Pricing Websites For Sale :: Sell Websites Buy Websites

Pricing Websites For Sale Reprinted with permission of VotanWeb.comAs a marketplace leader in existing website sales, VontanWeb receives many questions about valuing websites. It always amazes me how many website owners come up with the value of a website being sold. No enjoy many websites never sell. In many instances no consideration is prone to the union picture. Will the avail able cash flow of the website be able to pay the debt of a loan to purchase the website? Will the website as put downd be attractive to financing sources?I have seen many professional website valuations where the price just doesnt make sense and sellers wonder why buyers atomic number 18 not standing in class to purchase their website.Market nearThere is a solution that is grounded in the fundamentals of economics, and time tried and true in the marketplace, where the influences of supply and aim ultimately determine where a website belongs on the price scale. One economist explains this mar ket approach by examine a business to a machine which has the purpose of making funds The more money it makes, the more it is worth. This is why there is greater demand for very small and profitable websites with few hard assets, than there is for large, habitual and high maintenance websites that generate a huge cash flow, only when cant make a living for its owner. Adjusted meshwork IncomeThe first category of information involve is called adjusted net income, and is the total amount of cash produced by the money machine. Of course, this figure allows the website profits and the owners salary. Its important to remember that the adjusted net income should to a fault include all of the many cash-related benefits which are enjoyed by the website owners. Those benefits may include the use of a car owned by the website, the website-paid premiums for health, life and political machine insurance, website paid memberships to country clubs and spas, travel and entertainment expense s that are actually holiday and taking the wife out to eat expenses. Dont get out expenses for high speed internet and cable TV that are needed for the website but also provide entertainment for the whole family. There are many, many other hidden personal expenditures in any regular website business, subscriptions to magazines, gifts for your wife and girlfriend and similar business expense categories. Interest expense should also be added to adjusted net income, along with accounting entriessuch(prenominal) as depreciation and amortizationthat can divert money to the owners pocket so that it never appears on the bottom line of the P & L.