What is a website really worth?

Discussion in 'General Marketing' started by SeventyThirty, Nov 8, 2009.

  1. #1
    There are various sources on the web, that calculate the worth of your website.
    eg.
    Estimated Worth $2200 USD,... Daily Ads Revenue $3.00

    The problem is that none of the various web sources agree on a value.

    In the above example can you actually achieve/receive $3 Daily Ads Revenue?
    Can you sell the website for $2200 USD?

    Another source may calculate the same website, at a value at $6,000?
     
    SeventyThirty, Nov 8, 2009 IP
  2. clade

    clade Peon

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    #2
    The value of the website lies in the hand of the buyers.
     
    clade, Nov 8, 2009 IP
  3. upromotion

    upromotion Peon

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    #3
    Hi

    I was always told that the value of the website is what ever the buyer wnats to pay.

    Ofcourse though if you have a website and want a certain amount for it thats fine, though these websites that put a value on your website are rubbish nothing more, nothing less.

    Thanks
     
    upromotion, Nov 8, 2009 IP
  4. stevestuff

    stevestuff Well-Known Member

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    #4
    A general rule-of-thumb here at DP: If you want to sell your developed website, the top price you should list at is calculated be multiplying 10 months of natural income. IE: your site makes $500/mo, so you should list it for $5000 BIN.
     
    stevestuff, Nov 8, 2009 IP
  5. bluebelt91

    bluebelt91 Well-Known Member

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    #5
    I guess the biggest factor of website is its traffic then the page rank and then its value for advertisement.
    I never sold any site.. but if I am buyer I will calculate worth of a website by calculating these 3 factors,,
     
    bluebelt91, Nov 8, 2009 IP
  6. rushy

    rushy Peon

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    #6
    General rule of thumb is to multiply monthly earnings by X. X is sometimes 10, 12, 24 depending on how sustainable or desirable the purchaser views the site.

    For example, a site that has a guaranteed income of $500 per month for the last 24 months will be able to command a higher price than a site that has only been online for 3 months with revenue...

    It also depends on how well your site fits into the buyer's overall web model...you might just have soemthing that they REALLY REALLY want in which case the price is going to be higher!
     
    rushy, Nov 8, 2009 IP
  7. notepage

    notepage Peon

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    #7
    A website is worth what the buyer is willing to spend ;-)
     
    notepage, Nov 9, 2009 IP
  8. turnkeyinternet

    turnkeyinternet Active Member

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    #8
    I 100% agree with you. The value of the site is based on revenues and the overall demand. The more bidders the higher the price will go. Make a desirable website with revenue and you have a good sale potential.
     
    turnkeyinternet, Nov 9, 2009 IP
  9. PHPGator

    PHPGator Banned

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    #9
    I created a website a while back called priceasite.com (terrible design, but the functionality is good). I never really did anything in it. But in my personal opinion, if you answer the questions in its entirety on the appraisal system, you will come up with a very accurate answer. It's going to ask personal questions though, like income, proof of income, when the site was established, how much traffic you are getting, etc. It throws it into an algorithm and spits out a base price value that is what I would actually pay for it. I've done a lot of testing with it. I find it accurate with the going market value on sites as well.
     
    PHPGator, Nov 9, 2009 IP
  10. Steve Powers

    Steve Powers Peon

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    #10
    But you know that.You know how much it is worthy.Sometimes,the websites which can caculate the value of websites are just reference.
    You need not beilieve them too much.Just regard it as a estimation tool.And also the value will change time to time.
     
    Steve Powers, Nov 9, 2009 IP
  11. Tiernan

    Tiernan Active Member

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    #11
    Hello,

    As a recent buyer here of a website I think the buyers web model and overall business model will influence the value. I bought a site that I might "slot in" to my exisiting site in some manner.
     
    Tiernan, Nov 10, 2009 IP
  12. pinkretard

    pinkretard Peon

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    #12
    If the seller created a really valuable website, then 24 is not enough. Many websites don't require any maintenance at all and still can earn. In this term, why would one sell a website and not wait 2 years instead? The income would be the same and additionally after 2 years it will be earning too.

    And there may be more ways of monetisation than the current owner uses, thus the site can generate more money easily.
     
    pinkretard, Nov 10, 2009 IP
  13. letsmakeit

    letsmakeit Member

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    #13
    You may want to check out flippa.com it is a good resource for this.
     
    letsmakeit, Nov 10, 2009 IP
  14. schnisz

    schnisz Active Member

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    #14
    I have been told a few times generally 5 times its monthly earnings is a good starting point.
     
    schnisz, Nov 10, 2009 IP
  15. Traffic-Bug

    Traffic-Bug Active Member

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    #15
    The value of a website is in the perception, hands and eyes of the buyer. Some buyers may quote more than what the website is really worth as perceived by the seller. Ultimately it is a matter of tangential crossing of perceptions. That said, you could use some services on the net to calculate or estimate website value or networth. One that I know of is http://bizinformation.org/
     
    Traffic-Bug, Nov 10, 2009 IP
  16. SeventyThirty

    SeventyThirty Greenhorn

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    #16
    Thank you all.

    The rule basically is.. It's actual worth is related to it's monthy earnings.
    A site that earns $20 per month may be worth only $100, because it is basically a waste of time and effort. ( worth 5 x it's monthly earnings)

    What about a site whose NETT earnings are 20k per month?.. It would have to be worth a lot more than 100k?
    A brick and mortar business with such earnings is easily worth 25 x its monthly earnings. ie. $500k.
     
    SeventyThirty, Nov 10, 2009 IP
  17. coopersPick

    coopersPick Active Member

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    #17
    Like putting money into a car, what is the retained value of the programming time and value of a website? What is it worth? Sounds very crazy but I know a guy who thought a site is worth 100k that had a ton of errors, no revenue what so ever, and was based on garage sales.
     
    coopersPick, Nov 10, 2009 IP
  18. Getagrip

    Getagrip Peon

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    #18
    A website is only worth what someone is willing to pay for it. I think you need to factor how much traffic it gets and how much it earns into that equation.
     
    Getagrip, Nov 10, 2009 IP