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

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Any ideas ? or info :confused:
#main internet marketing discussion forum #calculate #cashflow #current #income #site
  • 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
    • [1] reply
    • 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...?
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  • 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.
    • [ 1 ] Thanks
  • 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.
  • 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).
    • [ 1 ] Thanks
    • [3] replies
    • How would I check #1 ????
    • How would I check the SERPS ???
      • [1] reply
    • Hey Marhelper,

      What is EZA ???
      • [1] reply
  • 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.
    • [ 1 ] Thanks
    • [2] replies
    • 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.
    • 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...
      • [2] replies
  • 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.
  • 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
    • [ 1 ] Thanks
    • [1] reply
    • FastEasySuccess thank you soooooo much !!!

      This is what I was asking for, some direction so that I can plan the next activity or another angle to use. I appreciate your info & time. I will install the analytics and continue social bookmarking, I got some tips on here...used pinger & openwire. I thought maybe I need to change my page around to move the opt-in button perhaps it doesn't trigger enough 'call to action' ?
      • [1] reply
  • 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
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