09 Jun '11, 4pm

11 Questions to Ask Before Buying a Developed Web Site:

Answer these questions before you buy a web site. The debate about how much a developed web site is worth has been rekindled in the domain name community with Rick Latona’s entrance into the web site brokering business. I interviewed web site broker David Fairley last year to get an idea of how much developed sites are selling for. Anyone considering buying or selling a site should read that article and the linked presentation for an idea of what the market is like. Generally we’re looking at 2.5x-3x trailing 12 months EBITDA for a sale price, although that can go higher if the site has good underlying factors and scale. I’d like to proffer 11 questions you should consider when buying a site, and then a couple smokescreens a seller might throw your way. 1. How much profit is the site making? The best measure here is probably EBITDA. That excludes any amortization the owner...

Full article: http://domainnamewire.com/2011/06/09/11-questions-to-ask-...

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