Million Dollar Wiki:Page Valuation Model
How much are MDW pages actually worth?
This is a question that many people ask. Because an MDW page is a small business in itself, generating traffic and advertising revenue for our page owners, we will evaluate it as a business. There have been countless books written on valuation models for businesses, and there are many standard practices used by Wall Street.
One of the most popular practices among analysts is to value a business based on how much revenue it earns in a year. A very conservative valuation, based on a business's yearly revenue, is 10 times earnings.
Page Valuation Model
Our Page Valuation Model is simple: Ten times a page's annual earnings. It is a conservative model, and Wall Street analysts use because it factors in a very small amount of growth, growth we expect MDW will easily achieve. With MDW pages, there is no debt to take into account and no assets except the page itself. This is why we use the simple and straight forward valuation of ten times annual earnings. This model assumes you have signed up for an advertising program like Google Adsense, and are earn advertising revenue from your page.
If your page earns 25 cents a week
Lets say your page has very little content and not many visitors. You have up a single ad that gets a single click each week for 25 cents. That's four clicks a month for a single US dollar, and the page has made you 12 dollars in a year. Ten time your annual earnings would give you a page valuation of $120.
Of course, as mentioned earlier, this model anticipates growth. Sooner or later, for this model to be valid, you would have to experience growth and start earning two clicks a week on some weeks.
If your page earns a single dollar per day
Lets continue to be conservative and consider that with some good content, you earn just a single dollar per day for a year. You've earned $365 in a year, and ten times your earnings gives you a page valuation of 3,650.
If your page earns ten dollars per day
Now lets suppose you provide amazing content, and attract a decent following, and realize revenue of $10 a day. You've made $3,650 in a year, and ten times your earnings gives you a page valuation of $36,500. Some of our pages are already earning an average of $10 per day, and on a ten times earnings model, some pages on this site are already on the path to achieving a valuation of $36,500 by this model.
This model also appreciates the growing value of your page as an asset, and accounts for the fact that you can liquidate your page. We do allow you to liquidate your page, that is, we allow you to sell it off to another buyer. Some restrictions and guidelines do apply.
There is no guarantee that you will be able to find a buyer for your page. When attempting to sell your page, we cannot tell you how much anyone will be willing to pay for it.
Different advertising methods will produce differing amounts of income. MDW endorses Google Adsense as one of the best advertising programs for its page owners. Accounts are free to set up, and allow you to start earning serious revenue in very short order. The program is simple, easy to use, and very "copy and paste".
Google Adsense integrates seemlessly into MDW pages, and have produced a decent revenue for our page owners thus far.
The above method of valuation is a very simple but commonly used model for evaluating a business. However, we encourage potential page owners to do their own research, take into account the quality of the content you're going to provide, and decide if a Million Dollar Wiki page is the right investment for you.