I recently published an article on how buying a business or selling part of a business can add significant value to your business. Click Here for that artcle and special report. Buying or Selling an Internet Business or Domain Names warrants separate information since in most instances the basis for valuation are different.
Here are the primary considerations for valuing an Internet Business and domain names:
Internet Business Valuation
The difference between an Internet Business and a stand alone Domain Name is that one is generating traffic and possibly revenue and profits and the other is not.
Internet Business Valuation is similar to a traditional business valuation. Consideration is given to physical asset value, customer base information, trends in revenue and profits. The primary goodwill asset is the domain name and active customer base. Valuation specialists are numersous. However, many have never operated their own internet business and many have minimal business experience. I started an internet service provider busiess in 1995. I have extensive business experience on line and off line. Normally I can offer you an idea of valuation fairly quickly then you can decide if you would like my assistance in due dilligence and negotiating a deal.
Domain Name Valuation
Admittedly valuing a domain name can be challenging when there is no business attached to it. However, there are precidents. For example a low number of letters attached to a dot com extension are generally very valuable. I have several of these on the market at Buy or Sell A Business. Domains associated with hot markets and topics command a higher prices. These domains have highly searched keywords in their names.
If anyone gives you a definitive statement as to value, unless they are wiring you the cash in connection with a statement you find favorable, I advise exiting that converstation very fast. Many brokers are interested in the listing and then will come back and tell you the market has changed and say you will have to accept a lower price. Not all are that way since a quality broker will be working to get you the highest price if their fee is based as a percentage of the selling price. I am not a broker. I provide my site as an painless way to list your domains and if there is deal as a result of that listing, a very reasonalbe referral fee can be paid. I also do not restrict you from listing your domain elsewhere – your domain is not parked on my server.
Sending all my readers the energy of wellness, peace and abundance
Steve Pohlit, www.StevePohlit.com
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Steve is the President of International Business Consulting Resources. His firm specializes in guiding companies to rapid increases in revenue and profits with a sustainable growth rate. Don’t miss my FREE Report: How To Make More Money With Your Business Now and Long Term I am building my practice and welcome new client inquiries. Call me for a fee consultation at 727-587-7871
This report may be freely distributed without restrictions with the original content including this resource box remaining unchanged. Author: Steve Pohlit, Business Consulting Services, Executive Coaching, please visit www.stevepohlit.com