Tuesday 26 August 2014

Website Advertising Revenue: A Good Alternative for Loan

Revenue forecasting is very helpful when you are going to buy or sell websites and domain names. Website advertising revenue that you can get in future is very helpful in website valuation. As the entire process is much complicated, it would be great if you hire a company to finish this task. 

Leading companies, such as OAREX, use their proprietary algorithms to predict future advertising revenues that are based on past advertising revenue growth rate and simple moving averages. The revenue forecasting can be helpful in internal budgeting, project management, creating pro-forma financials, assisting in valuation. 

Online advertising revenue model is becoming huge popular these days. If your website has advertising revenues, you can get cash against your future advertising revenue. Company like OAREX uses proprietary valuation algorithm to generate cash offers for future ad revenues. OAREX purchases next 3-9 months worth of future advertising revenues of its clients in return of financing them. This service is different from taking loan from bank, as one does not need to go through credit check to get finance. The capital provided in this method is largely based on the expectancy that clients will continue to earn advertising revenues on their websites. Therefore, OAREX requires at least six months worth of track record of advertising revenues before giving finance.