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How do you value a website?

Discussion in 'General Business' started by maggorz, Jun 19, 2008.

  1. #1
    Thinking of selling the site on Sitepoint as I see the prices there are always quite high and thus the best place to sell a site??

    So it's currently making $30 per day from AdSense alone = $900-$1k/month... it has 1 ad-unit per page only. It has a forum, gallery, 40+ page unique content related to the niche and in all that I get aboout 40k pageviews a day.


    How much do you think it's worth, and how do you go about evaluating it so I know for future websites?
     
    maggorz, Jun 19, 2008 IP
  2. George Pierce

    George Pierce Guest

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    #2
    I understand that one year's revenue is a good price point. If you have a mailing list, then add a year's revenue from list as well. This is just a rule of thumb, so if you feel it is to high or low adjust accordingly. If you can, research the market (depends on how unique), to find comparable sites for sale. Uniqueness should add to your site's value. Sounds like a great site, I hope you are well rewarded for it. Good Luck.

    Much Success,
    George Pierce
     
    George Pierce, Jun 19, 2008 IP
  3. World_Peace

    World_Peace Well-Known Member

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    #3
    10 -12 months revenue is what you should be looking forward for when you are selling your website.
     
    World_Peace, Jun 20, 2008 IP
  4. mentos

    mentos Prominent Member

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    #4
    mentos, Jun 20, 2008 IP
    netx likes this.
  5. yew123

    yew123 Peon

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    #5
    Generally, people take 1 years' revenue - but you should increase the value of your site by taking into consideration the backlinks, alexa ranking, pr, any extra articles you will be giving to the buyer, any other content, graphics, etc. See if you can get a better price - maybe throw in some consulting to help advise the buyer to fully utilize the value of your site. Try to up-sell some stuff too?
     
    yew123, Jun 20, 2008 IP
  6. Sam 735

    Sam 735 Well-Known Member

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    #6
    You can sell your site via auction. It has a lot of benefits!
     
    Sam 735, Jun 20, 2008 IP
  7. allout

    allout Prominent Member

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    #7
    To be all honest, there is no set formula when selling a website. It depends on many factors. I wrote an article about the value of a website on my blog on my blog. It boils down to what the buyer is willing to pay for the site. Earning are important but that is just a small part of the equation.
     
    allout, Jun 20, 2008 IP
    netx likes this.
  8. italiancalcio

    italiancalcio Peon

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    #8
    it all depends .... the domain alone could be worth good money
     
    italiancalcio, Jun 20, 2008 IP
  9. Barefootsies

    Barefootsies Well-Known Member

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    #9
    HOWWWWWWWWWWWWWWLING LAUGHTA

    Is this a joke? No serious webmaster, or person doing online business uses those things. You should know how to evaluate a website properly if you have been in this game for any length of time.

    Pointing to sites like that show just how LITTLE you know.
     
    Barefootsies, Jun 20, 2008 IP
  10. Barefootsies

    Barefootsies Well-Known Member

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    #10
    Wrong.

    There are a lot more factors that go into evaluating web properties.

    Domain.
    Type of site.
    How long has it been around.
    Type of revenue.
    Maintenance versus profit.
    Time invested daily, weekly, monthly.
    Type of traffic/referrals.
    Number of links and age of those links.
    Memberships, e-mail lists, etc.

    Most importantly proof to back up all claims.
     
    Barefootsies, Jun 20, 2008 IP
    kentuckyslone likes this.
  11. Livehosting

    Livehosting Peon

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    #11
    Well you can value it based on Traffic / Earnings and trusted sites such as Dnscoop will estimate it for you.
     
    Livehosting, Jun 20, 2008 IP
  12. MoneyMoose

    MoneyMoose Peon

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    #12
    If you're interested in those idiotic online calculator type things, I wrote a review of various website valuation calculators that you might like ;)

    They're not very accurate but they're damn fun to play with.
     
    MoneyMoose, Jun 20, 2008 IP
  13. curiouscats

    curiouscats Peon

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    #13
    How often does ad revenue remain/decline/increase over what was posted in the auction in people's experience? It seems to me many auctions only post 1-2 months of income. It would stand to reason, to me anyway, that if you were looking to sell, if you just wait until you best month and then show the site as earning $50/mo it is likely to fall on average. But I don't know if that is what really happens. Any insights from those that have be buying sites for awhile?

    Let assume no changes. I would imagine if you invest time... you should be able to improve the site, get more traffic...
     
    curiouscats, Jun 22, 2008 IP
  14. Barefootsies

    Barefootsies Well-Known Member

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    #14
    It typically DROPS.

    That is why it is key to get ALL the information you can. Most of the time, they leave out little things like their adword or yahoo campaigns. Or that they have a network of 10-20 other sites sending traffic to the one they are selling, or other such things.

    It's not to say that ALL are pump and dumps. But there are many of those, and typically, they are sites with less that 6 months of stats, and time invested.

    2 cents.
     
    Barefootsies, Jun 22, 2008 IP
  15. Telent04

    Telent04 Peon

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    #15
    Why would revenue be considered? It should only be profit, taking all costs into account.

    There should be an easy formula, something like: 1 year profit - number of hours to run per year X $15/hr. Then there is an adjustment for such things as potential, inventory, infrastructure, etc.
     
    Telent04, Jul 10, 2008 IP
  16. TrafficSales

    TrafficSales Peon

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    #16
    TrafficSales, Jul 10, 2008 IP
  17. e521

    e521 Peon

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    #17
    sitevaluecalculator dot com

    "The estimated value of google dot com is: $1,550,001,617"

    quite accurate.
     
    e521, Jul 10, 2008 IP
  18. ja1myn

    ja1myn Banned

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    #18
    I'm going to send you a PM.
     
    ja1myn, Jul 10, 2008 IP
  19. br3adman

    br3adman Active Member

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    #19
    you look at it until you get sick
     
    br3adman, Jul 11, 2008 IP
  20. TurnkeyGiant

    TurnkeyGiant Greenhorn

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    #20
    I have a unique website value calculator script with clean design and accurate result for sell PM me for Demo
     
    TurnkeyGiant, Mar 11, 2010 IP