Formula for working out the price of a website

Discussion in 'General Business' started by forumSEO, Apr 22, 2007.

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  1. #1
    Does anyone have any good formulas for working out the value of a site? I think it would be really helpful.
     
    forumSEO, Apr 22, 2007 IP
  2. alemcherry

    alemcherry Guest

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    #2
    Normally a small website is sold at 10-12 months profit. That ofcourse depends ona number of factors like cost/time for mainteneance, earning potential, size and age of the site and lot more. It is not possible to have a single formula. Mostly the price will be based on the earnings, but there are occassions where you need to look into other factors.
     
    alemcherry, Apr 22, 2007 IP
  3. UneekTT

    UneekTT Peon

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    #3
    Not so sure I agree totally.

    If I have a great domain name with a site that does not make much money, and all of a sudden the domain name or extension or both become popular within the time that I own it, then the domain/site could sell for quite a bit more than I paid to get it in the first place.

    Also, to agree with you on one note, there are lots of factors that would determine a sites "worth" but I dont know of any "formula" to get there.
    Its really on a site by site basis IMO

    Best of luck!

     
    UneekTT, Apr 22, 2007 IP
  4. w3bmaster

    w3bmaster Notable Member

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    #4
    Theres no formula

    Evry case is olmost unique

    In general 8-24 months of revenue

    But it's not a general thing ....
     
    w3bmaster, Apr 22, 2007 IP
  5. Stax_Daniel

    Stax_Daniel Guest

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    #5
    i'll have to agree with everyone else here...there is no formula that can be used...it is simply based off what the buyer is willing to pay...

    traffic, domain name, age of domain, site, design, page ranks, licensing costs, revenue, etc...the list goes on and on...

    though like w#b said above...a good starting point is between 8-12 months (going up to 12-24 would have to be a pretty big site with ALOT of potential....)
     
    Stax_Daniel, Apr 22, 2007 IP
  6. netpox

    netpox Active Member

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    #6
    There really isnt a formula. Website is only worth as much as a person wants to pay for it. It depends on the buyers interest and his thought about the website.
     
    netpox, Apr 22, 2007 IP
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