Building a Website You Can Sell in 2013
Todd Malicoat - 8 Jan 2013
This is a summary and brief review of a relatively recent (Jan. 2013) blog post about considerations that a web developer and a business owner should have in mind when building a new website. When planning a website these factors, if heeded, may make a significant difference to the sale price achieved at some future date. Value Websites recommends that if this summary whets your appetite for more, you read Malicoat's full article. The headings below are Malicoat's.
General thoughts on website appraisal
Malicoat begins with Rule #1 – "You can’t sell potential." Take the word out of your vocabulary, he asserts. Cringe when you hear it from others. Most sites currently sell for between 12-36 months of revenue, or a 1-3x annual revenue multiple - you’ll be lucky to get a 3x multiple!
He offers a helpful Primer on valuation principles: 10 Rules for Valuation by Tim Berry
Online Business and Revenue Models
A list to consider.
A series of questions to ask of a website which are helpful when appraising a website's real value.....
Website Appraisal Tools
9 are identified and explained, including Alexa, Google Analytics and Google Adwords' Tool ....
(Potential) Website Valuation Equations
A few ways of putting a price tag on a website:
Major Variables to consider when Buying or Selling a Website
Expense considerations for any website purchase:
A series of potentially helpful links but a number are broken or dated.
Value Websites' Concluding Comments:
Terry Alve - Value Websites Limited