How to Read Website Valuation: How to calculate the worth of a website? RTF
Website Valuation is the first book about calculating the worth of a website using a method that is suited for all sorts of websites, whether ecommerce or non-ecommerce websites. Written by digital marketing and digital M&A consultant Paul Haarman, this book will introduce a method of valuing a website or ecommerce site. The main question addressed by this book is: How much is a website worth? After years of studying data of all sorts of websites and online shops the author discovered 5 website value drivers that are responsible for driving website worth. In this book you will learn to use a methodical approach in valuing a website. The different parts of the website valuation process are being discussed including a financial valuation and a qualitative valuation based upon the 5 website value drivers. You will follow the method of website valuation through a step by step example explaining some practical issues along the way. A specific chapter is dedicated to the appraising of website domains. In this book a distinction is being made between information based websites and ecommerce websites. In calculating the worth of a website it makes a difference whether direct financial results are available or only indirect results or even no results whatsoever. You will learn that with this new method of valuing a website every single website may be valued. Apart from explaining the methods of valuing a website you will also read about some pitfalls you may encounter while trying to calculate a website’s worth. At the end of the book you will find an interesting read about the future of retailing and website acquisitions and the growing market for website investments. The market for Mergers & Acquisitions will change course from the physical to the digital world. In reading this book you will see that this also has a significant impact on the valuation process.
