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How do you value a directory?

There are 2 valuations to consider:

1. Company/site value

2. Value to advertisers


Company valuation is what advertisers want to know, it's a confidence thing, but if looking to expand a company or build a chain of sites, you should look at:

Domain/Business name - this is so important and many get this wrong. People will need to remember this to:

Bookmark it
Type this into a search engine or address bar
Talk about your site in passing

Websites that go bust or close down are of no value, and the domain and subject area are crucial in whether they become popular or sit collecting dust. Get the domain wrong, and you might as well forget it bcos nobody will remember your fantastic site if it cannot be found. Oh and not everyone bookmarks sites - many go straight to the address bar and type a url in for a quick find! Domain names need to be invented so they can help with expansion needs and fit with other site ideas.


Website specialty - the most important thing is what the site does and who is it's users. Again, get it wrong and you'll never get enough exposure. This is crucial when seeking investment or selling a site.


Stickyness - what keeps visitors at your site and returning time after time? Returning visitors are you're bread and butter, so making a site popular and full of great, interesting content is a must. But this requires industry expertise and doesn't mean add articles or news, this is something entirely different.


The Idea - THIS is the most important thing about any website, and getting this wrong isn't an option. Forget what others have done and look for a service idea over something trashy and cheap, where others will get it for free, over paying you.

Whatever you decide on, it needs to specialise and that gives you a massive edge to sell with. Even with all the above expect to make no money for at least 3 years and not break-even for probably years after that. Remember most are only at a building stage and have nothing in real-terms when put next to Amazon.com etc, and need a very good resource before they even think about charging fees. Add good free stuff eg: free links that are beyond others and never add stuff below what others offer.
 
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