How do you work out the value of a website?

Discussion in 'General Business' started by Paulie, Sep 22, 2009.

  1. #1
    One of my websites which I have recently purchased has made $400 in the last month. Half of this is through donations, though being a new site id never expect to get 10-12 months revenue for it as seen on some of the adverts.

    Just wondering how you all work out what to ask for your site when advertising them for sale.

    Cheers
     
    Paulie, Sep 22, 2009 IP
  2. Hosting24

    Hosting24 Member

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    #2
    Usually buyers are ready to pay amount of 12 months site revenue. So if site makes about $100 per month, then someone may want to buy it at $1200.

    Needless to say, it must be an established site (so you can show long term stats for potential buyer) and final price depends on site's quality and buyer needs. Some buyers may want to pay only amount of 3-6 months of site revenue, while other persons will be happy to pay amount of 24 months site revenue or even more.
     
    Hosting24, Sep 22, 2009 IP
  3. Paulie

    Paulie Active Member

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    #3
    Yeh I understand that and its a fair point, but Im more interested in how "sellers" choose what to advertise at.

    I got offered $1000 via email through the site itself, but as it has made $400 in the last month, i rejected the offer and then it got me thinking on how you'd actually work it out.

    Suppose its easier with established sites, though being only 2 months old I dont have that option yet.
     
    Paulie, Sep 22, 2009 IP
  4. Steve Powers

    Steve Powers Peon

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    #4
    You can judge its value via these factors(including but not limited to):domain name(inculding how has it been registered...)、content、PR value、
    Pageview、imcome of the webiste、daily maintenance 、the advantage and station in special field and etc... What's more,still some website can
    help you to evaluate the value of your website.For example,http://www.websiteoutlook.com.You can have a try to check it.
     
    Steve Powers, Sep 22, 2009 IP
  5. mentos

    mentos Prominent Member

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    #5
    The advertising fee is depend on the traffic of your site.
    Normally i count like this $5/CPM for US traffic while for other it $2/CPM.
     
    mentos, Sep 22, 2009 IP
  6. Paulie

    Paulie Active Member

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    #6
    Not a fan of these valuators (sites that tell you how much your site is worth) as they're never accurate, Im getting figures between $1000 and over $10,000
     
    Paulie, Sep 24, 2009 IP
  7. Maritoni

    Maritoni Peon

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    #7
    Usually 9-15months revenue depending on the site niche (seasonal vs non season)
    Traffic , growth potential and market space all place a factor.
     
    Maritoni, Sep 24, 2009 IP
  8. Paulie

    Paulie Active Member

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    #8
    Even if its not established or did you mean just for established sites? i.e. 6months and longer

    These web calculators are mad, ive had them as high as $15,000 but then one told me $72 lmao
     
    Paulie, Sep 24, 2009 IP
  9. forumswetha

    forumswetha Peon

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    #9
    I found an website where by providing our site name it will gives us the appoximate value of our sire.

    url:- http://www.valuatemysite.com/

    You can enter your website and then get the value of your site.
     
    forumswetha, Sep 24, 2009 IP
  10. Kwaku

    Kwaku Well-Known Member

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    #10
    They only work (as only they can) when the income depends on ads and traffic *only*. The valuators have an estimate of your traffic and they know average ad income with that traffic on non-adult, non-warez, etc sites. I've found cubestat.com accurate for those kind of sites. For sites that do not get (all) their income from ads, but from sales, affiliates etc it is not possible to know the value, so the value is obviously wrong for those.
     
    Kwaku, Sep 25, 2009 IP
  11. Paulie

    Paulie Active Member

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    #11
    My site is coming in at over $10k with cubestat hence why I dont take these things too seriously
     
    Paulie, Sep 25, 2009 IP
  12. Paulie

    Paulie Active Member

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    #12
    Does high alexa ranking dertimine value as well?
     
    Paulie, Sep 25, 2009 IP
  13. nmx

    nmx Active Member

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    #13
    Well surely you just do 10-12x the average monthly earnings, it'd have to be a figure which is consistent and acheivable, something like donations isn't consistent and so you can't really use them to calculate a value imo.
     
    nmx, Sep 25, 2009 IP
  14. Paulie

    Paulie Active Member

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    #14
    Hmmm donations being half the amount earned in the month there isnt no way id sell it for 10-12x revenue not including donations.

    Site is just under 2 months old with just under 30,000 members and ranked in 158K
     
    Paulie, Sep 25, 2009 IP
  15. elonblock

    elonblock Peon

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    #15
    The general rule of thumb is more like a range. Between 9-15 months revenue. Of course you need to take into consideration whether revenue is increasing and many other factors,

    This is more of a guideline. The true value is always determined by the marketplace.
     
    elonblock, Sep 25, 2009 IP
  16. Jontish

    Jontish Well-Known Member

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    #16
    Ye, I tried a few value calculators and both was showing a significant difference so it's not accurate.
     
    Jontish, Sep 25, 2009 IP
  17. Paulie

    Paulie Active Member

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    #17
    Well i got offered $1000 via email from the site itself which i turned down. Im going to place an ad tomorrow on DP (though will probably regret it becaue i can just see someone going..... "$20 from me" lol) and see what offers are made.

    I think alot of the value of the site would also come from backlinks and other factors as monetized correctly it would be alot better than what ive done.

    Site has tons of backlinks, most traffic is through referrals, no advertising done whatsoever, im not saying it will but personally think that those factors would play in effect on to how much the site was worth
     
    Paulie, Sep 25, 2009 IP
  18. PHPGator

    PHPGator Banned

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    #18
    I would never pay more than 8 times the monthly PROFIT. Therefore, if a website is spending $50 per month to make $100 per month, that is only $50 profit. 50 x 8 = $400.00.

    This may go up if the company has been doing that routinely (and can prove it) for over a year. Also, the company would have to be able to recouperate that $400 I spent. So Proxy sites or sites that can often lose their income overnight... go down in price drastically. Ecommerce, Blogs, those are a little better.
     
    PHPGator, Sep 25, 2009 IP
  19. cscholberg

    cscholberg Peon

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    #19
    A year's gross revenue is the starting point, then the price is adjusted upwards or downwards depending on how long the site has been around and other factors.
     
    cscholberg, Sep 28, 2009 IP
  20. BooTCaT

    BooTCaT Well-Known Member

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    #20
    many websites like websiteoutlook have started to sprout up which give the info u asked for .
     
    BooTCaT, Sep 28, 2009 IP