Estimating Value

How is a site valued ? Obviously traffic and income,.....but how much does growth rate factor in ? In my area if a rental house is renting for $500 a month that house could expect to be in the $70,000 - $75,000 range........give or take. If a website brings in $500 a month would that be a good comparison for value ? I would think the site would acually be worth more given lower overhead and general maintenance issues. At the end of the day I understand that the decision to sell anything is up to the individual but just looking for some thoughts on the issue from some web oriented people.Thanks,Aaron

 

It depends on a few things - there have been some previous threads with a lot of info, though a re few things to consider are:

- What revenue over the next 12-months can it generate?
- Does it have room to grow, or in a declining vertical?
- Can it be further monetized (might not make a difference to the overall value, but might make it more attractive to buyers)
- Do you have customers or permission marketing email lists?

There's no simple formula for website valuations - and it also depends on how well you can 'sell' the site!

Good luck!

 

Thanks for the response.How much is a going rate for an email list ? For example what is 100,000 emails from registered users worth ? Or does that vary as well?

 

To add to web3k's response which is fairly extensive in itself, I just wanted to point out that maintenance is another consideration. If a site is high maintenance to run, obviously it's a deal breaker for many buyers and that would influence the final sale price.