Where does website value come from?

[The Londoner]

Might be a dumb question, but being non-techie please bear with me. Assuming a website does not exist to sell a particular service or widget, say for example Facebook, or indeed even PH, I assume that value comes from the number of visitors, any advertising revenue and links to and from the site.

I'm guessing that in the days of Web 2.0, paying silly money for domain names is over and done with?

Anything else that goes in to the pot?

[JamieBeeston]

Advertising is still what it's all about.
Why do you think Haymarket bought PH..

There are some other niche reasons, but mostly it's all about the Advertising $$

Without that.. Google wouldnt be anywhere near the size it is today.

[jamesuk28]

Domain name
Ranking
Traffic
design

[ukvoyager.info]

jamesuk28 said:

Domain name
Ranking
Traffic
design

Interesting, I would put it slightly different...

Conversions (assuming you are selling something)
Traffic
Ranking
Domain
Design

[jamesuk28]

I did not list it in any order, perhaps I should have. I do however agree with your ordering.

[CzechItOut]

I'd imagine the revenues from advertising, even on sites like Facebook, are a pittance compared to their "value".

I think in many cases the value comes from the fact that you are buying a ready made, fully populated database full of millions of "potential" customers that are ripe for harvesting.

[JamieBeeston]

CzechItOut said:

I'd imagine the revenues from advertising, even on sites like Facebook, are a pittance compared to their "value".

I think in many cases the value comes from the fact that you are buying a ready made, fully populated database full of millions of "potential" customers that are ripe for harvesting.

Isnt that 'advertising' then?

Advertising doesnt end at the banners you see in the corner

[ukvoyager.info]

But facebooks value is in the user generated content, not the site its self.

How you value a v2 site is anyone's guess. Probably what someone is willing to pay.

[JamieBeeston]

ukvoyager.info said:

But facebooks value is in the user generated content, not the site its self.

How you value a v2 site is anyone's guess. Probably what someone is willing to pay.

No, it's attraction is in the content, it's value is solely in the ability to market to people.

[srebbe64]

JamieBeeston said:

ukvoyager.info said:

But facebooks value is in the user generated content, not the site its self.

How you value a v2 site is anyone's guess. Probably what someone is willing to pay.

No, it's attraction is in the content, it's value is solely in the ability to market to people.

Yes, but it's still only worth what anyone is prepared to pay.

[JamieBeeston]

srebbe64 said:

JamieBeeston said:

ukvoyager.info said:

But facebooks value is in the user generated content, not the site its self.

How you value a v2 site is anyone's guess. Probably what someone is willing to pay.

No, it's attraction is in the content, it's value is solely in the ability to market to people.

Yes, but it's still only worth what anyone is prepared to pay.

or typically overpay in the case of most Social Networking sites..

But that rule applies to anything in life, as you especially know