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WEB/DIGITAL Building to sell or to keep?

Discussion in 'Business Models, Niches, Industries' started by emorgan, Jul 24, 2007.

  1. emorgan
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    emorgan Contributor

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    I'm working on a site that I am building up to either sell, or gain sponsors/advertising for and keep. Haven't decided yet. I was wondering if anyone has had experience either way with blogs/sites. This site is one with a shelf life, but could be used again in the future.
     
  2. MJ DeMarco
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    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    I prefer to build and sell. However the key metric is the site has to have cash flow, or potential cash flow.

    So if the site generates $5K/mo in profit - its valuation might be $180K (3X Prior Year Earnings). Typical metrics in the internet space is 3-5X earnings (for small private companies).

    If there is no cash flow, you have to rely on having the domain having value, content value, SEO value, as well as the *potential* market that the site serves.

    One method is too keep the site and grow its cash flow until your target sale metric is hit -- then try to sell.

    MJ
     
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  3. emorgan
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    emorgan Contributor

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    Domain name the thing

    Thank MJ- my site is about whats going on leading up to Super Bowl XLII- so thats what I mean by shelf life. It may make money leading up to that, but once thats over, the domain is where the value maybe for any future AZ Super Bowls.

    I really hope to make some money with this, but more than that, make some more business connections around town, you know?
     
  4. MJ DeMarco
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    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Ahhhh so thats who requested to be a friend on MySpace ....

    Yes, the shelf life on that project is short!
     
  5. emorgan
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    emorgan Contributor

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    Bad experience

    Yeah- I don't have a personal My Space- sorry! I had a bad experience with that... lol
     
  6. AroundTheWorld
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    AroundTheWorld Be in the Moment Speedway Pass

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    Business with a shelf life... or what I called my old business... the sinking ship.

    The value of your business *may* continue in the future *if* another super bowl in AZ comes along... or - could it be for every superbowl?

    This is what I think...

    Sell while it still has value - though I don't know if many investors would be interested in buying something that they can see ending soon.

    First, I would put a little time into figuring out if it can last somehow - ie. roll into the next super bowl, and the next. etc.

    Then build like crazy!
     
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  7. kimberland
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    kimberland Bronze Contributor

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    I agree with Sonya.
    I'd ramp up quickly with the advertising dollars and traffic
    and then sell before the event happens.

    Before I sold though,
    I would try to direct some of the traffic into the next project
    (by placing an ad on my own site).

    : )
     

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