Re:Ask HN: How to do proper valuation of a web appliation?
by anujkk on Monday March 21, 2011 @02:29AM
(#2348723)
Let me clarify my question through an example site everyone here knows - threewords.me. The site became popular and got sold even though it had zero revenue. While selling such sites, how to determine a proper selling price? What affects the valuation of such sites - page views, number of active users, niche concept, it's usefulness for the target buyer etc?
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Re:Ask HN: How to do proper valuation of a web appliation?
by sagacity on Monday March 21, 2011 @03:19AM
(#2348812)
>What affects the valuation of such sites - page views, number of active users, niche concept,
In many cases, factors listed below may also be taken into account:
* Sources of organic (free) traffic, and how diversified/stable they are (e.g. if 90% of your organic traffic comes via Google, not much good)
* Quantity and quality of (natural) inbound links pointing to your site
* Average conversion rate (even if you're not selling anything, there would probably be a 'most preferred action' that you want from the users - how many take this?)
* Even bookmarking rate can be used a valuation factor