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How to put a valuation on a website idea?

 

Hi Dave,

No problem hope some if it helps even if it is more devils advocate rather than acutual fact.

Ok so you have an idea, you have investment offers of time / money. But you are trying to put a cash value to an idea which is just about impossible to do especially if you are forging new ground in a niche market. So how about looking at it like this.

You have a cash in jection of 84K and the project is going to take the programmer 30 days to code up at 400 per day a designer 10 days we will use the same rate. And of course you want to retain ownership. So the total investment in is 100k of time and money.

You keep 60% the final 40% is worth 100k

Invester gets 33.6% designer gets 1.6% developer gets 4.8%

At this stage does it matter if the company is worth 1mio or 100mio? you are working out what percentage to give away to people who are prepared to take a risk on your project. The only valuation you are likely to get is what the cash injection and a cost of the time put in.

Again not sure if that is of real help just some ideas to help you move it forward.

Best of luck with it, when you can keep me posted on the idea.

Cheers

Jez

 

 
  • How to put a valuation on a website idea?, DavidMurphy, 6 Jun 09:16
    Hello, has anyone got any suggestions/experience in putting a value on a website based business idea that is not yet "live"? The plan(s) I have has a whole variety of revenu ...
    • How to put a valuation on a website idea?, eCommConsultant, 6 Jun 15:36
      This is probably one of the hardest things to work out, before the dot bomb you could stick your finger in the air and come up with a figure. Now ofcourse it is very different. ...
      • How to put a valuation on a website idea?, DavidMurphy, 11 Jun 08:58
        Thanks EcommConsultant - have worked up those models using different "average cost per acquisition" of Users. A question: is there an "industry average" for cpa? (digital industry) ...
        • How to put a valuation on a website idea?, eCommConsultant, 11 Jun 10:46
          Hi Dave, This would take reasearch to find out exactly what the proposition is and what the market is currently paying for a comparitive site. I mainly deal with getting si ...
          • How to put a valuation on a website idea?, DavidMurphy, 11 Jun 17:37
            Hi Jez, thanks for your replies - it is an interesting arena. I have pitched my idea to a few people who may wnat to invest (tim, money or both) but am struggling on the how muc ...
            • How to put a valuation on a website idea?, eCommConsultant, 12 Jun 09:36
              Hi Dave, No problem hope some if it helps even if it is more devils advocate rather than acutual fact. Ok so you have an idea, you have investment offers of time / money. B ...
    • How to put a valuation on a website idea?, Simon78, 10 Jun 11:48
      Please consider (http://www.firstsitesubmission.com) firstsitesubmission for submitting your new site to 66 of the major search engines. ...
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