INTRODUCTION
Who This Book Is For
What Will You Learn From This Book
What this Book is Not
 
PART I – ONLINE ADVERTISING ARBITRAGE: PLAYING BOTH SIDES OF THE ONLINE MARKETING MARKET TO MAXIMIZE PROFIT & WEBSITE VALUE
 
Market Basics
Basic Market Components
Supply
Demand
Price, Bids, Asks
Elasticity
The Online Advertising Market
The Product
Pricing
Demand
Supply
What exactly is Arbitrage?
Online Advertising and Arbitrage - The "Click Thru Value Chain" and Commoditizing the Market
Development, Traffic, and Hedging Your Cash Flow
The Two Sides of the Internet Marketing Market
Bringing Money In: Matching Revenue and Expense Streams
Where the Advertising Budget Should be Spent: The Law of Diminishing Returns
Major PPC Programs
Major Affiliate Programs
Major Contextual Ad Programs
 
PART II: Valuing a Website: What is Your Site Worth?
 
Introduction to Professional Valuation
The Headaches
The Foundation
Diving In: Understanding Present Value
Earnings Risk and the Discount Rate
Discounting a Stream of Future Cash Flows
Website Valuation Using the Discounted Cash Flow Model
Historical Growth: Geometric Mean vs. Average
Terminal Value
Relevant Cash Flows
Simple Model – Discounted Cash Flow Website Valuation
Less Simple Model – Discounted Cash Flow Website Valuation
Valuation Analysis Line-by-Line
Summary of Discounted Cash flow Analysis for Website Valuation
Other Website Valuation Analysis Models
Market Value Approach to Website Valuation
Summarizing Website Valuation
A Note on Using Metric Multiple Website Valuation Models
About the Author
 
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INTRODUCTION


Who This Knowledge Is For

This is a semi-technical book about a rather technical topic: how successful websites build positive cash flows through advertising arbitrage and how the value of those websites is established. Specific website valuations will be learned in detail. How to value a website will be learned in detail with many examples for each topic. It is written with the non-technical person in mind with plenty of discussion around each topic and basic examples to get the points across. The topics are a mix of practical and theoretical business analysis within the context of the internet world. Many of the teachings are simplified versions of college-level business finance courses applied to the development, strategy, and valuation of websites and website-based businesses. However, the topics are not simplified enough to make them impractical. The methods discussed are “real-world” in nature and many of the techniques are used in the business world today by investment banks and financial analysts.

The reader does not need to have a business school degree to grasp and learn from the contents of this book. The reader does not need to have previous website valuation experience. Some basic math skills and a general idea of how to make money in the business world would be helpful. Get it Now!

What You Will Learn From This Information

The writing is aimed at establishing a solid foundation for how websites make money and create value through advertising and how to price a website. The concept of advertising arbitrage is discussed in detail to build a framework of thinking and analysis skills that can be used to build new successful money-making websites as well as improve the cash flows of existing websites. The basis for the advertising arbitrage section is to apply the financial basics of a real-world commodity market strategy to the online adverting market. It is a fresh approach to the Internet business world and aimed at providing the reader with a strategic view of the online advertising market and how to price or value a website.

Why do websites get involved in buying and selling advertising? To create value. Maybe that value is used simply to keep the website running, or more than likely, the owner is looking to increase that value as much as possible. In either case, a solid method of establishing the value of a website is critical to the owner’s success. The website valuation section of this book discusses in detail professional valuation methods applied specifically to websites and website business. The skills learned can be used to value websites for the purpose of buying, selling, or measuring the success of a given website.

The teachings in this book can be considered to be choice picks from various college business courses aimed at combining business finance and analytics with the website development and marketing world.

What the Information is Not

This is not a “get rich quick” book. The ideas presented within were developed and practiced over several years and are intended to be a true business methods and processes. Yes, one can make money by properly implementing the plan but it will not come over night. As with any real business, it will take dedication, smart thinking, and good old fashion hard work.

Get started now by purchasing this book and instantly downloading it with the FREE excel spreadsheet to help with all of the calculations! Click here.

NEW: Website Valuation Only version is now available for experienced internet marketers looking to learn professional website valuation techniques!

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