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Hi,
You will get mixed views on this but in principle (imo) the calculation should be along these lines:-
All of these factors added together:-
1. Multipal of Revenue +
2. Value of brand Name in the market +
3. Multipal of the Value of the traffic (what it costs to buy in the same traffic)+
4. Value of any database, members, etc +
5. An amount for what it is worth to the buyer plus the marketing potential
You site may be doing a small amount of turnover but may be positioned to do some major damage with the right marketing and have MAJOR potential to the buyer.
Alternatively, the potential of your site may be limited and you may already have secured as much income as can be expected with limited upside potential to the buyer.
A number of factors come into play here. It all depends on sector you are in and the market potential and how desirable the site is imo - are other sites in a similar position to you available to buy?.
Thats why you can have a site worth 400 million with strong traffic, good brand awareness but only doing 5% of the value in turnover and another worth 20 thousand thats doing 50% of the value in turnover.
Good luck anyway, seek professional help if you are serious about selling
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