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How to determine a website's value?

Discussion in 'General Business' started by Zhono, Jul 16, 2011.

  1. #1
    Can't really find any (recent)information about this. How do you go about deciding how much your site is worth? The only decent article I found(which was about 6 years old) suggested taking the yearly revenue, deducting the operating costs, and multiplying by 2 or 3. While that formula might work in some cases, I figure it's probably a little more complicated than that. Or is it? Any advice here?
     
    Zhono, Jul 16, 2011 IP
  2. GrantDraper

    GrantDraper Active Member

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    #2
    There is no way to value a site realistically. I might pay 20 months revenue, someone else might see that they could add huge amounts of value to their business because of the site and offer you 40 months revenue. That being said, at the time you sell, the only people that see it/prepared to buy it, might only offer 10 months revenue.

    It's sort of like starting ebay auctions at 0.99. If you have a product that's 1000.00 RRP and 1 bidder, it will sell for 0.99; simple. If you have 10 bidders, it could go £750 or more!
     
    GrantDraper, Jul 18, 2011 IP
  3. sumdor

    sumdor Active Member

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    #3
    Try websitesoutlook.com
    If you need special assistance contact them.
     
    sumdor, Jul 18, 2011 IP
  4. w3bmaster

    w3bmaster Notable Member

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    #4
    Monthly income multiply by 10-24 sometimes even more
     
    w3bmaster, Jul 18, 2011 IP
  5. Zhono

    Zhono Greenhorn

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    #5
    Thanks for the responses guys. I guess the saying holds true: It's worth whatever someone is willing to pay for it.

    I'm just hoping to figure out a good starting point. I've been building websites for a long time now, but I've never sold any of them. I don't want to sell a site at too low of a price just to find out I sold way too cheap.
    I'm sure that's a problem that many people run into when they start out, but I'm hoping to avoid it as much as I can. I guess monthly revenue x10 is a good place to start a price at, until I get better at judging the real value of a site.
     
    Zhono, Jul 18, 2011 IP
  6. Intermg

    Intermg Active Member

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    #6
    Usually 12-18 months revenue. But this isn't reliable anyway, like any other estimation method. Best of all is to build your very own website. :)
     
    Intermg, Jul 18, 2011 IP
  7. The Elite

    The Elite Greenhorn

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    #7
    Traffic, niche, back-links and click rate/revenue.
     
    The Elite, Jul 19, 2011 IP
  8. _Nexo_

    _Nexo_ Peon

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    #8
    Website value is decided only when it´s sold, atleast that´s my opinion.
    You could get an idea just by looking at the revenue, ranking, traffic and etc.
    But the only true way to find out, sell it. Sometime it has more value then you think, sometimes it has much lower. ;)
     
    _Nexo_, Jul 19, 2011 IP
  9. jhardy2008

    jhardy2008 Peon

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    #9
    websiteoutlook.com provides you same information
     
    jhardy2008, Jul 19, 2011 IP
  10. Albert L.

    Albert L. Greenhorn

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    #10
    Interesting. This is definitely a good post on judging developed websites. Websites are like developed properties with value in them.
     
    Albert L., Jul 20, 2011 IP
  11. yhe

    yhe Active Member

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    #11
    that's depinds! what kind of websites or domain do you have! for exemple pizza.com! with we are talking about revenue you can multiply that with 1000 and would not get the corect value ( was sold a year ago or so for 3.000.000$ if i rember correctly) !

    :cool:
     
    yhe, Jul 22, 2011 IP
  12. cronik

    cronik Well-Known Member

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    #12
    It depends on so many things, such as traffic, revenue, niche, etc. Some sites have built up a genuine social media presence where the site has become extremely popular without the need of SEO, these sites can be worth even more. Revenue and traffic are the biggest factors though....
     
    cronik, Jul 12, 2013 IP
  13. CheapDotComs

    CheapDotComs Member

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    #13
    1. revenue
    2. revenue
    3. revenue potential
    4. traffic
    5. revenue

    or to say it differently, it's 95% about the revenue, the history of the revenue and the future potential of the revenue
     
    CheapDotComs, Jul 12, 2013 IP
  14. jbbmx

    jbbmx Active Member

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    #14
    it is all based on what someone will pay for it, if you buy a website (or even domain) that someone really likes and wants then they will pay over the odds for it and could give you a large amount for it. unless that happens it will be based on your revenue from ads and alike.
     
    jbbmx, Jul 12, 2013 IP