How Can I Calculate The Cashflow of a Site with No Current INCOME ???

by Jah33
24 replies
Any ideas ? or info :confused:
#calculate #cashflow #current #income #site
  • Profile picture of the author KenThompson
    Well, it would be a negative cashflow to begin with. Since there is
    no current income from the site.

    You have outgoing costs and incoming revenue.

    EX:

    Costs = $50/month
    Revenue = $0

    Cash flow = -$50/month
    {{ DiscussionBoard.errors[1858596].message }}
    • Profile picture of the author Jah33
      Well maybe this will clear it up...I want to sell a site but have no current income but would like to use the potential cashflow figure as leverage, which is why I want to know how I can calculate that or maybe give a ballpark figure...?
      {{ DiscussionBoard.errors[1858744].message }}
  • You just can't. There's no such a thing as "potential cashflow calculation" if the site has no historic data to base those calculations on.
    {{ DiscussionBoard.errors[1858752].message }}
  • Profile picture of the author Thomas
    As Ken said, the site is in the red right now. Unless it has something else going for it, you're going to find it hard to make projections about cash flow with nothing to base it on.
    {{ DiscussionBoard.errors[1858772].message }}
  • Profile picture of the author Marhelper
    Some things that are non monetary but show value include:

    1. Natural Traffic. If you are ranking high in the SERPS for keywords that are bringing consistent traffic then this will be a selling point.

    2. List. If you have built up a list that is responsive then this would bode well. Of course, this would also mean that you were making some money from the site.

    3. Aesthetically pleasing site. If your site is well laid out and looks great then this also speaks to potential buyers.

    There are more but it is not ALL about the money coming in (although a money making site is about 95% + of the selling point).
    {{ DiscussionBoard.errors[1858783].message }}
  • Profile picture of the author NikkiG
    Oh and if you are getting traffic and it is targeted to a certain niche then you could throw in a calculation based on some affiliate product conversion rate, refund rate, % commission etc and estimate a clickthrough rate but really that's just making nice theories.

    If you can actually monetize this site yourself first then you'll make your life a lot easier on the sales side.
    {{ DiscussionBoard.errors[1858913].message }}
    • Profile picture of the author JohnMcCabe
      Originally Posted by NikkiG View Post

      Oh and if you are getting traffic and it is targeted to a certain niche then you could throw in a calculation based on some affiliate product conversion rate, refund rate, % commission etc and estimate a clickthrough rate but really that's just making nice theories.

      If you can actually monetize this site yourself first then you'll make your life a lot easier on the sales side.
      What Nikki is saying much more politely than I would is that the only way to come up with a future potential cash flow for a site with no past is to reach into the back of your pants. Make sure your hand is inside your underpants. Insert at least one finger and pull your projection out of your ass.

      If the site has no cash flow now and has never had any cash flow, any sale will have to be made on the intangibles.
      {{ DiscussionBoard.errors[1858929].message }}
    • Profile picture of the author Jah33
      Thanks Nikki....I'm a newbie myself, so excuse me for stupid questions but I rather ask and I do appreciate your patience and time. I did check my cpanel and it says that I had 289 visits last month and 120 so far this month..is that any good???
      AWSTATS
      << What's that ??? Thanks again for the help, I don't get everyone's humour...
      {{ DiscussionBoard.errors[1859022].message }}
      • Profile picture of the author sylviad
        Well, the point is you can't prove a negative.

        If you have no income from the site, what makes you think you can project what it can make? You have no figures to work with but 0s, except for what it's cost you so far, which will leave you with -0s.

        The closest you could come to any sort of projection is to take 1% of your current traffic x the cost of your product = potential income.

        If you only have 300 visitors per month, 1% is 3. If your product sells for $37, that is 37 x 3 = $111 per month projected income.

        1% is the average expected sales per visitor, but with a hot product, that could be 3-6%.

        Of course, this is no guarantee. If you have 300 visitors and have not sold anything, clearly your visitors to sales ratio is much higher. Maybe you need 500 or 1000 visitors a month to make a sale.

        Maybe the lack of sales is just because you have not had more than one view per person of your offer.

        It takes 7 views of your offer for someone to decide to buy. If you assume that those 300 visitors are repeat visitors who have seen your ad 7 times, then your real visitors might only be 43 (300 divided by 7).

        Are you counting unique visitors, because those are the people who dropped by once.

        Sylvia
        Signature
        :: Got a dog? Visit my blog. Dog Talk Weekly
        :: Writing, Audio Transcription Services? - Award-winning Journalist is taking new projects. Warrior Discounts!
        {{ DiscussionBoard.errors[1859049].message }}
        • Profile picture of the author Jah33
          Wow, this is all new to me but very cooool ! I have no product, just 2 ways to monetize my site through affiliates which ...lol..have made no money. I have what i thought was an established niche and a blog that I just tried to get to a certain level and sell. This is my 1st time.
          {{ DiscussionBoard.errors[1859108].message }}
          • Profile picture of the author Jah33
            I just was trying to get an idea of how much I can sell the site for and what it's based on or what I can use in this case that I have no income, no list ( I do have a form of capture, thru Aweber) but don't know why they are visiting and not leaving name and email...I do offer a free gift that I got resale rights to but maybe idk???:confused:
            {{ DiscussionBoard.errors[1859126].message }}
      • Profile picture of the author JohnMcCabe
        Originally Posted by Jah33 View Post

        Thanks Nikki....I'm a newbie myself, so excuse me for stupid questions but I rather ask and I do appreciate your patience and time. I did check my cpanel and it says that I had 289 visits last month and 120 so far this month..is that any good???

        << What's that ??? Thanks again for the help, I don't get everyone's humour...
        Jah33, you wouldn't be the first person who didn't get my humor, and you likely won't be the last.

        What I was getting at is that you have absolutely no real basis for establishing any kind of value.

        > Minimal traffic, although if you can grow that number it would have value to someone.
        > An opt-in box that isn't converting, and therefore no list.
        > Links to two affiliate products that aren't making sales.

        Do the programs you are affiliating with give you any indication if you are actually sending them any traffic?

        Do you have a domain name that contains keywords related to your niche? The domain name itself may have some value.

        Another way to demonstrate some market value would be to put Adsense or similar on the site and see if you get clicks on the ads. That would have some value.

        Based on the data in your initial post, pulling a number out of your ass would be as valid as anything else. There's nothing there to base a projection on.

        I hope this answer was a little more helpful than my last one...
        {{ DiscussionBoard.errors[1859383].message }}
        • Profile picture of the author Jah33
          My domain name contains the niche wedding dresses but is so general and has a lot of competition for it, so its not the greatest>> weddingdressesreport.com . I do have articles that concentrate on keywords for SEO that are searched enough but not high competition. I don't know how to check if my affiliates are getting any traffic from my blog which is just being naive and lazy to find out or learn. I will try the Adsense. Yes, I was hoping to pull a number out of my ass as well as others..lol. I have done a share of social bookmarking with audio, video, and tried software but didn't have any success with the toolbar I made because I didn't know where or how to submit it to directories. I also have a social networking acct. with Twitter(WeddingDressRep) which have only 60 followers.
          {{ DiscussionBoard.errors[1859583].message }}
  • Profile picture of the author RentItNow
    Who would buy a site that is not making any money? The only way would be if there is some other value to it like a specific following that is proven to buy or the value of the domain name itself.
    Signature
    I have no agenda but to help those in the same situation. This I feel will pay the bills.
    {{ DiscussionBoard.errors[1862459].message }}
  • Profile picture of the author fasteasysuccess
    This is how you need to do it if no current traffic or sales...

    Start immediately and put analytics like google or whatever on your site if not already.

    Right away start building value and systems which any one can immediately use when they buy it. Make sure powerful offer for info of leads and or prospects and start building a list and add that in as a bonus. Ready to go list and leads you have built for them.

    Then start submitting positive backlinks and article-blog-video-press releases to create natural traffic and things to project more value.

    Plus if possible start generating money to show more value. If you don't have any sales than obviously you can't show a profitable site, but with all those other things you will immediately add way more value to your site than currenty.

    I did all that and a little more to build an internet ad company a few years ago and sold for way more because of me showing and proving the systems already in place for them on day one.

    The one thing key to project value besides showing sales is to show traffic and systems in place. If you do start making sales make sure everything is saved and documented to add as proof of business value as well
    {{ DiscussionBoard.errors[1862501].message }}
  • Profile picture of the author rickdearr
    You will have a much harder time trying to sell the "potential" income with no sales or stats. Couple ways to go.
    Sell it cheap, make a profit on the work you did to make it, don't blow smoke at anyone and have them disappointed, you are going to want to build a good rep for making quality sites. Stay in touch with the new owner and get a testimonial when they have something to say about it... ie how easy you were to work with, how they could jump right in and turn a profit with your ready made site, etc...

    2. Hang on to it learn a little more about traffic and conversions, sell some products from the site PLR or ClickBank, Amazon, whatever suits you and the site best. Then get 3-8 times earnings depending on the buyer...

    Good luck
    Signature

    Rick Dearr
    RnR Marketing, LLC
    Sandy, Utah 84070
    http://www.winnerscircletraining.com/gonow
    90 Second Video - Free Access

    {{ DiscussionBoard.errors[1862834].message }}

Trending Topics