April 11, 2008 |
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.
While browsing auctions today I came across a site claiming “in top 7% of all visited websites”. Alexa links were provided and for the life of me I couldn’t figure out how the website seller came up with this stat.
In any case, I just wanted some clear traffic details. Uniques per day or month, preferably for at least a few months. I posted a request for this specific information and the website owner replied vie PM with the following:
Our site is hosted on godaddy type hosting, so there is no cpanel. Site does pretty good though!
Will take $260 for it. (that is the reserve price!)Thanks
Actually, no thanks. Just this simple reply has completely turned me off to buying this website. As mentioned many times before, the risks are high. There is an incentive for “pump and dump” sales. Website buyers need to be careful.
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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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