How to evaluate the value of website?

Discussion in 'General Business' started by popiul99, Jul 30, 2008.

  1. #1
    Hey guys,

    PS3center.net is undergoing a huge redesign and I decided to possibly take in a partner this time around. I've had the website for nearly 3 years now. The amount of time and money invested in this website is enormous. I also dedicated the last 3-4 months into designing a custom design of roughly 42 seperate pages. Now how does someone come to evaluate the value of the site?

    I am aware that Rankings, PR, Backlinks, daily visitors, seo, niche all have an impact on the general value of the site.

    The development of the new design was roughly estimated at over $50k from a design studio.

    If my partner was to invest into this website before launch, how much would the buy-in be?

    I do not want to disclose any more information about the website therefore please post your comments here. If I see that one of you guys can help me out further with this, we'll go into PM.

    Thanks

    Mike
     
    popiul99, Jul 30, 2008 IP
  2. ctrq

    ctrq Peon

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    #2
    traffic and revenue plays a big part of the value of the site
     
    ctrq, Jul 30, 2008 IP
  3. Barefootsies

    Barefootsies Well-Known Member

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    #3
    Among many other things. Do a search on DP.
     
    Barefootsies, Jul 30, 2008 IP
  4. popiul99

    popiul99 Peon

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    #4
    popiul99, Jul 30, 2008 IP
  5. mentos

    mentos Prominent Member

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    #5
    mentos, Jul 30, 2008 IP
  6. popiul99

    popiul99 Peon

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    #6
    popiul99, Jul 30, 2008 IP
  7. ~kev~

    ~kev~ Well-Known Member

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    #7
    This site is junk - http://www.websitevaluecalculator.com/


    My forum stats:
    Over 1.54 million page views a month
    1,900 active members (visiting every 30 days)
    700 members visiting every 24 hours
    5,654 registered members
    106,000 pages indexed with google - http://www.google.com/search?q=site:http://www.survivalistboards.com
    The forum is built with VBulletin and has several commercial add-ons.
    6 or 8 #1 rankings in certain keywords on google
    103,837 visits a month
    656 sites referring traffic to my forum
    Average time on site - 15:00
    Average pages per visit 14.78


    And all this is valued at $95 by websitevaluecalculator.com?

    hahah -
    If 1.54 million page views a month is only worth $0 a month, what does it take to make $1.



    :cool:
     
    ~kev~, Jul 30, 2008 IP
  8. TrafficSales

    TrafficSales Peon

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    #8
    Take your site. Factor in the traffic but the real value is around 10 to 12 months revenue unless you're pulling millions of uv's per day.

    PS I have these if you're interested.

    ps3guides.net
    ps3contest.com
    ps3gamers.org
     
    TrafficSales, Jul 30, 2008 IP
  9. popiul99

    popiul99 Peon

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    #9
    TrafficSales, thanks for the tip .... So most sites are strictly valued upon theiir last 10-12 months of revenue? Backlinks, Age, Search Engine Rankings, PR, Website Database, Userbase, Design, Custom work have no impact on the value of a site these days?
     
    popiul99, Jul 30, 2008 IP
  10. punkownz

    punkownz Peon

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    #10
    Search google " website money worth" few link's popup that can generate a real time estimate by traffic..
     
    punkownz, Jul 30, 2008 IP
  11. metros

    metros Notable Member

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    #11
    Hi,
    Try www.cubestat.com
     
    metros, Jul 30, 2008 IP
  12. Barefootsies

    Barefootsies Well-Known Member

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    #12
    Exactly.

    Mentos is always posting those tools or links. I would not consider a single one. Most people who know how to value internet property properly would know better than to post those.

    Their a joke, and anyone posting them is as well.
     
    Barefootsies, Jul 31, 2008 IP
  13. nofullstop

    nofullstop Peon

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    #13
    See PR, rankings, custom design, userbase, age etc do impact the value of your site BUT if you are looking for quick evaluation then you can do it using your revenue...

    you can get around 6 to 12 times your monthly revenue...

    so if you are earning $100 pm (example) and have good traffic and ranking then you will easily be offered around $1200.

    Now if you want to get more money then make your site brandable..

    something towards which people will get attracted themselves...like yahoo...name is enough...even if the person knows nothing about yahoo still he / she will visit it at least once..

    you seem to have awesome traffic and user base...plus a great design...

    do one thing

    start a auction in sitepoint...it hardly takes a couple of dollars...I think $20..

    start with a low bid and make the BIN to be very high...

    let the auction run for around two weeks or so and you will know the worth of your website... :)

    simple!!

    this is crap....

    for one of my sites it said i get daily 3000 page views while I get 200 page views for that site daily :p
     
    nofullstop, Jul 31, 2008 IP
  14. popiul99

    popiul99 Peon

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    #14
    Thank you for the tips nofullstop. I have thought of creating a "fake" auction and seeing how much the site gets bid up to. However won't users see that it's not for real if let's say I put the auction up for $500,000 (to not get bought on bin).

    What would you guys suggest to put the BIN as? I obviously don't want the website to sell either .. heh :p
     
    popiul99, Jul 31, 2008 IP
  15. nofullstop

    nofullstop Peon

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    #15
    check the BIN for various auctions...

    then go for 10 times the BIN :)

    A BIN which will bring you enough money to sit back and relax for next 1 year...

    who knows...you might earn a fortune :D

    if people ask why you have such a huge BIN then tell them that you are not sure what should be the end price...so you will sell the site when you see that no more bids are coming...

    I guess I don't need to explain anything further :)
     
    nofullstop, Jul 31, 2008 IP
  16. Merkersarl

    Merkersarl Peon

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    #16
    Oh, well, then I'm going to be a joke :)

    Seriously though, so far all those valuations tools were jokes, I agree. But there's a new one around. I'm going to refer people to the Sitepoint article that the OP mentioned earlier. The article recommends this site valuation tool.

    This is the first time there is a tool that values sites based on what similar sites are selling for. Not on PR or domain name, or traffic or webmaster's age.

    Unfortunately for the OP, sites are valued largely based on the revenue they are generating. He may not consider it fair but that's how life goes. He invested all that time in the hope that it will one day make a profit. Buyers don't automatically share that hope and the costs sunk in so far are largely worthless. Buyers need to see a business plan, realistic cash flow projections and a clear route to profit. I will let his upcoming auction prove my point.

    Suggestion: Don't set a high BIN as that will turn people off. You don't need to have a BIN at all. Set a high reserve instead. It will also save you having to defend the BIN to buyer after buyer.
     
    Merkersarl, Jul 31, 2008 IP
  17. technolojik

    technolojik Peon

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    #17
    technolojik, Jul 16, 2009 IP
  18. MyCrib

    MyCrib Peon

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    #18

    Try www.websiteshadow.com
     
    MyCrib, Jul 25, 2009 IP