How Best To Value Adsense Websites?

Is there a standard accepted formula for placing value to a website that has some earnings from adsense that can be documented? Or really any way of generating revenue for that matter. I see some sites for sale with no revenue and some that have a provable revenue stream. What are your thoughts?

 

typically 8-12 months worth of adsense revenue is expected.

Under 6 months is a little suspicious and more is usually greedy.

 

It all depends on the quality of the site, i.e domain age, revenue/traffic history. The more it has, the more expensive the price would be. Obviously you don't want to pay 20 times of current monthly revenue for only 2 months old site...

 

My opinion is the longer the site can show traffic and revenue the better. Anything less than two months isn't better or worse necessarily, just riskier.

 

It don't think it can be documented, the 10 to 12 monthish earnings is a pretty good marker for standard dross making money... but you have to look at each website individually too, for instance it's pretty worthless if the owner spent 10 months ripping people off and now she/he wants to offload it, or if they've been a spaz and got a dropped high PR domain and put a link directory on there and other spaz's have been spazzy enough to put their spazzy links on there for $5 to $10 a pop and make it look like it's worth more than the nothing that it is.

Or, on the reverse side, it might be an uber cool domain like singles.com (no chance of that of course) and the owner is totally clueless so it would be worth mountains more than what they earned with it in 10 months.

 

As others on this thread have stated, 12 months earnings is the standard for adsense websites; however, other factors come into play. The most important factor is whether the site is considered a "passive" website. In other words, how much work is involved to maintain the website. I have seen numerous passive adsense websites with consistent earnings history sell for 18+ months earnings. The amount of worked involved to maintain the site is the primary factor I look at during website valuation. Secondly, if the site is very unique or has some kind of fancy, custom script then this could also increase the value beyond the 12 month earning mark. Lastly, its important to look at earnings consistency. If the site's revenue jumps up and down--like a 5-yr old kid at the candy aisle--the valuation will be much less. Inconsistent revenue is also a sign of inorganic traffic or sporadic promotion and marketing efforts. Anyways, hopefully this info will help you to understand how valuation is typically done. The ideas and guidelines presented here are the ones I always use when purchasing and selling websites.


BTW...you posted this in the wrong thread...

 

9-12 multiplied by the average monthly of last three months.

But it can be more depending upon the niche, the effort required to maintain the site and the potential. A generic domain could add massive value.

 

I use the 10-month revenue rule that is widely used.