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How To Successfully Value & Sell Your Website

Joel Brown (Founder of Addicted2Success.com)

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Make Money Selling Website Online

For a buyer or seller, determining the value of his or her website and online business is a very difficult task. The owner can try some calculations to figure out the value themselves.  However when you try to figure out the value it isn’t an easy task. The questions remain, how do you find the value of an existing business?

So here are some tips on how you can successfully value and sell your website.

 

Basis sales:

This method uses the sales figure as a way to value the business. There are business specific multipliers that you can use to multiply with the annual sales figure that can get you to a selling price.

 

Profit basis or cash flow:

In this method the sale price of the business can be found by how the business can generate a stream of cash flow or profit.  Projecting the revenue over 5 years or longer a business evaluator can use this figure to find the net worth of the business. Interest rates will also be a part of this because the profits are projected.

Most buyers consider the net revenue made by the website annually plus some percentage higher than this amount. At the core of the valuation process, the seller needs to determine the net revenue of the website. To arrive at the net profit of the online business requires subtracting all the expenses incurred in the course of running the business (like hosting, marketing, banners, affiliation system, etc.) from the total revenues made.

It is recommended that this calculation is based on a 12-month period. After determining the net revenue per year, the seller may select a multiplier value. For well-established websites, the value may be between 1.5x to 3x. Suppose for example a website’s annual net revenue amounts to $50,000; a buyer may multiply with 2x and give an offer of $100,000 as the buying price for the online business. In addition there are several other issues that the buyer may consider such as any risks that the website maybe facing. In order to ascertain the risks faced by a website, a number of factors are considered such as: increasing growth, stable incomes, automated system, traffic streams and quality, diversified revenue streams.

Generally speaking, there are many different ways in which online businesses can be valued. For some businesses, the assets the websites own such as a rich customer list (database) may be appealing to potential buyers who may have innovative ways of using this asset, and therefore may value the website based on these assets. Other buyers could employ a comparable sales method to value the website or they should consider the revenues of the website and identify a multiple based on strengths and weaknesses of the website.

 

Here are some of the bases when pricing them:

– Sales and Profit numbers and trends

– Traffic numbers and trends

– Age of the business

– Domain name value

– Industry sector trends and outlook

– Business growth potential

– Proprietary or non-proprietary products

– Unique content

– Inventory count (if applicable)

– Advertising methods and costs

– Personnel expertise needed to operate the business

– Seller financing

– Non-compete terms

 

For those who think that you cannot make money online or much money from selling websites, here is a list of websites that where successfully sold and for a large sum of value:

 

The Top 20 Websites That Sold

 

1. Aquantive

Bought by Microsoft for $6,333,000,000

2. Broadcast

Bought by Yahoo! for $5,700,000,000

3. Geocities

Bought by Yahoo! for $3,600,000,000

4. Youtube

Bought by Google for $1,650,000,000

5. Marketing Yahoo!

Bought by Yahoo! for $1,630,000,000

6. Bebo

Bought by AOL for $850,000,000

7. Tell Me

Bought by Microsoft for $800,000,000

8. Club Penguin

Bought by Disney for $700,000,000

9. Right Media

Bought by Yahoo! for $680,000,000

10. Real Media 24/7

Bought by WPP for $649,000,000

11. Postini

Bought by Google for $625,000,000

12. MySpace

Bought by News Corp for $580,000,000

13. Adult Friend Finder

Bought by Penthouse Media Group for $500,000,000

14. Mezi Media

Bought by ValueClick for $352,000,000

15. Zimbra

Bought by Yahoo! for $350,000,000

16. Business

Bought by R.H. Donnelley for $345,000,000

17. Blue Lithium

Bought by Yahoo! for $300,000,000

18. Audible

Bought by Amazon for $300,000,000

19. Last FM

Bought by CBS for $280,000,000

20. Tacoda

Bought by AOL for $275,000,000

 

After you have determined the value of your online business, you may want to know “how can I sell my website or online business?”

It’s important to find a reputable company that is professional.

BizBroker24, an online website broker &  E-Business Mergers & Acquisitions company is now ready to assist people who want to sell and buy website online.

You can contact BizBroker24 for a free valuation.

I am the the Founder of Addicted2Success.com and I am so grateful you're here to be part of this awesome community. I love connecting with people who have a passion for Entrepreneurship, Self Development & Achieving Success. I started this website with the intention of educating and inspiring likeminded people to always strive for success no matter what their circumstances.I'm proud to say through my podcast and through this website we have impacted over 200 million lives in the last 10 years.

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5 Hacks to Improve Your Writing Skills in English for ESL Learners

Phil Collins

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Studying in college is hard for everyone, but ESL learners arguably suffer the most. Moving to a foreign country, learning a new language, and keeping pace with the rest of the class may seem like an unbearable burden. It’s okay to feel overwhelmed, but you have to pull through and not give up. 

In moments like this, it’s always a good idea to seek help. Whether you go to WriteMyPaper to order an essay or just talk to a friend, admitting vulnerability is an important step towards improvement. In this article, you will find some tips on how to get better at essay writing, even if English is not your native language.

 

Control Your Environment

Improving your language skills is all about constant practice. Living in an English-speaking community is the first thing you should do to start your practice. It might be tempting to surround yourself with people who already speak a familiar language. However, this way, you won’t be practicing English on a daily basis.

You need to make those lessons almost intuitive in a way that you don’t have to do anything to learn the language. If you live in an English-speaking community, for example, if your roommate speaks English, you will have to practice the language, whether you want it or not.

Still, make sure you don’t take it too far. Taking care of yourself is still as important as ever. Feeling like an alien for the sake of education is not worth it. Remember to keep in touch with your friends and family, talk to them as often as necessary.

 

Practice Constantly

Practicing language is not just about doing your homework. You can make practicing English a normal part of your daily routine by watching TV, listening to music, and reading books in this language. 

Yet, this is a bit tricky. When being surrounded by white noise, people tend to learn not to notice it. You need to ensure this doesn’t happen. As you watch movies or read books, maintain your attention on what you’re doing. If you hear or see a word that you don’t understand – translate it and write it down. Be mindful and remember what you’re doing this for.

 

Writing Is The Answer

If you want to specifically learn to write, you need to do one thing, and that is to write. Continuous practice will help you understand what mistakes you often make and, in time, eliminate them. Focus on your goal, and don’t get discouraged when something’s not working. After all, even Rome wasn’t built in a day!

Get a journal and write in it daily. Pick a new topic every time and note everything you can think of. It’s also important that you write by hand, a spelling checker in your computer is tempting, but it will not help you remember how to spell words correctly. 

Besides, journaling as a habit has multiple health benefits, and it can be therapeutic. It can help you get in touch with yourself and process your emotions better.

 

Learn In a Group

It’s proven that learning in a group is more efficient due to the sense of competition. Find a bunch of like-minded people who want to study with you or join an already existing one, like a speaking club.

The benefit of such activities is that you get all these people from entirely different backgrounds who are all good at various things. This will help you exchange experiences, which is impossible if you’re alone.

Schedule regular meetings, come up with topics to discuss and activities to do. You could watch videos or movies together, or talk about common things. Having assignments like describing an event can also be beneficial for the entire group. This way, while one person speaks, the rest think about how they would say the same things differently. 

This will help you feel more confident in your skills and, consequently, speak and write better.

 

Expose Yourself

The most important thing about learning a language is not to be afraid of making mistakes. It’s inevitable; you just have to take it as a natural part of a learning process. 

A child that is learning how to walk doesn’t give up after falling once, and you shouldn’t either. It’s most likely that your friends understand that you’re just learning a language, and they won’t laugh at you for misusing a word or a few. 

Get over that fear of error and make as many mistakes as it will take. Treat it lightly, and don’t beat yourself up for it. On the other hand, try to attend as many events as you can that will expose you to the foreign language. Not only will it boost your English skills, but also improve your social confidence!

 

Wrapping Up

Learning a language is hard; there’s no arguing about that. However, it’s going to get easier with time. Take every hard thing that life throws at you and turn it into a lesson. 

Watch your favorite movies in English, converse with native speakers, and you’ll see the improvement very soon!

Remember to be patient about it. Don’t give up, and don’t beat yourself up over something that you have so little control of. Good luck!

 

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