Estaminating the worth of a website

Discussion in 'Appraisals' started by flOid, Jan 29, 2006.

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  1. #1
    Is there any way to roughly estaminate the worth of a website on the basis of it's monthly income? I'm asking because I'm curious to know what my site is worth, although I'm never gonna sell it.
     
    flOid, Jan 29, 2006 IP
  2. texisman

    texisman Well-Known Member

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    #2
    Simple answer would be it's worth however much your making from it.:) If it has potential to do better than it's obviously worth more.;)
     
    texisman, Jan 29, 2006 IP
  3. mjewel

    mjewel Prominent Member

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    #3
    There is a more than just monthly income, but if you deduct a fair hourly wage for however many hours it takes to maintain the site, deduct all other expenses, a ballpark figure would be 8-12X the monthly net. If you have more than a year of steady or increasing revenue, it might have a somewhat higher multiple. Seems most sellers always claim a site can do more, but historical numbers is what is looked at for a revenue based valuation.
     
    mjewel, Jan 29, 2006 IP
  4. stumpyPete

    stumpyPete Peon

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    #4
    I think that makes it priceless, right? ;)
     
    stumpyPete, Jan 29, 2006 IP
  5. Nanofied

    Nanofied Guest

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    #5
    When I buy sites, I base it of of the sites profit for 6 months, content, and the traffic it is bringing in. I personally don't believe in the "A site should be sold for 12 months profit". I think thats a load of crap :)
     
    Nanofied, Jan 30, 2006 IP
  6. mdvaldosta

    mdvaldosta Peon

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    #6
    I agree with this, if your purchasing a site soley off of income. Other things could increase the value, such as PR, traffic, age, demographics, name, etc. but for 90% of the cases I agree with mjewel.
     
    mdvaldosta, Jan 30, 2006 IP
  7. eXe

    eXe Notable Member

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    #7
    Factors to consider:
    • Most important: TRAFFIC.
    • Source of traffic
    • Current revenue

    If the source of traffic is organic search engine rankings & the links are mostly natural (not paid for) then it's so much the better.

    Also to consider:
    Other possible means of revenue generation not currently exploited:
    • Pagerank of the site. This will enable you to sell text links.
    • Pageviews/unique visits ratio. The higher the better for CPM based publishing programs.
    • Registered members who have provided their email address. You can send them newsletters & sell ad-space on the newsletter.

    • The domain name.
    • User attraction, percentage of returning visitors.
    • Brand/catch phrase if any.
    • Site navigation.
    • Number of members, if any.
     
    eXe, Sep 24, 2006 IP