How do you appraise a domain with Income? Is there a Formula?

I'm wondering if there is a commonly accepted formula for a sites appraisal based upon the sites current income. ie. monthly income X ?Months (how many months ?) = valuation. I am just trying to value some low income sites that I have had offers on. Thanks in Advance...

 

10-12 months earnings equals a fair price in most cases.

As with any generalized rule there are exceptions above and below.

 

Thanks for the response, plus rep. Do most of you agree with this?

 

I think 10 months is better to go by. I sold a website I had for over a year and based it on the 10 months principle.

 

Why 10 months as opposed to 12? Is the level of income a determining factor? thanks for your input, +rep.

 

I'm not really sure but before I was going to sell my site, that's what the majority said.

The overall average of revenue over the 10 months was the major factor in determining the sale price. I basically took that average times 10 and had a price to sell for.

 

Average monthly income X 10 definitely sounds reasonable. I know that, if I were interested in purchasing a site, I would probably make that deal.

 

if it is a parked domain i think the price can even range from couple of months to even five, six years depending on the source of traffic (search engines, backlinks, direct typeins, typo, misspellings,,,) and other factors like end user sale potential, tm problems,,,,

 

which source of traffic would cause you to multiply by 5 or 6 years? type in?

 

no, I totally disagree! I'd go with a 3 year average income ratio.. Use the low average for the three years... even if the site is only a year old, multiply by 3 after costs... the calculated REAL PROFIT from that site would be its market worth... however, try buying for as little as possible... and let the seller try negotiating it up. Also, remember to research and see if the revenue is a scam or not... where does the profit come from? how is the cost calculated? Is the domain structurally developed, simplicity to cause, and ease of access? One year are for the down-and-out domains... the production efficient with a future are calculated 3 year estimated average low profit.

 

typeins with end user sale potential, common generic misspellings in growing niches,,,

 

depends but the best bet would be 11 months compared to 10 month. The extra month is for Paypal fees.