Value of #1

Out of interest, if a site was #1 for a particular keyword/phrase in a niche market that had 3600 search queries per month (according to Google keyword tool) and you had a potential buyer for that site. What price would the site be worth?

To give you an idea of competition, there are about 8-10 other businesses that are in the industry who are rivals for the same keyphrase.

Sorry, I can't really be too much more specific, as I have a nemesis from my past (in these forums) who likes to shadow everything I do.

Thanks in advance for your advice.

 

Really? No one here has a clue on this?

 

Lets say you rank #1, 41.2% of 3600 is the average traffic you will get, so that's 1483.2, But let's take it as 1483. Moreover, let's say you are monetizing your site with adsense, and the average click pay for that keyword is $1 (It could be more or less depending on your keyword, you have to research that, am just taking it as a constant for the sake of it) and you're average click through rate on adsense is 5% = 74.15 clicks, let's take it as 74, and since your average click pay is $1, that equals $74 per month.

Now if you want to sell the site, you might have to give some proof to buyers so that they will buy it, but usually they go to 10-14 times their monthly earnings, that's $740-$1036. Could be more or less depending on your buyer or keyword.

Again, this is just an example, you have to research the average click pay and the click through rate. That's if you're promoting with adsense.

 

It is very hard to put a value on that ... it probably depends on the turnover and profit margins?

 

With the type of business involved, one sale generates a minimum of approx $10,000 and an absolute (non-typical) max of $50,000.

So, if they had a very poor month and only had one sale, they are looking at between $120,000 to $600,000 per year. Knowing the owner of the business personally, I would be surprised if he didn't have several 'walk-in off the street' sales per week.

 

thanks lonewolf ... what about if the company had a gross turnover of around 40,000£ per month? Any ideas of the value?

 

Its quite simple. No one would pay you more than what that site could make in twelve months, i.e. [your earnings right now/month] x 12 = Value of your Site.

 

Thanks xubair. So, I am looking in the order of $500,000 to $1,500,000 then.

Thanks for you advice.

 

Generally speaking, the number one spot takes clicks from a minimum of 50% of the total number of searches for a keyword term. So if you are aiming for a keyword that has 100 searches per month, the number one spot will get 50 of those. There are some data around for the value of being number one, you have have to Google-fu a bit.

 

It depends on the income you are generating from it. Suppose you get 1000$ from it every month, you may sell it for something around 15000$