Wealth reference: How to evaluate the value of a website

Reference

I have a friend, is a well-known magazine of the Science and Technology line reporter. On one occasion, she prepared a questionnaire, want to ask the domestic well-known website responsible person to answer. The topic is a bit sharp: which websites do you think are worth investing in? As you know, these sites are still not seeing profits, so why are they worth investing in? Is your company's website worth investing? Why? The survey, however, points to an interesting theme: how is the value of a business website measured?
Generally speaking, a company is worth investing because it is profitable or has the potential to profit. Even in the United States, the vast majority of internet companies are still not making money, why is it worth investing in unprofitable companies? What is the value of a Web site? In the United States, so many investors buy so-called internet stocks, these people think of the value of the site?

Some people say that the war between websites can be called eyeball war. Everyone is fighting for the favor of every Internet user. This view seems to suggest that the more people look at a website, the higher its value. We've seen for a while that news reports Yahoo! 's website page has been browsed (PageView) by her rival Lycos, and its share price is falling. Investors simply don't care that Yahoo! is already a profitable company, and Lycos is not.

The formation of PageView comes from two factors. One is the number of people on the station, one is each on the station to see how many pages. You can write the following formula:

PageView = number of people on the station X average per person to see how many pages

A website if the number of people on the station is small, but each person on the station to stay on the site for a long time, the more pages to see, it's pageview may still be very high. Conversely, there may be a station to attract a large number of people, but everyone stays in a short time, the page is very small.

It is difficult to balance a website when it is operating because it involves the cost of the operator being able to do it on the production Web content or on the Internet. If you want both, there are probably only some so-called portals that can do it. On the one hand, the development of content (you can attract users to look at a page), the development of tools or services, such as free e-mail (can attract registered members to ensure the number of people on the internet every day).

However, no matter how pageview the last generation, slowly its importance is being lowered. The eyeballs of Internet users are of course very important, but if the eyeballs cannot be converted into profits, PageView is no use, and this has also begun to cast doubt on whether the production Web content can be recycled from online advertising.

Wall Street analysts and investors are not fools, and slowly everyone found that rely on selling internet advertising to support a site not only in the short term is not possible, even if the market for online advertising is growing, in the long run, advertising revenue is not enough to support the operation of the site. The reason why people pay so much attention to PageView is that it represents an increase in the revenue of Internet advertising in some way. TV ads are expensive because of high ratings, this idea is very reasonable!

But when people find that the ratings are high, and the profit from advertising is disproportionate, the direction of the site operator is slowly changing, and Wall Street investors are starting to assess the value of a site in a different way. PageView's number is no longer representative of everything, the number of people on the station, or even a website registered members of the number, more important than the PageView.

The reason is simple, because the future of E-commerce will be a major source of revenue for a website. Therefore, "head" is more important than "eyeball". An E-commerce site, pageview not necessarily high, as long as the number of people on the station is good. Even on the station of the people do not need more, as long as everyone on the station turnover rate is good. In the back of this idea, the most important thing is that the user's personal data database has an unusual importance.

Previous large websites have been used as Internet media to provide content in exchange for advertising profits. Now the large web site to provide content for the purpose of operating members, the last member of the information used to operate E-commerce, the model of the entire site is slowly shifting.

How do you evaluate the value of a Web site? Let's not forget that although we are not making any money at present, we can evaluate the value of a commercial website and return to it whether it has the ability to profit.