www.elitetrader.com is worth...

Quote from EdgeHunter:

I think that may be off...

If ET has 10 Ads paying 1K an AD a month which is $10K a month which is $120K a year X 10 years = 1.2 million in revenues... then for someone to purchase the site i think they would have to pay at least 1.5 million to 2 million due to projected profits...

that could be a rough guide

And i think Baron has more AD revenue than that...


<img src="http://www.enflow.com/p.gif">
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I kind of question TEN years of gross revenues as a valuation. But, if you're interested in buying Bright Trading, please let me know, we can certainly use that as a valuation number, LOL. And to think we thought Schwab paid too much for CyberTrader (they did, $400Million or so) but nothing like 10 years of gross revenues, LOL.

All the best,

Don :p
 
Quote from Don Bright:

I kind of question TEN years of gross revenues as a valuation.
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Correct. For content sites they usually use 5-6 years. Here is a much better evaluation site, glurk.com. After putting in as much info as I could and guessing a 15K monthly income:

elitetrader.com
Domain Length:11
Word Count:2
Registered Trademark:Yes
Google Page Rank:4
Alexa Traffic Rank:19,000
Incoming Links:371
Monthly Uniques:50000
Monthly Pages:100000
Age:10 yrs
Listed in Yahoo Directory:YesTop 10 Search Results:Yes
Monthly Income:$15,000
Sources of Income:1
Competitors:<5


Based on the these values and a carefully calibrated equation, we think that your website is worth:

$1,352,400
 
Quote from Don Bright:

LOL, I wouldn't put too much credence in this valuation site. They're trying to sell their services I think. I've been offered way over a $million for stocktrading.com and they show $1100. Cute marketing idea however.
Don
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Don, stocktrades.com went for about 25,000 (minus commissions) Are you sure you were "offered way over" a million dollars? Or is this a little stretch of the truth..


http://www.youtube.com/watch?v=_PQ8e4972lE
 
Quote from Pekelo:

Correct. For content sites they usually use 5-6 years. Here is a much better evaluation site, glurk.com. After putting in as much info as I could and guessing a 15K monthly income:

elitetrader.com
Domain Length:11
Word Count:2
Registered Trademark:Yes
Google Page Rank:4
Alexa Traffic Rank:19,000
Incoming Links:371
Monthly Uniques:50000
Monthly Pages:100000
Age:10 yrs
Listed in Yahoo Directory:YesTop 10 Search Results:Yes
Monthly Income:$15,000
Sources of Income:1
Competitors:<5


Based on the these values and a carefully calibrated equation, we think that your website is worth:

$1,352,400
More...

Good analysis.

The only thing that matters for a place like this...
Is traffic... and ad-clicks generated by that traffic.

The business model here is to maximize traffic at any cost...
Totally irregardless of quality.

Assuming your traffic stats are OK...
I would put the monthly income higher at 25-30K...
But penalize ET for "low quality" traffic...
At least 20% of it from the developing world... which really doesn't count...
And a lot of just plain unsophisticated traffic.

So lower traffic/clicks...
But higher monthly income...
It's a wash:

Estimated value: $1,500,000 and zero upside

And that's after 10 years... the #1 site by far.
Making money off web traffic is harder than it seems.

My little trading business is worth 2 or 3 times ET...
With 10 times the upside.
 
Quote from HoundDogOne:

Good analysis.

The only thing that matters for a place like this...
Is traffic... and ad-clicks generated by that traffic.

The business model here is to maximize traffic at any cost...
Totally irregardless of quality.

Assuming your traffic stats are OK...
I would put the monthly income higher at 25-30K...
But penalize ET for "low quality" traffic...
At least 20% of it from the developing world... which really doesn't count...
And a lot of just plain unsophisticated traffic.

So lower traffic/clicks...
But higher monthly income...
It's a wash:

Estimated value: $1,500,000 and zero upside

And that's after 10 years... the #1 site by far.
Making money off web traffic is harder than it seems.

My little trading business is worth 2 or 3 times ET...
With 10 times the upside.
More...

Nice breakdown.
 
Quote from wareco:

Valuation? Well, when was the last time you clicked on a banner ad that appeared on this site?
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When was the last time you saw a billboard ad and went straight to the store to purchase the item?

Banner ads are "top of the mind" advertising as much as interactive advertising. Whether you like it or not, you r mind subliminally factors in the information in the ad.
 
Quote from arealpissedgoy:

When was the last time you saw a billboard ad and went straight to the store to purchase the item?

Banner ads are "top of the mind" advertising as much as interactive advertising. Whether you like it or not, you r mind subliminally factors in the information in the ad.
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So, you are saying the banner ads here are not PPC ads?
 
Quote from forex-forex:

I would guess that 90% of Elitetraders.com worth is created by 5% of its posters. If those 5% stopped posting then ET would go downhill and revenue would dry up.
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Now here is a comment from a man obviously blessed with brains

Its the people with interesting things to say which make a website such as this prosper. The advertisers wouldn't be here if it was boring. So obvious yet not realized by hardly any websites.

The owner of Elite might be well advised to contact and encourage the cream of the posters if he wants this site to be worth anything.
 
Quote from HoundDogOne:

Good analysis.

The only thing that matters for a place like this...
Is traffic...
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Well, when considering pricing a website, I would also determine the cost of replacement/starting new.

Let's say the software itself can be had for 50K and the annual server fees is 5K (someone correct me if I am way out of the ballpark), thus the platform can be run on relative very cheap, compared to the asking price of 1.5-2 million.

Let's not forget that ET is basicly just a platform provider and all the content comes from the posters! So if a buyer decides just to copy the idea and come up with a similar platform, he only has to magnet content providers, which is us, posters. Once there are a few dozens quality posters, and a little time to get the word out, the traffic will come....

It might take 2 years and a little advertisement, but starting new can be a much cheaper choice/better return on initial investment....
 
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