Re: How to value a web site?

From: Gregg Lewis <gflewis_at_flightbrief.com>
Date: Fri, 15 Jan 1999 10:43:18 -0600 (CST)

RAY TAYLOR WROTE (IN PART):
>The revenue is easy enough to establish, and is the most
>tangible of the three measures. It is far more important
>than cost or profit, because both of these things depend on
>how the site is operated, which is likely to change when the
>new owner takes over. costs and profits need to be taken
>into consideration, but both can be improved by new
>management.
>
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

All of the discussions on how to value a web site seem to be
for non-subscription based sites. How do you value a
subscription-based site? We are a very successful and
PROFITABLE (something almost unheard of in online business)
subscription-based site with thousands of aviation
customers. FlightBrief derives all of it's revenue from
monthly subscription fees of $9.95 and therefore, is are not
driven by wildly fluctuating advertising CPM rates. We have
been approached by several companies interested in
purchasing our company. It would seem in our case, more
"traditional" business validation models would be used like
X times annual revenue. Is this correct?


===================================================================
Gregg F. Lewis | E-mail: gflewis_at_flightbrief.com
President | www: www.flightbrief.com
                                 |
FlightBrief Online Service, Inc | phone: 770/590-4100
    Providing weather and flight | fax: 770/590-1195
    planning for aviation |
===================================================================


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Received on Fri Jan 15 1999 - 14:14:54 CST