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Thread: So I have a potential investor

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    Cian is offline Unknown Net Builder
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    So I have a potential investor

    Hey,
    I have someone interested in investing in my website. The website has yet to go in to development, which they are proposing to pay for. The person wants to know what number of hits we can expect and what revenue we will earn as a result.

    The problem is, I have no idea how to calculate these numbers. I don't know what amount of hits we can expect when the website isn't even up and running yet.

    I'm hoping someone can give me some advice on this so I can be more informative to our potential investor.

    Any help appreciated.

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    Aquarezz's Avatar
    Aquarezz is offline Master Net Builder
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    Hmmm.. What's the niche? Are you sure the investor is serious? There are a lot of things to analyse before pasting a number on something -- and even afterwards, the numbers can variate a lot from what you expected (higher or lower)

    Greetz
    |Nico Lawsons

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    Cian is offline Unknown Net Builder
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    Quote Originally Posted by Aquarezz View Post
    Hmmm.. What's the niche? Are you sure the investor is serious? There are a lot of things to analyse before pasting a number on something -- and even afterwards, the numbers can variate a lot from what you expected (higher or lower)

    Greetz
    Yes, the investor is definitely serious. We have met in real life and they like the concept.

    When you say a there are a lot of things to analyse, could you give me some specifics? Anything would help.

    And I agree, there will be a lot of variation no matter what my estimates will be. But my problem is that I am not even aware of what range of estimates I should be making.

    Thanks

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    Aquarezz's Avatar
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    Quote Originally Posted by Cian View Post
    When you say a there are a lot of things to analyse, could you give me some specifics? Anything would help.
    Thanks
    Are there a lot of websites that do the same?
    Is it something which is popular now, or something which will stay popular for a very long time?
    Do you know friends who are interested in the niche? If a lot of them are, mostly a lot of other people will be interested in it too..
    Is it going to be a big site (Tech-Faq) with a lot of pages, or only a little one with a few pages (ProxB.Com)?
    Will the website be in a high-paying niche or not?

    That are a few things..
    |Nico Lawsons

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    Will.Spencer is offline Retired
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    This is a real bear of a question. Asking "what number of hits we can expect and what revenue we will earn as a result" is like asking "how big is space".

    Unfortunately, you will have to make some pretty wild guesses for very important numbers:

    • Unique visitors
    • Page views per visitor
    • Revenue per visitor or revenue per page view

    These guesses should be based upon input data such as:

    • Development budget
    • Marketing budget
    • Niche
    • Competition
    • Competitive advantages / unique selling points

    In this business, it's almost always best to start small, do lots of testing, and change your strategy constantly based upon test data.

    It's no wonder investors avoid startups in this niche until they have serious traffic numbers to show as proof of concept.
    Submit Your Webmaster Related Sites to the NB Directory
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