Notes on Valuation of Developed Websites Creation: How much will it cost to create a new similar (comparative) website today. While prices would certainly vary from developer to developer, actual offers from developers can give a realistic idea about the costs. Traffic: While all traffic is not equal, the average of top ten pay-per-click bids on the site's primary keywords can give a fair idea as to the value of traffic the site is generating. If the average value is, say, $0.25 per click and the site gets 5,000 unique visitors every month then the value of traffic can be estimated at $1,250 per month or $15,000 annualized. Opinions vary as to whether the annual value is fair or it should be calculated for a longer period. Revenue: If the site is earning a net profit of, say, $1,000 per month from the sale of its products or services then we can annualize the value at $12,000. Again, opinions vary as to whether the annual value is fair or it should be calculated for a longer period. However, a website that generates $1,000 with little or no effort will be worth substantially more than a website that requires, for example, stocking and shipping of goods. Product/Service: The valuation of the product or the service itself sold or provided by the site will, in all probability, require a separate and equally complex valuation. This will not be applicable to all sites. Content: Original and exclusive content on the site or a database of useful information or of users / subscribers / customers, if present, can make a lot of difference and add substantial value to a site. However, over time, the quality of the content or the database will surely reflect in the traffic figure calculated above. Domain Name: Although domain name values declined substantially (seem to be on the rise again) compared to the pre-bubble days, in general, one-word generic and type-through .com names are still a rare a commodity. If a site is built on such a domain, it will command a substantial premium. Obviously, there would be more variables but these notes provide a starting point for negotiations to begin.