Buying a preexisting domain/ website

[neverfastenough]

Hey guys,

I'm thinking about possibly buying a domain that already has content (it's a news blog). What tools/ software do you use to evaluate the worth of the domain itself?

Besides the obvious UV #s and pageviews, what other metrics should I pay attention to? Tracking inbound and outbound links? (What's the best way to do this?)

Any help is greatly appreciated.

 

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[LightHouse]

Same as any other business, I think websites are valued at 3-12 months EBITA. I would look at the quality of inbound links, the traffic sources, SERPS positions, revenues, and if its content based, the subscriber base.

 

[Gymjunkie]

I heard the price of a site is it's monthly revenue multiplied by 6 (income that blog would make in half a year). Still, definitely pay attention to those things Lighthouse mentioned when evaluating it.

 

[MJ DeMarco]

Eyeballs, monthly revenue, rankings, inbound links, content (how many pages?), database (is it proprietary or just public domain?) ... the value is very subjective.

 

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[mtnman]

Micro trends, potential, and your skill set to improve the concept. + all the above ^^^^

Example- you might find a Caribbean islands site that you could improve UE, add value streams, and so on where I might not be able to. Thus, I would value that purchase differently.... pay attention to this, as everyone's capabilities change their opinion on value.

 

[Moneymaka]

If you're getting the domain name with it, be sure to check out its pagerank and age.

 

[LightHouse]

Micro trends, potential, and your skill set to improve the concept. + all the above ^^^^

Example- you might find a Caribbean islands site that you could improve UE, add value streams, and so on where I might not be able to. Thus, I would value that purchase differently.... pay attention to this, as everyone's capabilities change their opinion on value.

Wouldn't this be N/A as the purpose would be to get it at the lowest possible price. Unless you are talking about the consideration of value to a person and not necessarily the purchase price.

 

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[mtnman]

Wouldn't this be N/A as the purpose would be to get it at the lowest possible price. Unless you are talking about the consideration of value to a person and not necessarily the purchase price.

Yep. Should have kept my mouth shut, as he didn't mention what he wanted to "do" with it just how to valuate.

 

[LightHouse]

Yep. Should have kept my mouth shut, as he didn't mention what he wanted to "do" with it just how to valuate.

Nah, still good info though as far as the potential it could have in his hands, but validating a price you want to pull in the real numbers.

 

[neverfastenough]

Same as any other business, I think websites are valued at 3-12 months EBITA. I would look at the quality of inbound links, the traffic sources, SERPS positions, revenues, and if its content based, the subscriber base.

The site hasn't been monetized at all. Basically, it's a news blog about startups. He started it back in 2007 and there's a lot of content from the 1st year and a half, but recently there's been maybe 2 posts in 6 months. From some research, it looks as though the owner went back to school to get his PhD, so the site has waned.

My plan isn't really to optimize it and make money passively via ads. I have unique access to early-stage startups, so I'm looking to form some larger partnerships rather than doing affiliate stuff or display ads.

 

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[neverfastenough]

It's pagerank is 5/10 and it looks as though google has indexed 1,120 pages of it. Domain is 3 years old. 1000 inbound links. AlexaRank is 1,500,000 +

Here's a screenshot of the UV from Compete.com (which I know isn't 100% accurate)

 

[neverfastenough]

Thanks for all your help guys. I'm really just trying to figure out the range of what I should offer him. In cases like this (where a seller hasn't actually listed it for sale), I always like to make the 1st offer.

 

[Gymjunkie]

Might also check out sitepoint.com and see what gets offered for similar blogs/sites too

Cheers

 

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[Moneymaka]

Pagerank is good, domain's age is good and i think the amount of inbound links is decent.

But the Alexa rank is 1,500,000 + ? So that means the website is getting less than 20 visitors a day?

 

[LightHouse]

The site hasn't been monetized at all. Basically, it's a news blog about startups. He started it back in 2007 and there's a lot of content from the 1st year and a half, but recently there's been maybe 2 posts in 6 months. From some research, it looks as though the owner went back to school to get his PhD, so the site has waned.

My plan isn't really to optimize it and make money passively via ads. I have unique access to early-stage startups, so I'm looking to form some larger partnerships rather than doing affiliate stuff or display ads.

Gotcha, I would expect to pay at least a few thousand dollars if not xx, xxx. Depending on the content and how good it is.

Pagerank is good, domain's age is good and i think the amount of inbound links is decent.

But the Alexa rank is 1,500,000 + ? So that means the website is getting less than 20 visitors a day?

Alexa is more that just raw visitors, so at 1.5 mil it could be around 100 as well. thats why no one follows alexa very close because it varies so widly from site to site.

 

[peerbusiness]

According to our research, internet businesses are selling for about .34 gross revenue. Honestly, I wouldn't buy a website on content or any other non financial factor. Page ranks, Alexa ranks, etc. are virtually useless. They sound good but there are just to many bad websites out there to buy one on anything other than a percentage of revenue. This isn't the late 90's when websites were bought valuation metrics that didn't involve financials.

Yes, some big websites still get bought on future potential. But small websites that are still like this one should not get bought on anything other than financials.

To illustrate the point: If the website did $10,000 in revenue last year, a reasonable asking price might be $3,500.

At the end of the day, however, the website is worth what a reasonable and rational buyer will pay to a reasonable and rational seller. The hard part is having both parties be reasonable and rational.

About Us:
Peer Business Group represents buyers in buying small businesses with annual revenues between $500,000 and $10,000,000. For more information, goto peerbusinessgroup.com

 

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[sam40]

copperband is a website which can guide you about buying or transferring a domain

 

[mtnman]

My plan isn't really to optimize it and make money passively via ads. I have unique access to early-stage startups, so I'm looking to form some larger partnerships rather than doing affiliate stuff or display ads.

This was my point exactly from my first reply... before mr. slaphappy shut me down. *ducks around corner*

First, really plan your intent out, and as you modify it, your valuation will change. Doing it on paper might allow you to see other opportunities you didn't think of before your executable actions have been morphed a couple times. (cheaper sites or different direction, often many other solutions)

And second, I don't know what the hell post #16 ^^^ is talking about. :fryingpan:

 

[LightHouse]

This was my point exactly from my first reply... before mr. slaphappy shut me down. *ducks around corner*

Don't try to turn that shit around now! hahaha

 

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