Can't really find any (recent)information about this. How do you go about deciding how much your site is worth? The only decent article I found(which was about 6 years old) suggested taking the yearly revenue, deducting the operating costs, and multiplying by 2 or 3. While that formula might work in some cases, I figure it's probably a little more complicated than that. Or is it? Any advice here?
There is no way to value a site realistically. I might pay 20 months revenue, someone else might see that they could add huge amounts of value to their business because of the site and offer you 40 months revenue. That being said, at the time you sell, the only people that see it/prepared to buy it, might only offer 10 months revenue. It's sort of like starting ebay auctions at 0.99. If you have a product that's 1000.00 RRP and 1 bidder, it will sell for 0.99; simple. If you have 10 bidders, it could go £750 or more!
Thanks for the responses guys. I guess the saying holds true: It's worth whatever someone is willing to pay for it. I'm just hoping to figure out a good starting point. I've been building websites for a long time now, but I've never sold any of them. I don't want to sell a site at too low of a price just to find out I sold way too cheap. I'm sure that's a problem that many people run into when they start out, but I'm hoping to avoid it as much as I can. I guess monthly revenue x10 is a good place to start a price at, until I get better at judging the real value of a site.
Usually 12-18 months revenue. But this isn't reliable anyway, like any other estimation method. Best of all is to build your very own website.
Website value is decided only when it´s sold, atleast that´s my opinion. You could get an idea just by looking at the revenue, ranking, traffic and etc. But the only true way to find out, sell it. Sometime it has more value then you think, sometimes it has much lower.
Interesting. This is definitely a good post on judging developed websites. Websites are like developed properties with value in them.
that's depinds! what kind of websites or domain do you have! for exemple pizza.com! with we are talking about revenue you can multiply that with 1000 and would not get the corect value ( was sold a year ago or so for 3.000.000$ if i rember correctly) !
It depends on so many things, such as traffic, revenue, niche, etc. Some sites have built up a genuine social media presence where the site has become extremely popular without the need of SEO, these sites can be worth even more. Revenue and traffic are the biggest factors though....
1. revenue 2. revenue 3. revenue potential 4. traffic 5. revenue or to say it differently, it's 95% about the revenue, the history of the revenue and the future potential of the revenue
it is all based on what someone will pay for it, if you buy a website (or even domain) that someone really likes and wants then they will pay over the odds for it and could give you a large amount for it. unless that happens it will be based on your revenue from ads and alike.