www.elitetrader.com is worth...

Quote from Pekelo:

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 basically 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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A site like this isn't worth much because the monetized value is based on content provided by the user. The site can be easily replicated with a few innovative marketing ideas. Heck, all one has to do is look at the posts in feedback on how to change this site to get all the ideas on how to make a better site. They can be up and running in a couple of days. Advertise on all the independent trading blogs and you got traffic similar to ET flowing in within a month.

With quite a few dim-witted megalomaniacal moderators and all the junk and yahoo riffraff on here lately, I'm surprised no one has put up an alternative site. Maybe something to do at a later date.
 
Well, pretty much that's what I said. Surf did try to start a similar site and failed. It isn't that easy, but it is MUCH cheaper than buying ET.

Also let's say I buy ET for 2 millions and it will take 5-6 years just to get back my investment. What is the guarantee that somebody isn't going to start a similar site in the next 5 years with better ideas/graphics/posters??? There is no such a guarantee, thus I find the 2 million as the current stated value way too high and buying it for that much too risky...

But that is what business is all about. Where someone sees risk, others see opportunity...
 
Quote from Pekelo:

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....
More...

The software has little value...
It's off-the-shelf stuff with some modification...
One talented programmer could clone ET is 3 months.

What makes ET work is "critical mass".
Once you hit 5,000 or 10,000 "members"...
It just keeps growing on to the current 80,000.

The HUGE barrier to entry... is getting those first 5,000...
Just like launching a new ECN...
Depends totally on a "critical mass" of liquidity to get going.

And there are very few serious Pros posting here...
They have better things to do...
So 98% of the "content" here is totally worthless crap...
Posted by 20 somethings trading a 10K account...
Basically "subsistence level gamblers" on the sociological scale...
Very comparable to a Poker Forum...
But I'll bet 2+2 Forums is worth MUCH more than ET.

The ONLY reason I come here...
Is because I enjoy writing for 5-10 minutes/day.

Do you not understand that ET exists for ONE reason:

To transfer wealth from young, wannabe traders...
Into a well-oiled Securities Industry Mook Fleecing Machine?
 
Quote from HoundDogOne:



To transfer wealth from young, wannabe traders...
Into a well-oiled Securities Industry Mook Fleecing Machine?
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I can't wait til Monday where I will take your hard earned dollars.
 
I did a back of the envelope computation:

I estimate that ad revenue is on the order of $75k to $100K a month. The expenses are probably on the order of $10k/M. That means that net operating profits a year for the site are on the order of $1M.

I would value the ET business easily at $3M to $5M. All that the site given by the OP measures is based on number of hits. It doesn't take into account ad revenue. For example, it values Google at approximately $1.7B, or about 200 x less than the market values it.

nitro
 
Quote from nitro:

I did a back of the envelope computation:

I estimate that ad revenue is on the order of $75k to $100K a month.
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Based upon what assumptions?
 
Just like countries, economies, companies and just about everything else including websites they all need constant updating or they become stale and boring and ripe to be upset by rivals.

This is still a good site imho but it hasn't changed much in years. I don't see new features, articles by noted traders etc etc.
Could easily be worth a whole lot less in a short space of time if the owners ( excuse me saying ) don't try a bit at least.
 
Quote from Humpy:

This is still a good site imho but it hasn't changed much in years. I don't see new features, articles by noted traders etc etc.
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I generally agree, although the main context is information/text. So there isn't such a big need for huge changes.
As long as there is a need for people with the same interest (trading, fishing, football,etc.) to exchange ideas and express their views, websites like this will exist.
And as long as there isn't much competition, there is no incentive for the owner to change the site. Why mess with success? :)

Now there is an interesting contrarian relationship between the price of the website and buying it.
The more the website's asking price, the less worthy it is to buy it. Why? Because starting a new (entering the field) is still the same cost, so your risk is bigger when you are buying a website costing more and again, you are not guaranteed against future competitors...
 
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