To get specific, a friend wants to sell his site which is about night life of a city. His site:
1. Zero revenue
2. Not very bright
3. Not interesting domain
4. Some party pictures of clubs
5. The webdesign and backend was bought from this Malaysian site www.kakilang.net for 100USD. His site is ditto as Kakilang minus the blog feature.
6. Members is 110, but because of lack of update in recent months, the traffic is nil for the past 6 months
I use normal business valuation methods, if the site is ecommerce. Every investment has a return (whether negative or positive), so that's where I'd start. "What return on investment have you received during 2004 - 05?"
He should provide a profit & loss statement. If it's a new ebusiness, perhaps he could calculate future earnings figures.
Judging from your information, it sounds like the asset is not producing any return and has zero goodwill. Therefore, it's probably worth the price of the domain name + a small design fee.
If you are seriously considering buying an ebusiness, you should ask to see the last tax return and financial statements. This would provide information from which to make a value assessment.
As with everything - It is worth what someone else is willing to pay and what you are willing to sell it for.... nothing more and nothing left.
Not particularly helpful, but a site like you describe is as above - worth the cost of registeringthe domain name and possibly a % of the design - if the design is particularly good, then it would be worth more...
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If it's a community site with no goodwill, a duplicated design and a poor domain name, then it's probably worth less than $50.00.
Even community sites are an investment, and every investment has a return (in this case, probably negative). You should find out how much the owner has lost on the site, so you'll know what it will cost you in the long run.
Why would you want to waste $50.00 on something that produces a negative return? This means you'll be constantly paying money to maintain the site, for no profit. Even the most altruistic community site owners now make money from their ebusinesses.
If you still want to buy it, you need to work out what return you expect, in order to make the investment worthwhile. You can make money from community sites in a zillion different ways.
Mekhu, tax returns and financial statements are valuations of a business (profit & loss, balance sheet etc). When people buy a business, they generally ask to see the tax return because balance sheets can be easily exagerated.