Category Archives: Domains

How to value a website

At some point most of us wanted to sell our websites. The perspective of selling a virtual item for real dollars is very attractive, but most developers get disappointed when facing the website market.

Before Adsense, the perspective was even worse, because not even high traffic websites achieved revenue. Thanks to Adsense, the advertisement serving program run by Google, things have gone better for webmasters, who can now collect some money. This advertisement serving was Google’s and Yahoo ‘s great success.

So, it is all about signing up to Adsense, place a little Javascript on the pages, and start making money. For example, PodcastDirectory.com gets 35.000 dollars per month for Adsense, and seatguru.com gets 15.000. Right, the first one has a million hits per month, and the second, 700.000. Humble websites with 400 visits a day (which are not that easy to obtain) can collect 40 dollars per month, luckily and with tail wind…

There is also a theme-related matter. A website in an “expensive“ field, such as medical malpractice, will get more valuable clicks than a website with poor advertisement opportunities, such as a personal blog.. If we multiply the monthly revenue by 18, we will get the approximate value of each website, following a pretty conventional valuation model.

Let’s suppose our site has no Adsense, either because we do not want to damage our image, because the revenue is not enough, or other reasons. Thus, we have a highly visited but profit-less site.¿How do we value it?

Websiteoutlook.com is an online free tool for website valuations. According to it:

PodcastDirectory.com is worth $60580
seatguru.com is worth $70200

This is less than the value coming from the real revenue, but is still pretty good for a website that pops up a number live and free, without asking for anything but the domain name.

See these SEO related sites:

seochat.com is worth $340,000
seobook.com is worth $342.000
webuildpages.com is worth $37,529
seoadministrator.com is worth $23,000
domaingrower.com (this site) is worth $2,379

If I was to valuate a website, I would ask lots of things. Firstly, how the website makes money, its development and maintenance cost, etc. And after offering my valuation to the clients, I would listen to their opinion, and, maybe, basing on it I would adjust my value algorithm.

Analyzing some small and medium size sites, own and from clients, I find that the automatic valuation comes quite close to the real asking price for the developed sites. The predicted values for very large sites (google, yahoo, microsoft, cnn, wired) are not related to real market values, as expected, because many other considerations apply, besides some site metrics.

So, what is this website valuation model based on? In the linked spreadsheet there are some details, as indexed pages, Alexa ranking, backlinks, and the relation between these values.

Website valuation data.xls

Another factor, not taken into account here, is web positioning. Websites positioned for SEO, that allows offering services, should have an increased value. To know, a positioning index should be established for each site for a group of keywords, as the one I suggest elsewhere, and multiply it by an activity-specific rate.

The site itself, WebsiteOutlook.com, has an Alexa rank of 11.000, 370.000 indexed pages, and, according to itself, it’s worth $217.000. The many indexed pages correspond to every search saved in a new page. They double as cache and indexed content.

Having figuring out their algorithm, we should be able to duplicate their valuable site, improve it, and also calculate the increase in value of any client website enhanced by SEO (Google ranking) and Domain Development services. Is is also a nice tool to establish link value, predict traffic and check the value of promotion campaigns.

How Idea Marketplaces work

Ideas are hard to define, and more to buy and sell, so an Idea Marketplace is a tough challenge.
The globalized world is extremely open to idea flow, to dismay of a few dictatorial governments. But flow is not necessarily trade, and quantity does not imply quality. A good idea marketplace should have a way to tell the golden ideas from the sand, and deliver them to those who can appreciate them and turn them into profit.

A well-deviced but unsuccessful approach to the Idea Market

Around 2000 there was Ideaexchange.com, where ideas could be bought and sold. The ideas had a short public description, and a longer hidden explanation. If you paid the price, you would access the whole thing. Idea authors charged for their complete ideas and the website collected a percentage.  Buyers could call for an idea on a certain topic and also comment on the ideas they bought for others to join or beware.

To my deception the website did not last. I do not know why, because in my opinion it was a hell of an idea. Possible failure explanations: Ideaexchange.com did not have a mechanism to convert ideas into projects. The fact that idea posters had to pay a small fee beforehand probably prevented them to reach critical mass. Also, the ideas were too wide (proposals together with jokes, gossip and varied information).

The word “idea” has many meanings, and the marketplaces should limit itselves to measurable ideas, and to ideas that can have any useful follow-up or consequence.

Idea Futures

There is also the concept of Idea Futures, which implies prediction power about the truth of an idea. A nice website called Ideosphere tries to predict events using the reputation of the predictors. Those who earn points predicting accurately are more credible at predicting new issues. The site covers future facts or hidden facts, like science issues.

So, this site deals about Future and Hidden Facts, not just “ideas”. Predictions often deal with the stock market or sports results, and those activities are heavily regulated, which limits this peculiar subset of the idea marketplaces.

Got an idea? We will invest on it!

There are several inventor-investor matching sites, where business ideas can develop into projects. However, most of them are inefficient, with worthless ideas and false investors. Worthless ideas rank from perpetual movement to cold fusion in the kitchen, with better mousetraps in the middle. False investors include those who require a “fee” to analyze the idea and then disappear, and those who are willing to invest up to 10 dollars in your idea, plus those who demand the inventor to fill a 100 page form before anything, with no assurance that even the title will be read.

I have seen them all and I recognize that good matching requires many right properties on each part: financial, geographical, language, age. Also, like in romantic matching, there are many hard-to-define human qualities.

Regulating the entry of both parts (good inventors – real investors) would be an assurance of quality for these idea marketplaces, but that requires time and money. It is hard to find someone able to predict which idea will fly and which will not take off. Who could that be? An academic? A successful businessman? A psychic? Probably none of them. Most likely, a committee with the three of them.

The Web 2.0 is about filtering trash

The Web 1.0 had many data covering the valuable information. Search engines still post: “Results 1 – 100 of about 7,190,000 pages”. 95% of all email is spam.

The news aggregator systems like Digg.com, Reddit.com and Meneame.net (Spanish) became recently very successful as typical Web 2.0 mechanisms. They use qualified voting, social networks and automated quality rating for entries, usually news.

You probably are reading this article because you found it on Digg.com or similar aggregator.

Aggregators as idea marketplaces

Are News Aggregators feasible idea marketplaces? Can you post an idea and see if it catches on? I assume you can .

Business ideas can be filtered by the News Aggregator public and that could be a predictor of its future acceptance by the general public. If the idea is accepted by the masses, savvy investors will be able to catch them.

Political ideas can also have a similar mechanism. Anyone could launch a proposal and the politicians fishing for good ideas could profit from it. Conversely, someone who reaches Top-Digg user status (good Karma in the pligg-like systems) can become a good real-life politician.

Empty domain names are like business proposals, and are also subject to Aggregator treatment. Such Aggregator could be the ideal automated domain valuation system.

Aggregators could be used for painters to test their sketches, for advertisers to test their logos or catchy phrases, for models-to-be to expose their beauties, or for conferences looking for appealing speakers. The Barcamp geeky Web 2.0 conferences use such a system.

There are a few necessary conditions for an aggregator to be successful: good coding, critical mass and some of the features described above in IdeaExchange and Ideosphere.

Finally, I started one aggregator for business ideas at www.business-ideas.com.ar and one for local political ideas at www.ideaspoliticas.com.ar . I am ready to start others by request.

Comprehensive Domain Development Service

We are launching a complete service for Domain Development. It is a standard Web Design and Web Promotion campaign, including:

  • Domain
  • Hosting
  • Design
  • Optimized WordPress blog with all the SEO plugins
  • 20 weekly postings with original content (synonymized by me, from the web)
  • Submission to search engines and directories
  • Guarranteed Top Ten position for some (uncommon) keyword or money back

You will see it advertised as:

INVEST IN VIRTUAL REAL ESTATE, THE 2008 GOLD RUSHSECURE A TOP RANKING IN THE SEARCH ENGINES

DOMAINS ARE MORE VALUABLE AS THEY ARE LONGER ALIVE

It can be used for:

  • Personal Marketing –> get a blog to promote yourself as an employee, consultant, politician or whatever.
  • Idea Marketing
  • Regional Real Estate Marketing –> for Real Estate companies that already have an institutional website, but desire to strengthen their position in a specific region.
  • Small Business Marketing
  • Individual Product Marketing –> for large companies that already have an institutional website, but desire to build traffic on a single product.
  • Niche Marketing

By the way, look in Google for Domain Development Service , and this DomainGrower.com site is 1st among 12,400,000.

Prices can divided into 3 ranges:

  • Standard 300-400 U$D
  • Intense 600-800
  • Full Effort 1900-2500

Ask us about it!

Domain development service

Grow your Domains with us

We create website content, either writing or programming.

Most experts advice against buying new domains to immediately conduct business. Buying an existing domain, with presence in the Search Engines (SE), link popularity (PageRank) saves valuable time for your online business. For that reason, the domain market moves millions every day. Get your domain as a valuable investment and watch it grow with our original contents and money-making tools.

Contact us for a standard or custom proposal.