How do you value a directory?

[temi]

Two people recently asked my opinion on what their directory could be worth, I did not have a good answer as I don't know.

Using our combined expertise in this forum, why not let us see if we can come up with sets of criteria we can use to value a web directory, please add your suggestions to this post, we will then use the criteria to do a demo valuation on one of my directories.

So, off we go, what is the first item to consider ?

 

[Resonate]

Good question Temi, i dont value just directories this way mainly all websites but i tend to go in the order of:

1. Backlinks (the more backlinks, the more value)
2. Traffic (valuable source of traffic bumps up price)
3. Domain Age (i believe this at times v. important)
4. Directory Software (directory licence (if any))
5. Skin (custom made adds value)
6. PageRank (for those finatics out there)

 

[temi]

Thanks for that resonate, the reason I mention directory in particular is that they tends not to have quality contents, most directories just contain categories and sub categories listing sites, unlike website that probably has original contents and less outgoing links which makes website more valuable than directories.

 

[Resonate]

Hence there are some excellent directorys, I believe a directory becomes more valuable when they are well organised, totally spam free & unique. Two come to mind which i know of being bagi's directory & skinners w3bids, both look great & are very well organised.

Two directory's i would actually consider of value.

 

[temi]

Other factors to consider in directory valuation:

Domain Extension - .com is probably more valuable and easier to transfer than .co.uk
Niche of Directory - A finance directory for example will be more valuable than a hairdressers or general directory.
Revenue - Is the directory generating verifiable revenue?
Source of backlinks - Are the backlinks from diverse sources or are they all from the vendors other sites?

 

[OldWelshGuy]

I see only TWO issues to consider.
1. Current earnings
2. Potential future earnings

I am a simple chap who believes in keping business as simple as possible.

 

[Resonate]

I see only TWO issues to consider.
1. Current earnings
2. Potential future earnings

I am a simple chap who believes in keping business as simple as possible.

Got to agree, i must admit i have always kept my directories free & ad free too. :blink: May have to change that slightly :good:

 

[OldWelshGuy]

If a site is earning £100 a month, and I can see room for improvement in marketing/seo of it a few hundred%, then I see it as say a £300 a month site, and as long as I can make my money back in 12 months I am a happy bunny.

I rarely buy sites though as I prefer ground up building from concept to completion. Sell a couple though.

 

[scoobby]

also you have to consider if it is well indexed if the SE visiting it often and the internal pr value

 

[clangallacher]

I totally agree with OWG, but to achieve your anwser, you must have a combination of Resonate and Temi's considered factors or parts there of, or the site to be sold would not have any:

1. Current earnings
2. Potential future earnings

 

[SkinnerW]

I think most agree to some degree that traffic = earnings so this would be my first criteria...

 

[Robocop]

Totally agree with:

1. Current earnings
2. Potential future earnings

was my first thought on reading the tread opener. If a directory has say £1000 worth of listed sites it means people are happy to pay to be in it plus it has the value of relisting fees if those are yearly subs.

 

[mikeinlincs]

It's like anything it's only worth what someone is prepared to pay for it....

How much do you think WW is worth ?

The estimated value of http://ukwebmasterworld.com is: $256,520

Find out how much your site is worth at dnScoop - Domain Name Value, History, Stats Tool and Forums

more than mine for a guess..... lol

Mike

 

[temi]

Mike, I will give you 50% dicount off what your valuation of UK WW is if you bring the cash tomorrow

Some daft bugger tried to sell me a site using the valuation tool above, his site was valued at about $90,000 or something like that, we eventually settled for $100 cash

 

[Resonate]

DNScoop is a great tool. i notice it way over values domains, a better more accurate one is Smart PageRank - check & monitor PR

Temi!! Would you really sell that easily?

 

[mikeinlincs]

Mike, I will give you 50% dicount off what your valuation of UK WW is if you bring the cash tomorrow

I bet you would and you would laughing all the way to the bank... temi you could retire on that now you have hit your 65th birthday... lol

Mike

 

[mikeinlincs]

a better more accurate one is Smart PageRank - check & monitor PR

Great tool Resonate thanks for sharing it.

Mike

 

[temi]

temi you could retire on that now you have hit your 65th birthday... lol

Mike

I bet your pardon, I am only 64, I will be 65 next year but I am happy to retire one year early if you buy my site for the crazy valuation about

 

[mikeinlincs]

crazy yep way under valued if you ask me...

:sorry: for getting your age wrong temi, I was never much good at maths. But with only a year to go, we better get the value up even more (if I get a cut)

Mike

 

[temi]

Will give you 20% good enough for you?