The longest and most detailed module in the course, Module 4 is comprised of 29 parts all designed to give you a systematic approach for sizing up each investment opportunity. The Evaluate module of the LEAP system is structured by exploring 4 website deal case studies, each from a different business model. In each case study you will:
- Learn the business model success factors including how it operates, the monetization approach, and advantages and disadvantages of the model.
- Learn the key business metrics for the model.
- Learn the tools used to evaluate websites employing that business model.
- Practice the use of the tools multiple times to learn what to look for and get used to the user interface.
The case study review approach will give you the opportunity to practice the evaluations of these critical aspects of every online business:
- Traffic: sources, concentrations, positive and negative patterns, backlink quality
- Financials: ratios, red flags, missing and miscategorized expenses, completeness, opportunities
- Content: quality, uniqueness, structure, usability, age, SEO, navigation
- Reasons for selling: what to look for
- Effort: tasks, realistic evaluation of time required, skill requirements, outsource-ability
- Dependencies: suppliers, technology, pre-existing relationships, key employees, contracts, non-transferable advantages
- Legalities: exposures, considerations
- The Product or Service
- The Process
- Other Assets
You will learn and practice a risk-based method for valuation. You will practice identifying risk categories, risk degree and opportunity, to accurately ascribe a value to each website deal using a tool provided in the course. You will use a website evaluation checklist to develop an understanding of the categories and specific items to evaluate in each opportunity. More than just a laundry list of things to look for, the Evaluate modules will teach you the most important items to focus on in each evaluation so that you can prioritize the assessment process.