Website Worth? How to determine?

Hi,

I am looking to sell one of my online assets. Its is getting decent traffic (200 a day) and is making some $$ (but not much).

Now how to determine the value? I used a website as MonsterCalc, but I think these are not accurate, what do you think?

How should I determine the value?

 

Your monthly revenue times 12 is a very good indication. Especially in times like this people buy sites based on revenue, not on traffic.

 

12 x average monthly revenue is what people seem to be getting for sites with revenue. But there are other thing to take into consideration. People buy sites because of the name, or that it fits into what they are doing or trying to do online. I know a guy who builds and sells sites weekly and they are not generating revenue. But they are nice looking sites with good domain names.

 

Apart from revenue a site can also be sold based on potential, you just need to be able to explain clearly the potential of your site

 

Those telling you 12x monthly revenue are actually being a little bit optimistic.

While 12x monthly revenue is possible, it all depends on other factors such as the sustainability of revenue, historical revenue, trends, as well as potential and, most importantly, the amount of work involved in maintaining the site.

The "industry average", so to say, is currently ~10x monthly revenue, with some sites selling for up to 15x and others for as little as 3-4x.

If you share a bit more details with us then I'll be able to take a closer look and give you a more in-depth valuation.

 

Well, 12x is a nice estimator. But for 200 something (what?) per day, even uniques and rev based on some kind of CPM/CPC model, I would wager you won't be getting more than $100, maybe a few $100 for it. 200 uniques are easy to get on most sites with some effort and then it brings some money automatically, but very little, as you say.

 

It has many factors e.g. domain name (if it is an ordinary one or a premier domain), age of website, PR, backlinks, work involved in maintaining the site, revenue, unique visitors/day, pageviews, demographics of these visitors. But yeah if you want to go for a rough estimate, I'll suggest you to go with 10x monthly revenue. Ultimately you could get more/less than that but it gives you some idea atleast.

 

12x seems to work if the site is fairly operational and making $$$. Turn key is supply & demand and how well you can sell the idea..

 

The value of a website can be determined by:
- Domain: A keyword domain/An aged domain could be worth more than some random name/newly registered name.
- Content: A site with 100 of unique and high quality articles could be worth more than a site with 100 pages of duplicated content.
- Traffic: A site gets 500 unique visitor per day could be worth more than 50 unique visitor per day.
- SEO Ranking: A site ranks top for several keywords could be worth more than the one does not.
- Income: An autoblog generates $1K per month may be sold for $2K whereas a static content website with 2-3 year proven earning records (from AdSense only) could be sold for more than 30x.
- Pagerank of the site.

It is to your disadvantage if you value your site solely based how much money it generates. If you have a quality site, you can DEFINITELY sell for more than 12x income (A LOT MORE). How much you would get for your website would depend on whether you could find the right buyer for it.

 

I agree with bryanon, 12 times is a little exagerated. Usually sites are sold for 5-10 times monthly income, it depends on many factors. Check out Flippa, see what people offer for your site.

 

Thanks for all the tips, 12 times seems very reasonable I think when you talk about bigger numbers. Some sites on flippa I see going for over 24 times monthly rev, what about that??

Good list currenz

 

thanks for the shearing but one thing i will add in the above is that in case of buying you have to judge it by your self

 

Of course, there is always one more thing. My advice may - or may not - make you rich, but if you want to impress the buyer (it worked like magic for me!) you may want to try http://checkyoursitevalue.com. (Try it for yourself, first; only after you like it share the result with a prospective buyer.)

 

It is worth just what people is willing to pay for it .

 

Depends if you have a average domain and small monthly profit it could go for 5-8x your monthly profit though if it has a good design and potential to grow , it could even go for 12x or higher.

 

The problem with sites with low traffic and income for any buyer is that it's just a gamble.
Even moving a site costs time and money.
If you have got the site up to 200 visitors a day - why not raise it to 5000 a day before you sell it?
Or has it reached it's limit.
How many keywords does the site target, are they on the first page of google and how many monthly searches are there.
An established site with a meaningful number of visitors and regular income is much easier for anybody to value - and you overcome the $25 barrier that Flippa will charge you for selling it.

 

I'd say 10-12 times your monthly revenue, provided that revenue has been consistent or growing for 6 or more months.

 

I think it all depends how much the website can make per day, per month and per year and how many efforts require to make it.

It is very important how much can it make and how many efforts require to maintain it.

 

You should never value a business based on revenue/ turnover/ income. You would always base valuation on Profit (revenue - costs) as I could easily blow £10,000 on PPC and only get £1,000 of income. My site certainly wouldn't be worth £12,000!

If you say its 12x monthly why not just say its Annual?

For a basic site you would be looking at somewhere in the region of its annual profit, if its being growning recently (assuming it isnt seasonal) you may use the last couple of months and gross it up to an annual figure.

On top of that you could add value for any assets it may own (eg the domain name) and likewise may have to deduct any liabilities that go with the site. The price could also be flexed if there was a strong/ viable business plan that the new person could take over, eg if you have a site on the 2012 olympics then you could argue its future earnings will be much bigger as the games get closer.

At the end of the day, as with anything that is for sale. It is only worth what someone is willing to pay for it.

 

^^agree!

also be able to prove that you have the revenue that you are claiming, this will make it easier for people to want to trust you