Welcome to Value on the Web
About a year ago I began buying and selling websites. I noticed that people tended to use common multiples like 10-12x monthly earnings to value websites, but ultimately the value in something is the discounted value of all future cash flows, and website monthly cash flows are easy to manipulate. I got burned a few times, and I got some great deals that made me decent profits. But overall, I realized that the 10-12x number was wrong.
I began keeping a spreadsheet of websites that sold at Sitepoint. I tracked pagerank, monthly visitors, monthly revenue, and final sales price. Eventually, I got curious and started running regression analysis on the data. I found some interesting patterns, and found it useful to analyze outliers to see why they broke the pattern. I discovered ways to add value to my own sites. It was very very useful. So useful that I built a website to analyze it all. I don’t know if anyone else is as into this as I am, but I figured I might as well share what I’ve created with the world and maybe make a little money from all the work I’ve done tracking this stuff. The final result is Value On The Web. I hope you like it.
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I check stuff like that all the time, but never put it in a spreadsheet *yet*
Can’t wait to read more of the blog!