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Questions to ask when buying websites

Posted on February 26, 2007 by midascode

I often get people e-mailing me to ask how much their website is worth. So I have compiled a list of questions I will need answers to before I give you a site value.

If you cannot provide any of this info then don’t expect to get an accurate appraisal.

– What is your current revenue?
– What % of this is profit?
– Do you have any ongoing liabilities?
– What methods do you use for revenue? (revenue model)
– What is your position in the inustry?
– What is the value of the industry?
– How many unique keywords do you rank for?
– Do you use PPC? and what is the CPC average?
– How many major competitors do you have?
– What is your Alexa rank?
– Are you in a niche with Alexa bias? (e.g webmasters, SEO etc)
– Do you get any traffic from type ins?
– What are the current traffic levels?
– Do you have an estimated value per visitor? (uniques per month divided by monthly profit)
– Have you built a brand (reputation)?
– What are you conversion figures?
– How hard would it be for a competitor to re-create the site?
– Do you have a members base? (opt-in, registered members etc)

Please try and answer as many of these as possible before contacting Midascode.

Many thanks,

Dean

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