Site Worth calculation

Discussion in 'General Business' started by pensacola, Aug 20, 2008.

  1. #1
    It seems that according to websiteoutlook.com, that websites with an alexa rank of 100,000 have a net value of approx 25,000 dollars.

    Do you webmaster pros agree with this approximation?

    I ask because my site is well on its way to have a higher rank than 100,000, as it has been almost doubling every 2-3 months. I believe I can replicate this website and gain a similar rank in the same amount of time.

    My goal is to make 100,000 dollars so that I don't have to ever take out college loans again.

    Is this really possible? What are the communities thoughts?
     
    pensacola, Aug 20, 2008 IP
  2. kiteguy123

    kiteguy123 Guest

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    #2
    It's hard to tell how much a site is worth just based on it's alexa ranking, you would need to know the domain, the traffic and revenue, and only then can you start to make a realistic estimation. I'm sure 99% of webmasters will agree with me when I say that the worth calculator sites are as good as useless the majority of the time..
     
    kiteguy123, Aug 21, 2008 IP
  3. scorp777

    scorp777 Greenhorn

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    #3
    If you make as mush as websiteoulook.com claims you do, then its worth the money. I know their revenue estimates are a lot higher than what people actually make.
     
    scorp777, Aug 21, 2008 IP
  4. pondlife

    pondlife Peon

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    #4

    I've got to agree - don't put too much faith in these quotes.

    Just keep on doing what you're doing with your sites as it sounds you're getting plenty of traffic. Make sure that you're converting your traffic as efficiently as possible too... If you keep doing that you won't even need to go to college! ;)
     
    pondlife, Aug 21, 2008 IP
  5. lycos

    lycos Well-Known Member

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    #5
    Most of these online site worth calculators are unreliable. They give a very crude and rough estimation and most of the time not accurate. If you intend to find out your sites actual value and how much people is willing to pay for it based on market demand, try to make a comparison with sites placed under auction and see how much people are willing to bid for.
     
    lycos, Aug 21, 2008 IP
  6. mentos

    mentos Prominent Member

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    #6
    I agree with it.
    The website value is not only determined by alexa ranking
    but it also count into the PR/backlink etc
     
    mentos, Aug 21, 2008 IP
  7. primeelite

    primeelite Peon

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    #7
    Yep there are way too many factors to just type in a few details or have the program pull the info from your website and be able to tell you how much its worth. There are factors such as partnerships with the website, alexa ranking, traffic through google analytics or other reliable source, amount of income for past 12-18 months, etc etc etc.
     
    primeelite, Aug 21, 2008 IP
  8. wasim989

    wasim989 Peon

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    #8
    i wish i knew what u guys are talking about
     
    wasim989, Aug 21, 2008 IP
  9. pensacola

    pensacola Member

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    #9
    Thanks for all your responses.

    My profit averages (over 2 weeks) to about half as much as what the calculator says.

    The traffic is mostly organic (from search engines and many niche forums). That fact would add a lot to the value, right? Or minimally?

    The following is just a hypothetical question. If a site has an alexa rank of 95,000 and earns about 15 dollars per day (from adbrite and adsense) on a biweekly average, would you buy it for 20,000 dollars? Also assume that it does have some potential for growth, although somewhat slowly (i.e. double traffic in 3-4 years).
     
    pensacola, Aug 21, 2008 IP
  10. AngelaE8654

    AngelaE8654 Active Member

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    #10
    dn Scoop gives website value information, too.
     
    AngelaE8654, Aug 22, 2008 IP
  11. live-cms_com

    live-cms_com Notable Member

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    #11
    100,000 Alexa rank is not high. Unless you're in a high earnings niche the site is probably not worth $25,000. For a site to be worth $25,000 is has to be earning $70 per day, or $35 per day if you're lucky.

    According to that tool my Alexa rank 20,000 site is worth $125,000, which it's not. It claims I am earnings $170 per day from that site, which I'm not. It's possible that I'm badly monetizing it, but I don't think so.
     
    live-cms_com, Aug 22, 2008 IP
  12. Lord Hades

    Lord Hades Peon

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    #12
    Alexa doesn't mean a thing. Most people don't even have the Alexa toolbar installed, so it's ahrd to judge the value of a site by means of it's Alexa ranking.
     
    Lord Hades, Aug 22, 2008 IP
  13. Valineo

    Valineo Peon

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    #13
    Alexa is not much important in domain name or website value calculation... the most important thing is how much someone wants to pay for your website or domain... other good thing to have is good Google PR and good traffic, also domain name itself can boost the price since it is not same if you have domain name "business.com" or "greatnewbusinessfromhome.com"
     
    Valineo, Aug 22, 2008 IP
  14. Mencius

    Mencius Peon

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    #14
    $15 per day is only $450 per month. If someone paid $25k for it they would have take almost 56 months to pay back, if the $450 is pure profit, which it is not. This is almost 5 years to pay back their investment. If you take out your salary, hosting, etc. it would actually take longer.

    Another way to look at it is that the $25k would yield a little over 21% return considering $15 per day which is not a bad return. There again, however, we are talking about $15 per day in profit.

    The biggest problem is that most websites are pretty hard to defend in a business sense. Even the big ones get beat out by upstarts, Google coming in and taking out Yahoo for instance. This, I think, is why small websites don't get the good multiples other businesses enjoy.

    There are many, many different ways to value a business...
     
    Mencius, Aug 22, 2008 IP
  15. PHPGator

    PHPGator Banned

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    #15
    Unfortunately you can't really base a sites actual worth based on just PR and/or Alexa ranking. There are some sites making quite a bit out there that are no higher than a PR1 while I've got sites that are PR3 and not making anything. The PR1 is certainly more valuable in my opinion.

    Anyhow, take a look at the appraisal system I built a while back at http://www.priceasite.com. It is free, you input some information to figure out your worth. I have done it based on what I think you should and could sell your website for. Some argue that you could potentially sale for more than what is listed, but I think it is about the market standard when you look at SP auctions.
     
    PHPGator, Aug 22, 2008 IP
    jkjazz likes this.
  16. oxidati0n

    oxidati0n Peon

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    #16
    So far by the actual ones I've seen is DNScoop because they don't mark by stuff like that - they are better for domains (and Estibot) because of Keywords. :)
     
    oxidati0n, Aug 22, 2008 IP
  17. Kwaku

    Kwaku Well-Known Member

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    #17
    See my sig; it is quite accurate for traffic/ad sites.
     
    Kwaku, Aug 23, 2008 IP
  18. pensacola

    pensacola Member

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    #18
    Just wondering, do you think your site is worth 6,112.29?
     
    pensacola, Aug 25, 2008 IP
  19. slaydragon

    slaydragon Banned

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    #19
    hi, i do not agree.. alexa ranking does not mean anything..
     
    slaydragon, Aug 25, 2008 IP
  20. live-cms_com

    live-cms_com Notable Member

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    #20
    Google's Alexa rank of 2 means they are the second most popular site in the world, that means a lot to me. A rank of 10,000 means the site is roughly the 10,000th most popular in the world.
     
    live-cms_com, Aug 25, 2008 IP