There are multiple steps in acquiring a new web property. Besides performing the business transaction to obtain the domain name and website resources, existing databases, code, notes and actual subscriber base - first you have to determine the value of the property.
Not unlike a Home Appraisal, there are many aspects of the property that need to be examined and measured before an accurate value can be assigned.
Assessing Traffic
One of the first things you will hear anyone assessing the value of a site, whether they are looking to buy or sell, are bloated traffic numbers. In an effort to sell a site, many owners will fluff their traffic counts or do a marketing blast before assessments can begin - falsifying real numbers.
Analyzing these numbers however are not a five minute process. Although you can get a good feel for the sincerity of the owner, the assessor needs to examine more than just traffic as a whole, but also where the traffic originated, frequency of the traffic, and how unique the traffic actually is.
Subscriber Base
A subscriber base is a crucial part of any acquisition. It can represent a certain guarantee of client/visitor presence. Subscriber bases are generally the list of site users who have login information, or other personal data stored with the site.
Generally you are talking about a laundry list of email addresses that can be marketed to like-minded advertisers who would like to tap into your supply of users. This is always done under a controlled environment and email campaigns are run through the site owner/domain - and never sold as a whole to an independent investor.
Checking the previous exposure to Subscriber Base tainting by a greedy site owner is always a smart idea. Violating your subscriber's privacy is a sure way to lose your reputation.
Curb Appeal
Let's face it - no matter how valid the content is on a site, if it is not attractive to look at, no one will stay long enough to give it a read.
One of the first investments generally made when re-engineering a site is the design. An expensive design that attracts 'customers' and keeps them there, is ten times more valuable than a site with a ton of traffic and poor design and structure. The property must be easy to peruse for a new visitor, with navigation and critical information, intrinsic and natural to find. Once you have a site that forces the traffic to think about where they should go next - nine times out of ten, they choose to go, away.
The Value
Just remember one thing when it comes to assessing value: there is no value. Well what are we in business for then?
The only thing you are able to calculate is perceived or potential value. After weighing all of the factors and analytics (these are only a sample) you can get a good approximation of potential value of your web property. To accurately evaluate it, takes sever days and a boat load of numbers. But its worth it, to find the ones that are worth the time and investment to make them shine and help de-clutter this Internet.
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