George wrote:
> At 10:33 PM 8/25/98 -0700, Cyberspace Publishing so eloquently stated:
> >$85,000 for a small website in the US!!!!!!!
> >
> >If I was offered $8500 for a small website, I'd
> >be tickled pink!
> >
> >Who's getting that kind of prices - nobody I
> >know! Or, better yet, who's PAYING those
> >kind of prices????
> >
>
> Oh yes. Folks are buying and selling at those prices. I was
> quoted in an article earlier for the NY Law Journal about the
> buying and selling of domain names, as we helped a couple of
> clients do so. Domain names by themselves don't have as much a
> value as a total business. But they are selling. I have a
> client now who was offered $300k and $500k and turned down both
> offers. He will take $1 million.
I, too, know someone who was offered $500k just for a domain name. He also
turned it down, for varied reasons, price being one of them. He probably
would have sold for $1mil.
> The site generates $96k a year
> in ad revenue and far more than that in new business. We have
> another client who was just paid $600k for a site that has only
> been up 10 weeks! Scripps Howard bought.
I think you're saying that the purchase item was an already completed and
running web site, lock, stock and barrel. The $600k was not for the site
development, but for the site as a finished product, correct? Not that it
really matters. Plain and simple fact, site development prices can range
from $19.95 to the stratusphere. $85k for a small site in the SF area does
sound like a lot, but I recently heard a tale of a person who was paying
$2500mo to host a low traffic site. He just didn't know any better and the
agency that developed his site didn't educate him. He ended up moving the
site to another hosting co and hired another developer. Fact is, though,
that the company he _was_ working with is a fairly high-profile company who
must get that price from many clients. I think that the companies that
contribute pricing data to the survey mentioned above include many "high
profile" web development firms. I don't doubt the data, but believe it is
skewed toward the high end. Makes a nice resource for us developers, though:
Customer: "How much will it cost"
Developer: "Let's take a look at typical prices (fires up:
http://www.netb2b.com/cgi-bin/cgi_wpi_archive/wpi/98/06/01/article.1
I can concur that prices for sites keep climbing, which certainly is great
news for us, eh? As customers desire more sophisticated web applications,
costs (and our earnings) rise.
Jack
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