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Old 09-16-2005, 03:17 PM   #6
fusionhosting
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Join Date: Mar 2005
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Quote:
Originally posted by Rivux
Thanks for the feedback fusionhosting, its interesting how you give them little value but others ive spoken to will put a value of $0.50 to $1.50 per member. I think its the same as say a dmoz listing where some people will pay $500-$700 for a dmoz listed site even if it has zero income or traffic. But others give absolutely zero extra value to a dmoz listed site.
Without knowing the specifics it's tough to exactly say how the site may be valued, and it's going to vary greatly between buyers as many have their own preference for due diligence and valuation of sites.

Personally I've bought sites between $200-$50,000 before.

I'm probably biased about mailing lists as the sites I had purchased on the top end for around $50k have included lists as high as 100,000 double opt-in subscribers but other than driving a good amount of traffic back to the site, they performed below expectations for direct advertising income.

Which is why I personally would base my valuation on a list based on it's current and past income and many of the great line items that Steve posted when performing due diligence.

Other buyers may just offer a flat fee per member, as they're figuring in what their cost of acquisition per member is, and how much revenue they can bring in per subscriber within a year or so to recoup the investment. In fact there are many individuals or companies willing to buy just your mailing list.

You also mention another great example. Valueing a site higher due to a DMOZ listing. Same goes for listings in msn, yahoo, google, and your google PR ratings. Some buyers place a higher value for an established site with things like a DMOZ listing which they believe enhances a sites SEO, and drives traffic. So even if that site has no traffic, they can build a new site on that domain or redirect traffic and extract value from that.

Personally, I don't see significant traffic from my sites listed in DMOZ, nor do I feel it significantly affects my sites' SEO vs quality backlinks on other established sites. Plus there's no guarantee that your site will not be de-listed from DMOZ either.

Overall, if I'm not buying a site primarily for it's assets, I feel that it's value will be reflected in it's revenue if it's been properly optimized by it's owner.

Edit:

Just saw your reply.

For a Career/Job category site, I would feel a higher valuation would be justified as that is a hot category and cost to acquire members or subscribers for a mailing list can be higher than other categories of websites where they're generally easier and cheaper.

Last edited by fusionhosting; 09-16-2005 at 03:29 PM.
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