Essay PreviewMore ↓
Reprinted with permission of VotanWeb.com
There may be no topic more controversial or misunderstood as the website valuation, also known as a website appraisal. Although they're especially useful for website owners contemplating the sale of their websites, valuations are seldom commissioned by sellers at all--since most are convinced that nobody knows their website’s value better than they do. And while valuations can also have an enormous impact on strategic planning, they're typically overlooked there, too. Most website owners choose to pay for a formal valuation only when they absolutely must--usually when a financing or other kind of transaction requires one.
Pricey though they may be, website valuations can and should be used at key stages in any website's development. The thing to keep in mind is that when you own a private website, no one can look up its value in a newspaper. So when circumstances require that kind of information about a private website, its owner must hire someone to perform a study of its value that is logical and defensible. The determination of a website’s value will be based on an analysis of all kinds of information, such as historical profits, other financial records, the customer base, security controls, competitive details, and much more.
The results can be well worth the costs. Just consider the financial risks entrepreneurs run, for example, if they give a website to their children as part of a long-term estate-planning strategy--only to have the IRS step in years later and challenge the claimed taxable value of the gifts. The IRS will always start out from the premise that your website is worth the highest possible number. Unless you've got a good, defensible valuation to back up your claim of a lower value, you can face real difficulties.
Don't expect the IRS to accept a defense based only on the so-called valuation rules of thumb, the industry guidelines that sometimes appear in textbooks or websites. Rules of thumb are nothing more than the roughest of starting points.
How to Cite this Page
"Going to Sell Your Websites? - What are they Really Worth?." 123HelpMe.com. 26 Feb 2020
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- How to Sell A Website Reprinted with permission of VotanWeb.com It is a joyous time when you are ready to sell your website. While you will be fraught with questions and unknown variables when ultimately you decide to sell your website it can be like winning a jackpot and a big change to your life. You might have been building your web business for years, consistently working on it day after day and night after night. When it finally sells you get a (hopefully) big cash injection and move on to new projects feeling renewed and excited about your future prospects.... [tags: Sell Websites Buy Websites]
1917 words (5.5 pages)
- Sell Your Troubled Websites Reprinted with permission of VotanWeb.com You awaken one morning to the realization that the website you've poured so much time, energy and thought into; the dream that was once the preoccupation of your every waking moment has turned sour - what do you do. Market forces, changing consumer tastes, cash flow problems, or some unforeseen outside factor has brought you to the point of not being able to keep things going much longer. Do you, shut the doors and call it a day or declare bankruptcy.... [tags: Sell Websites Buy Websites]
1199 words (3.4 pages)
- DeviantART (also known as dA) is a website widely known as an online art market to artists today as a place to showcase or sell their artworks. The site made it possible for artists to upload their original artworks for the public to see and perhaps for other to purchase. The deviantART community has dramatically influenced many contemporary artists to now rely on the use of an online gallery to both display and sell their works as opposed to depending of a gallery in the offline world. deviantART has caused a shift in the way the economy revolves around the art market and art world.... [tags: technology, websites, market]
1242 words (3.5 pages)
- Quit Your Job - Buy and Sell Websites for a Living. Reprinted with permission of VotanWeb.com The stock market and real estate industry have long been populated by day traders and “flippers”, those that buy and sell in a short period of time in order to make a quick profit. In the real estate industry the life of a house flipper can be very appealing. Buy a renovator’s dream property at a discounted price, renovate and modernize it and then sell it at a few months later at a profit. This process can then be repeated over and over.... [tags: Sell Websites Buy Websites]
2454 words (7 pages)
- Points to Consider When You Buy or Sell Websites Reprinted with permission of VotanWeb.com I've worked with many website sellers and many more potential website buyers over the years. I strongly believe that the best way for an entrepreneur to successfully get into an online business, or expand what they already have, is to buy an existing profitable website. To help those who are considering buying or selling a website, I offer the following overview of what I think are the most important issues when buying or selling a website.... [tags: Sell Websites Buy Websites]
1566 words (4.5 pages)
- Advice on How to Sell Your Websites Reprinted with permission of VotanWeb.com If you are serious about selling your website then you will need to spruce up your financial statements, budgets, and business plans. Running your website as if you were preparing to sell it will improve your management practices and increase the value of your website. If you receive an offer that you can't refuse, being prepared will put you in a great position to close a deal quickly. In researching my book, “How to Sell Your Website for Top Dollar”, I interviewed over 200 entrepreneurs who had sold their websites.... [tags: Sell Websites Buy Websites]
1083 words (3.1 pages)
- Valuing a Website Before You Sell Reprinted with permission of VotanWeb.com There is probably no part of the buying process that worries a potential buyer more than overpaying for a website. While this is understandable (who wants to pay more than something is worth), it has more to do with misinformation and one's total approach to buying a website than it does to being an expert at appraisals. The truth is, value is completely subjective. After all, what one website may be worth to you is entirely different from what it is worth to the next person.... [tags: Sell Websites Buy Websites]
1092 words (3.1 pages)
- Advice Before You Sell Your Website Reprinted with permission of VotanWeb.com Only 27% of all websites that are put on the market are sold. This is a shocking statistic to most people trying to sell a website. If you follow the tips below your chances of selling dramatically increases. Have All Records Ready Before You Attempt to Sell Have these items ready before the website goes on the market to be sold: The last 3 years of federal tax returns for the website being sold, the last 3 years of financials (profit & loss statement, balance sheet), the last 3 years of monthly bank statements, etc - many parties during the selling process will need this info - serious website buyers, lenders w... [tags: Sell Websites Buy Websites]
1005 words (2.9 pages)
- Get the Highest Price When You Sell Your Existing Websites Reprinted with permission of VotanWeb.com It is very important not to be passive when selling your website. If you don't investigate potential buyers while they are investigating you, it will be impossible to get the best deal. While potential buyers are analyzing your website, you should analyze their website. You're looking for assessments of management's strengths: how the company will integrate your website into their current portfolio of websites.... [tags: Sell Websites Buy Websites]
411 words (1.2 pages)
- Pricing Websites For Sale Reprinted with permission of VotanWeb.com As a market leader in existing website sales, VontanWeb receives many questions about valuing websites. It always amazes me how some website owners come up with the value of a website being sold. No wonder many websites never sell. In many instances no consideration is given to the total picture. Will the available cash flow of the website be able to pay the debt of a loan to purchase the website. Will the website as priced be attractive to financing sources.... [tags: Sell Websites Buy Websites]
980 words (2.8 pages)
Like Uncle Sam, bankers and investors are generally skeptical about rules of thumb. You can expect both groups to require a valuation--usually to be performed by appraisers of their choice--whenever a website seeks either a significant increase in credit or a new infusion of equity capital. A banker is likely to waive the valuation requirement only when a website’s loan is fully collateralized by personal assets.