How Much Do You Think YE.com is Worth ?

**Aletheides** · 07-09-2007 08:35 PM

How much do you value this site to be worth ? I would say mid XX,XXX - I want to buy it someday.

**usakos** · 07-09-2007 08:36 PM

what site?

**Aletheides** · 07-09-2007 08:38 PM

Originally Posted by usakos

what site?

I dunno ????

**peaches017** · 07-09-2007 08:41 PM

~90k+

Peter

**Unreal030** · 07-09-2007 11:02 PM

Probably a good bit. It could be expanded by quite a bit from its current state, and at times I feel a bit depressed that it is in this state given the potential of the domain name...but I digress.

If nothing else there are probably a good deal of other domain names up for grabs that aren't far off from this. For some reason the Young Entrepreneur section of the internet is not very developed or exploited and is something I will take advantage of some day in the future.

**mattonline** · 07-10-2007 04:52 AM

the owner (i spoke to a few months back) said he wanted to sell for high xx,xxx / low xxx,xxx

**syia** · 07-10-2007 06:26 AM

i value it.. 1 Million hehe

**akula** · 07-10-2007 07:58 AM

Originally Posted by Aletheides

How much do you value this site to be worth ? I would say mid XX,XXX - I want to buy it someday.

can anyone report a recent sale price for a popular forum?

I'd like to know how much they paid per active user

**Paint and Air Sportz** · 07-10-2007 08:41 AM

Originally Posted by akula

can anyone report a recent sale price for a popular forum?

I'd like to know how much they paid per active user

I belive one of my other forums im on alot www.pbnation.com was just sold for over a hundred thousand but it has alot more active members. Just about ayt anygiven times their are over 2000 people and over on the forums.
here are some stats on it
Most users ever online was 5,260, 11-15-2006 at 09:08 PM.
Posts: 35,406,893 Threads: 2,119,812 Members: 342,840

and the rotating banner ad at the top of the page costs $1000 a month for a spot (5 spots on one rotationg ad space)

**akula** · 07-10-2007 09:38 AM

ok...so;

the acquisition multiples would be:

100k/35,406,893 = $0.0029 per post
100k/2,119,812 = $0.048 per thread
100k/342,840 = $0.23 per user

that would value ye @:

112,444*0.0029 = $326 (posts) or
16,165*0.048 = $777 (threads) or
22,944*0.23 = $5277 (users)

therefore, the valuation range for ye is gonna be between $5277 and $326 based on pbnation multiples

however, with pbnation, their post/users ratio is 103.27 (35,406,893/342,840), but ye's ratio is 4.9 (112,444/22,944). because pbnation's users are roughly 20 times more active than ye's users (i.e. 20 times less likely to leave), a prudent purchaser would argue that ye should be priced in the lower end of its valuation range

pity....and something that painfully underscores the problems with this forum that I raised over a year ago (and my post was deleted, btw)

alternatively: if ye was a more active forum and maintained a user/posts ratio similar to pbnation, we'd have about 2,369,426 (22,944*103.27) posts on this forum valuing the site at $6871 (2,369,426*0.0029) rather than $326 (a difference of 2107&#37

...if the founders of this forum implement a policy for increasing posts per user ratio - they can see their capital gains from the sale of this site multiply by over 21times!

It will mean the difference between being offered $5277 and $100,000

Finally: In terms of valuations, the problem is that YE's member activity rate (posts/user ratio) is the lowest in the industry. According to the statistics, the top 20 most active forums on the net have ratios between 32767 and 1166 posts per user. This forum on another hand has a ratio of 4.9, ranking it at 1860 (in terms of member activity) out of 1933 forums tracked by bigboards....literally speaking, this forum is at the bottom of the scale

**akula** · 07-10-2007 09:43 AM

anyone care to report a diffrent forum sale just to double check the multiples...maybe the pbnation acquires simply paid below market multiples and got them selves a bargain?...

**jasaunders** · 07-10-2007 09:57 AM

How many users on here are really that active? Maybe a few dozen? The lower end of your valuation range sounds about right.
Even at $0.23 a user, a large majority are not active. If we had for instance 100 active users, that is about $52/user, which sounds extremely high. If we somehow had active user stats (like users that have posted more than 10 times in the last 6 months) maybe we could get a better valuation. Also, maybe just knowing unique visitors would prove helpful in determing a more accurate valuation, because there can be lots of 'viewers' that don't sign up but generate revenue.

**EthanK** · 07-10-2007 10:06 AM

You're dreaming if you think this site is worth anywhere near xxx,xxx. I would put it at very low xx,xxx AT MAX. The active user base on here is tiny, new threads don't come up everyday, but rather it seems a few for every week.

**virginfootsteps** · 07-10-2007 10:21 AM

i agree it is very inactive.

hours between single posts.

**akula** · 07-10-2007 11:16 AM

Originally Posted by jasaunders

How many users on here are really that active? Maybe a few dozen? The lower end of your valuation range sounds about right.
Even at $0.23 a user, a large majority are not active. If we had for instance 100 active users, that is about $52/user, which sounds extremely high. If we somehow had active user stats (like users that have posted more than 10 times in the last 6 months) maybe we could get a better valuation. Also, maybe just knowing unique visitors would prove helpful in determing a more accurate valuation, because there can be lots of 'viewers' that don't sign up but generate revenue.

very good points there

of course, the owners of this site will disregard the above valuation range, and instead value the site by discounting its cashflows (which are a function pageviews and UVs, as you mentioned). I mean, if this site is pulling in 40k p.a. revenues, the valuation range is gonna be vastly diffrent to the aforementioned nonsense I posted

However, at 40k, what's the discount rate gonna be? The owners are gonna push for a low (7-8&#37

discount rate (to increase the valuation to 200k+), but the prudent purchaser, will hike the rate to over 40% and push the val down to 100k

And she'll be able to do that because the risk of this site becoming barren is pretty high (higher than on other forums). Our contributor base is undiversified. If the top 10 users here (in terms of posts/day) left the site, 90% of this site's new daily content (about 150 posts) would be gone

The result is 5-10 new posts per day (i.e. maybe 1-2 new threads) which means that new members won't join, existing members won't have anything to reply to and the site will quickly die out..I've seen it happen with forums like zeromillion

the solution for ye is to increase the post count per registered user and diversify away from the 20 odd people who contribute 90% of the forum's new content..if this doesn't happen, the discount rate is gonna shoot through the roof when it comes to discounting the cashflows this site produces

Essentially, Josh; at 2.95 post/per day, you, my dear friend are the most frequent contributor to this site out of those with more than 200 posts (similarly to Dr Money), and if you guys left, the valuation of this site would significantly decline. So they all better be nice to you!! :-)