How Can I Know How Much Money A business Is Making?

by Joe Ox
13 replies
Beside the generic indications given by Alexa.com, Cubestat.com or Trafficestimate.com

how can I know how much a product is making and how much income a website is making?

The purpose is to have an idea about the revenue a competitor business can potentially generate and how much market there is.



-Joe
#business #making #money
  • Profile picture of the author AZMD
    It is difficult at best to find out how much money a private company makes.
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  • Profile picture of the author ryanman
    Originally Posted by Joe Ox View Post

    Beside the generic indications given by Alexa.com, Cubestat.com or Trafficestimate.com

    how can I know how much a product is making and how much income a website is making?

    The purpose is to have an idea about the revenue a competitor business can potentially generate and how much market there is.



    -Joe
    There is no way...And rightly so as well. If you could discover what a business is making then all you will have to do is model the same & reap the same results within no time.

    Although deep down almost everyone wants to know what the other guy is earning...
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  • Profile picture of the author Kingfish85
    Unless it's a public company that you have access to earnings & reports, you can't. The sites you listed above are in no way accurate.
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  • Profile picture of the author Joe Ox
    Are they not accurate at all???
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    • Profile picture of the author Kingfish85
      Originally Posted by Joe Ox View Post

      Are they not accurate at all???
      No. You calculate a sites worth by its income. As for other online businesses, generally a 1 year income estimate is what it's worth depending on the industry.
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      • Profile picture of the author Campaignmarket
        Hey there Joe!

        Well it depends on the company you want to know about!
        If they're stock noted, then you can get an idea about how much they
        earn because you will able to see their accountings! But thats about it!

        There aren't any other real good ways to estimate it. And it has been stated
        you can't see it from their traffic, because if their traffic would = total profit.
        Then you would assume they have a 100% conversions on one product!
        So the only one thing you can be sure of is a sales estimate! But that can be hard because that relies totally on how many products they sell also.

        So lets do a generic example of a company with only one product!

        1/ Get a traffic estimate! Lets says 5000 visitors per month.
        2/ Check the price for the product including Upsells and downsells!
        3/ Add the price together = that equals one customer. Lets say 100$
        4/ If they have an 100% Conversion rate = 500.000$, 50% = 250.000$
        ...Just divide by the number of percent

        But like I stated above in relies on they're only have one product and that you have access to their traffic. More products will add to the complexity of the math you have to do, besides its guess work so why bother?

        The time you spend figuring out your competitors then more time is wasted on
        actually earning money!

        I hope this helps you!
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        • Profile picture of the author Joe Ox
          Thanks

          btw
          Originally Posted by Campaignmarket View Post

          The time you spend figuring out your competitors then more time is wasted on
          actually earning money!
          I don't want to figure out my competitors because Im curious and Ive nothing to do. As I previously stated in my post:

          The purpose is to have an idea about the revenue a competitor business can potentially generate and how much market there is.

          I meant this:
          if there is some kind of tool to figure out what a business is doing, I could have a precise idea wether there is a wealthy market in that niche or kind of service and if it is a good idea to enter the market as a competitor.

          So, how do you guys start on a project? if there is no way to know how much money a business makes, which kind of testing do you do before investing time and energy and money in a project?
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  • Profile picture of the author Campaignmarket
    Sounds to me what you're more interested in, is where to focus your efforts?

    You know its much better to have less competition, ideal would be no competition!
    I know there does exists some tools that can help you find profitable niches that also
    checks for competition! But it does depend on the market that you want to enter! For instance there is Amazon Niche Finder - WSO Product by Mike Tyler!

    So to answer you question how do we start a project without knowing what the competitors are making! I try to guage the competition by doing some preliminary keyword research, checking out how many hits it gets on EXACT and PHRASE match!
    But that can be difficult, because you don't always actually find those sites that a scoring the huge profits there. So my best advice would be to try and find a market with low competition rather than to try for a specific product or niche.
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  • Profile picture of the author Thomas W
    Online research will still give you an educated guess. For one thing just because they have lot of traffic doesn't mean their making a profit.

    Probably the most accurate method
    is to purchase a report about a business
    from the sites below

    D&B
    Hoovers | Business solutions from Hoovers
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  • Profile picture of the author vok
    Alexa is useless at telling you anything I have sites in the 3,000,000 range that make more per day than some sites in the 50,000 region.
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  • Profile picture of the author Joe Ox
    if you know how many visitors a website has and how many ads they display on their page can't you have an idea of their ad's income?
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  • Profile picture of the author abbeynism
    none of the statistics site listed will give you exact value of a site BUT you can still use the statistics gather and make an average calculation with those details.
    cheers.
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  • Profile picture of the author mollymarkiewicz
    You can try to check them on www.Compete.com. It may give you an idea of how well their businss is doing, or at least how many visitors they are receiving.
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