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Old 09-16-2005, 09:15 PM   #8
I am a Contributing Geek. Are You?
Rivux's Avatar
Join Date: Mar 2004
Location: Ontario
Posts: 293

After reading your post several times Steve, it became clear to me how much the legitimacy of a member makes up the value you assign to that member and the amount of work you put into researching a site. As an aside, I think its unfortunate that we have to spend so much time making sure we aren't being cheated when buying websites, I agree with all your points though, its important to do your homework.

If we set aside legitimacy for a moment and assume the site is well known and has a good reputation within the industry. What other factors do you look at when acquiring a site with a member base? Do you request (or prefer) sites that can provide demographic information either in general or for each user? Is this something that adds value to you?

For career sites its important to look at resumes and jobs posted since having a member is useless unless the actually post their resume or a job. But that is industry specific and I am interested in some comments from people in what kind of general information they look for when buying a member based site. How does activity and freshness of the database factor into your value? With a forum for example, how much more is someone who posts 10 times a week worth compared to someone who posts twice a week? Do you guys do this kind of precise member value calculations when purchasing a site, or supply it when selling a site?

Edit: Thought I would add why Ive been thinking about this topic to maybe give it some context. A company that I do consulting work for recently acquired a competitor. A good portion of my work prior to the sale was coming up with a value for the company, and though Ive done this process on a number of occasions with different companies I am always looking for new ways to view and value what a member is worth. Though revenue/costs etc are a big part of a sale price, I leave most of that up to the accountants to worry about . I prefer to focus on more of the intangible web related items and trying to find the best way to define and value those is what I get the most enjoyment out of (yes im a geek lol)

Last edited by Rivux; 09-16-2005 at 09:48 PM.
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