Here is a question to toss around and get some thoughts of I'm running more and more free membership sites, my most recent one is a free video membership site, well its not recent but the membership system is.
My question is what factors do you all think you can use to determine approx how much the site is worth or how much it could be worth based upon the monthly growth rate.
We all know the following factors can effect price.
Traffic
Monthly Sales Volume
Monthly Growth Rate
Backlinks (I've actually found that this isn't a big factor but rather a small one)
Brandability
Return Visitors
So what I usually do when selling a site is just see how much traffic it has and how much money it makes each month, plus how many pages are indexed, from there I look for similar sites that are being sold and determine how much I should charge for mine.
But this time its a bit different because I don't plan to sell anytime soon I plan to grow it really big (Lots of active members) then try to flip it but been trying to think if there is a good way to try and judge the approx amount each user is worth.
I'm thinking of taking the total users and the total monthly sales and then doing the math will give me an average lifetime value of my users.
I guess this is more of a thread I'm writing to help me think more for the long term but also curious to see how others would determine how much to sell a free membership site which profits from affiliate programs, ad space, ect...
Basically how much do you all think a site like LiveVideo and Dailymotion is worth?
We all know YouTube sold for 1.6 Billion but that was because they were the biggest at the time, I don't think similar sites will fetch those numbers anymore.
My question is what factors do you all think you can use to determine approx how much the site is worth or how much it could be worth based upon the monthly growth rate.
We all know the following factors can effect price.
Traffic
Monthly Sales Volume
Monthly Growth Rate
Backlinks (I've actually found that this isn't a big factor but rather a small one)
Brandability
Return Visitors
So what I usually do when selling a site is just see how much traffic it has and how much money it makes each month, plus how many pages are indexed, from there I look for similar sites that are being sold and determine how much I should charge for mine.
But this time its a bit different because I don't plan to sell anytime soon I plan to grow it really big (Lots of active members) then try to flip it but been trying to think if there is a good way to try and judge the approx amount each user is worth.
I'm thinking of taking the total users and the total monthly sales and then doing the math will give me an average lifetime value of my users.
I guess this is more of a thread I'm writing to help me think more for the long term but also curious to see how others would determine how much to sell a free membership site which profits from affiliate programs, ad space, ect...
Basically how much do you all think a site like LiveVideo and Dailymotion is worth?
We all know YouTube sold for 1.6 Billion but that was because they were the biggest at the time, I don't think similar sites will fetch those numbers anymore.
