Selling a Website!

jg33 · #1 (**permalink**) 12-16-2003, 05:08 PM

Hello,

Is there anyone in here who have any idea about selling and buying already exisitng website?

How a website is priced according to what?

Thank you

Joseph

christoefar · #2 (**permalink**) 12-16-2003, 05:41 PM

If you look on ebay you can find lots of websites for sale, but the only reason someone is selling a website is becaue it is not doing well, or they don't have the time to run it any more.

This is my opinion only.

elearning · #3 (**permalink**) 12-16-2003, 08:10 PM

I feel you need to look at a few things.

#1 - does the site generate any revenue? Could be from their own products, affiliate income, advertising... A simple calculation could be:

$300.00/month in sales/affiliate income x 12 months = $3,600.00

#2 - how much traffic? For example, if the site receives 25,000 visitors per year based on the world "weight loss" and this term "sells" for $0.50 on the PPC engines then potentially the purchaser is getting 25,000 x $0.50 (or $12,500) worth of visitors.

In my opinion, that site is now worth $3,600 + $12,500.

But you need to also take other things into account. What are you buying? Name only, entire site (all products, all code), only code and no products, etc.,

Is the owner willing to provide assistance for short-term? Is this built into the price or extra? Are you paying for the "goodwill" that the domain name has generated? Meaning - has the domain name become branded? For example, when you see X10 - you know we're talking about security technology products.

What area do they operate in? If in the gift industry and they have and maintain high rankings then the value of the site using sample calculations may be justified.

Are they a niche product that is doing very well, then price again may be justified.

Essentially look at a website as you would any business and apply those criteria that would fit.

Hope this helps.

Mohammed

Quote:

Originally Posted by jg33

Hello,

Is there anyone in here who have any idea about selling and buying already exisitng website?

How a website is priced according to what?

Thank you

Joseph

jg33 · #4 (**permalink**) 12-17-2003, 12:42 AM

You are right Chris. No time to run...

Mohammed nice info and good to consider...

Thank you Guys!
Joseph

fasteddie · #5 (**permalink**) 12-19-2003, 07:42 AM

The other thing to consider when looking at traffic levels is where this traffic is coming from. It would be easy to buy cheap traffic from pop-unders and low value ppc rankings in the short term to impress potential buyers which would then disappear once the sale is made.

Try and get hold of a backlog of raw log files so you can analyse what residual traffic there is, rather than rely on generated reports from the seller.

Just a thought.

f

JayDrake · #6 (**permalink**) 12-19-2003, 03:16 PM

Quote:

Originally Posted by jg33

You are right Chris. No time to run...

As I see it, not enough time is a poor reason to sell a business. The only good reason is that it isn't profitable, in which case it's a bad business to purchase. To qualify this, I must emphasize that a salary or wage for the person who spends time running the site should be factored in when determining profit. Far too many people don't count their time at all when drawing up their balance sheet and that's a terrible mistake.

jg33 · #7 (**permalink**) 12-20-2003, 12:46 AM

Jay,

You are right in your calculation and the site is non profit and we actually do not sell much on it. We only have google and some books from Amazon. We are working on a new design at the moment and we are bringing new products into place. We have the visitors but not much to sell.

It all started as a challenge for me to do it. things are done then what? I was testing my skills on the site. The same goes for SEO now they face a new challenge to get back on google and it was good that Google have some change in their algorithm. Otherwise it become boring when all of us are expert as SEO's and good to be placed on top in Google search.

I have my other business which is business development international markets. My area of expertise is about 20 countries and keeping up with that is a lot. And if the site is not making money at the moment that was not my concern. But my priority in life has changed and why to get stuck all our life in what we are doing just because it become routine, our safety nest. Is it how we see ourselves in life? Just keep doing what we know best and get stuck with it. I am taking a new direction in life. Life is a challenge but we keep falling into our own limitation...

What I do? My website maintenance, internet marketing, business development international market, my own customers, writer, public speaking, finishing my first book and getting married. I guess I needed to see what is priority for me.

I enjoyed the most being involve in this site but really I have no time at this point in my life...Life is short so why not enjoy what really matter to us. Is it everything in life about money? Am I trying to prove anything here? No...
When you become bored waking up doing the same things over and over and YOU are not happy about then it is time to make a change and even directions in life! There must be something else...

The site will be profitable with the right products of course because I do have unique niche and that niche is growing but I like to be around my niche and not just doing it through the internet. That require me to travel.

It is really I have no time any longer...

Joseph

RemodelingGuy · #8 (**permalink**) 12-20-2003, 02:49 AM

Quote:

Originally Posted by coolo_chris

If you look on ebay you can find lots of websites for sale, but the only reason someone is selling a website is becaue it is not doing well, or they don't have the time to run it any more.

This is my opinion only.

~ werd

touristips · #9 (**permalink**) 12-21-2003, 04:04 AM

Joe,
don't know anyone that would buy a non profit site for the privelege of selling books through Amazon.

You might want to establish a value for it and donate it to another We are looking for an organization to research and develop inbound links related and hope it passes mustard with IRS when you claim it as tax deductible donoation.

Other than that if domain name is catchy you might try and sell that.

7thDsites · #10 (**permalink**) 12-21-2003, 01:43 PM

A partner of mine builds sites solely for the purpose selling them on ebay. They have a great deal of potential but they are new sites and do need some work.

99% of the time however; I would not look at these sites being offered as 'established' ebusinesses but rather a fast and easy way to get a cheap site that you can take over and make stuff happen with... you'll not find a webdesigner that will build a site as cheaply as you can usually pick them up for on ebay.

I've bought a few sites there, which have been fine, they've all needed work and none have had traffic going to them, even those that supposedly were getting traffic, but I suspected from the get go that was a false claim anyway.

I guess the moral of my babble is;

If you're going to shop there for sites;

1. think of it as an easy way to get a site built for you.

2. You'll get nothing without working for it - traffic, etc...

3. These sites are built as quickly as possible and most of the time by people that have little or no seo knowledge so will need some work.