have time to add new games to the site”. This excuse may be fine until you consider the site is 20 or so months old, and there are a total of THREE (3) games on the site. See the problem here?
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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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