How do you value a website's value?

Discussion in 'General Business' started by NetworkTown.Net, Aug 10, 2009.

  1. #1
    Hey,

    I want to know diffrent peoples views on how you value a websites value ($$).

    Here are some factors people generally use;

    * Revenue
    * Traffic
    * Domain name
    * Content

    What else do you look at before buying a site ?

    ---
    Mods please move my topic if this is not the correct forum for it i didnt know which forum it would belong in.
     
    NetworkTown.Net, Aug 10, 2009 IP
  2. mudassar anwar

    mudassar anwar Well-Known Member

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    #2
    Hi,

    Use Dnscoop.com for site valuation. It provides you all important factors for a site valuation like

    Validity of PR
    Alexa Rank
    Number of Backlinks
    Domain Age
    Site Monetization Tips
    Finally Site Worth in $$$

    Regards
    Mudassar Anwar
     
    mudassar anwar, Aug 10, 2009 IP
  3. blackfish

    blackfish Guest

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    #3
    I think it simple, it can in order to more and more persons bring useful things, the data can't explain everything
     
    blackfish, Aug 10, 2009 IP
  4. macG

    macG Well-Known Member

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    #4
    Depends on how much revenue it is currently generating.
     
    macG, Aug 10, 2009 IP
  5. mentos

    mentos Prominent Member

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    #5
    I would say the backlink and the PR of the website.
    Coz if both of it is high then the SERP will be high too for higher exposure.
     
    mentos, Aug 10, 2009 IP
  6. ISF

    ISF Peon

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    #6
    depends if it's an established site then revenue, profit, traffic, etcetera, if not then things like design and complexity, content.
     
    ISF, Aug 10, 2009 IP
  7. FBZ

    FBZ Active Member

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    #7
    Yes, it depends on the niche, and the person wishing to purchase it.
    I, personally value a site for its organic traffic, and its origin. Income is a factor too, but some people do not know how to properly market a website, so they get decent traffic but $0.
     
    FBZ, Aug 11, 2009 IP
  8. dnswasp

    dnswasp Peon

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    #8
    I have seen it mentioned many time that the valuation of a web site is usually based on 6 - 10x the monthly income. I think its only what someone is prepared to pay for it and how much you value it yourself, the rest is negotiation
     
    dnswasp, Aug 11, 2009 IP
  9. Norebbo

    Norebbo Active Member

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    #9
    I agree, 100%. Monthly income is only part of the equation - if you've got a site with a LOT of exclusive content that took years to create, you probably would be smart to figure that into the price as well.
     
    Norebbo, Aug 11, 2009 IP
  10. gamblinginvest

    gamblinginvest Member

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    #10
    Revenues, but also how the revenues are generated, earnings from PPC will get you a lower price than say affiliate revenues and flat fees advertising deals.
     
    gamblinginvest, Aug 11, 2009 IP
  11. theapparatus

    theapparatus Peon

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    #11
    Agree also but 6-9 months of income is just a starting point. Goes up and down from there. Factors like PR, upcoming or previous tie-ins, litigations, etc. all can affect the value of a site.

    And folks can probably take a site and make more money out of it anyway.
     
    theapparatus, Aug 11, 2009 IP
  12. himoacs

    himoacs Peon

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    #12
    Umm...here are some points I think are important:
    PageRank
    Traffic
    Reputation
    Regular readers
     
    himoacs, Aug 11, 2009 IP
  13. lifeplayer

    lifeplayer Notable Member

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    #13
    Other than Revenue, Traffic ,Domain name & Content, i will look for Page rank and domain age too
     
    lifeplayer, Aug 11, 2009 IP
  14. zurpit.com

    zurpit.com Peon

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    #14
    a big thing is traffic, if a site gets good traffic than its worth alot, another thing is revenue, revenue is also important.
     
    zurpit.com, Aug 11, 2009 IP
  15. dnswasp

    dnswasp Peon

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    #15
    Actually Zurpit you are right..If a site a massive traffic but not yet monitized and is in a market that has that potential the site could be worth more than say an affilate site that had mediocre revenue - traffic is King but the right kind of traffic. This is why the subject of valuation is so subjective. Its what someones prepared to pay in that market place and their reasons for buying. Maybe Networktown you need to focus on what the value potential is in the market the domain is focused on
     
    dnswasp, Aug 12, 2009 IP
  16. dcristo

    dcristo Illustrious Member

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    #16
    That's a good start.

    I would also look at age of site and time needed to manage site.
     
    dcristo, Aug 12, 2009 IP
  17. jordanbar

    jordanbar Peon

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    #17
    how to up my website google PR value
     
    jordanbar, Aug 12, 2009 IP
  18. webcosmo

    webcosmo Notable Member

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    #18
    * Revenue
    * Traffic
    * Domain name
    * Content

    Thats pretty much all the main factors I guess. For bigger websites software is another factor.
     
    webcosmo, Aug 12, 2009 IP
  19. keen4kash

    keen4kash Well-Known Member

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    #19
    At the end of the day, the value of a site is only what is worth to the buyer....... all other tools are only a very rough estimate. But the best way other than the factors already discussed is to try to search for what price other sites have been selling for at other marketplaces and forums - whether it is a similar niche, similar size in terms of content, cms/script, traffic, rank, etc. that will give you a good idea.

    Proof of everything you claim is also going to be vital to maxmising what someone is going to pay AND if the seller is trustworthy in reputation.
     
    keen4kash, Aug 13, 2009 IP
  20. paradigmad

    paradigmad Peon

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    #20
    Very simple....A websites value is worth how much more the next guy is going to pay for it.
     
    paradigmad, Aug 13, 2009 IP