How do You Evaluate a Website's Selling Value?

Discussion in 'General Marketing' started by Tudi, Jan 3, 2008.

  1. #1
    I was wondering if there's a sort of rule or math formula that you can go by when calculating how much you should sell your site for. How do you take into account Unique Visitors and Revenue?

    I have a website with around 20,000 uniques per month that makes between $120 and $150 from AdSense. How much would you honestly evaluate it from this point of view?
     
    Tudi, Jan 3, 2008 IP
  2. yogesh sarkar

    yogesh sarkar Well-Known Member

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    #2
    Normally you can expect any where between 12 months to 36 months revenue as the selling price, though a good domain would command a premium.
     
    yogesh sarkar, Jan 3, 2008 IP
  3. Ichibanda

    Ichibanda Peon

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    #3
    Yogesh Sarkar is pretty much right on the ball. the most common denominator is 12 times the monthly earning. You can sometimes get more or less depending on the domain, how long the sites has been earning that much and your ability to proof earnings. Having a channel for the site in adsense can really help prove how much you are earning. Also screen shots of your visitors is helpful. Your site should go for around 12,000 to 20,000 depending on factors already listed.

    The one thing you can never know exactly is the real price is whatever someone is willing to pay. While the 12 month metric works for a starting it can go for way more or less depending on the market and people at the time.
     
    Ichibanda, Jan 3, 2008 IP
  4. t.sealey

    t.sealey Peon

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    #4
    Lot of factors.
    To start nobody pays 12 months revenue.
    Average is around 8-10..

    Sitepoint's classified is a good place to do research.
     
    t.sealey, Jan 4, 2008 IP
  5. sweetfunny

    sweetfunny Banned

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    #5
    That's true, to get over 12 months revenue there needs to be something special about it such as untapped revenue opportunities or the site has obvious potential for growth etc.

    I've got a site that gets 60,000 uniques and does $1,200 per month in revenue and i'd sell at the drop of the hat for 36 months revenue as stated above.
     
    sweetfunny, Jan 4, 2008 IP
  6. sakto

    sakto Active Member

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    #6
    Or you can use this site www.dnscoop.com to make an estimate how much your site is worth.
     
    sakto, Jan 4, 2008 IP
  7. mikey1090

    mikey1090 Moderator Staff

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    #7
    content
    design
    backlinks
    SERPs
    traffic
    revenue
     
    mikey1090, Jan 4, 2008 IP
  8. Tudi

    Tudi Peon

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    #8
    Thanks for the tips guys. Sakto that's a very useful site you gave me there, thanks. But the fuckers only rate my site as $250 :) It would be useful if they'd let you input your average revenue per month and calculate with that as well.
     
    Tudi, Jan 4, 2008 IP
  9. t.sealey

    t.sealey Peon

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    #9
    Your website is only worth what someone is willing to pay.
     
    t.sealey, Jan 4, 2008 IP
  10. WebsiteMarketer

    WebsiteMarketer Peon

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    #10
    Yea you can't go off that at all. That site basically just allows you to see all the stats about your site in one place. No program can accurately rate a sites value.

    My site gets under 1000 uniques, has no revenue (because it isn't live yet), but has lots of backlinks and a decent PR and it's valued higher than yours right now even though people would pay way more for your site.

    I'd recommend checking out listings of other sites in SitePoint or here and divide the price by the unique visitors and see what that averages out among a handful of sites and then also compare it to the revenue per month.

    If you did that for 10-15 sites around your sites range that have recently been sold you will be able to come up with a great estimate.
     
    WebsiteMarketer, Jan 4, 2008 IP
    Tudi likes this.
  11. rena

    rena Peon

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    #11
    Normally the site value calculation is 1 year revenue. that means we can calculate 120 * 12. But your site have good traffic then try to earn more money insted of selling
     
    rena, Jan 4, 2008 IP
  12. Tudi

    Tudi Peon

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    #12
    www. epic-warcraft.com

    This is my website. Stuff that can get the price down:

    - Not all content is finished
    - Table design
    - Site age is only 6 months

    Stuff that can get the price higher:

    - Fastly increasing traffic (I have an average of 1,200 uniques for January, opposed to 900 in December and around 700-800 before)
    - Possibility to cash in on those visitors with clickbank WoW guides, which are a gold mine from what I've heard (I can't use clickbank, since they don't offer the services in Romania)
    - High SERPs for many 500,000+ results keywords
    - Increasing no of quality IBLs
     
    Tudi, Jan 4, 2008 IP
  13. mamjap2004

    mamjap2004 Peon

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    #13
    Thanks WebsiteMarketer, that was a very helpful tip.
     
    mamjap2004, Jan 4, 2008 IP
  14. mjereb2

    mjereb2 Peon

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    #14
    Hey guys, dont forget about goodwill.

    I would never sell my site for 12x revenue. 3 years of revenue at least. Not to forget that the one who is buying your site is probably about to double or triple the revenue. So you should multiply the price. And here is also the goodwill.
     
    mjereb2, Jan 5, 2008 IP
  15. Tudi

    Tudi Peon

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    #15
    Ok so from what I gathered here, my website www. epic-warcraft.com is worth around $2000 currently? What if I create a community around it, finish all the content (50 more guides), increase the uv/day count to 2,000 and only sell it when it's 1 year old at least?

    Basically, what I'm asking is this:

    Should i try and sell it now, or should I invest more time/work in it and try to sell it after the above mentioned conditions are met? Thanks for your replies.
     
    Tudi, Jan 5, 2008 IP
  16. primeelite

    primeelite Peon

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    #16
    I have actually brokered some site deals in the past and we went at 6 months revenue, price of domain, and then added in a small extra amount of money for amount of time spent developing anything on the website that is not readily available to be bought such as custom coding etc if there is any to basically license it to them.
     
    primeelite, Jan 5, 2008 IP
  17. andyjames28

    andyjames28 Banned

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    #17
    i was talking to someone the other day and he said when the site is new he wont pay anywhere over 4months revenue for it!
     
    andyjames28, Jan 5, 2008 IP
  18. ArticleRus

    ArticleRus Peon

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    #18
    I would say you polish it another 6 months!
     
    ArticleRus, Jan 5, 2008 IP
  19. Tudi

    Tudi Peon

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    #19
    I have around 50 guides on it so forth. They're unique, useful guides that would generally cost around $15-20 apiece at least. People are linking them naturally because they find them useful so I reckon that should be calculated in the final price. I'm still totally lost at to what I should charge ^^
     
    Tudi, Jan 5, 2008 IP
  20. Working Nomad

    Working Nomad Guest

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    #20
    Put it up for sale at auction and the market will tell you what its worth.
     
    Working Nomad, Jan 5, 2008 IP