Website Valuation

Discussion in 'Traffic Analysis' started by Main Boom, Nov 4, 2009.

  1. #1
    Today i found a website which apparently estimates your site worth called http://www.peekstats.com/. I checked my site's worth and results were pretty shocking. Tells me estimated traffic is around 500k views which is pretty close to reality and also the monthly income is close to what they say there.
    How can they estimate that data without me giving out any info :confused:
     
    Main Boom, Nov 4, 2009 IP
  2. Kwaku

    Kwaku Well-Known Member

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    #2
    The seem to know rather a lot of information about the site; probably they calculate it from that?
     
    Kwaku, Nov 4, 2009 IP
  3. Project Mobius

    Project Mobius Peon

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    #3
    contact them and find out?
     
    Project Mobius, Nov 4, 2009 IP
  4. Main Boom

    Main Boom Peon

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    #4
    How ? Alexa doesn't provide anything but ranks as for compete and quantcast stats are way off. I really don't get how they manage to estimate it, anyone ever made such stuff ?
     
    Main Boom, Nov 4, 2009 IP
  5. remorex007

    remorex007 Member

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    #5
    No that all traffic calculation sites are fake not a exact value they are showing my site value is 5000 Dollars i dont believe that is my site value http://www.desifreakz.com. But i like to know real price of my website can any one tell me.
     
    remorex007, Nov 9, 2009 IP
  6. dairyman

    dairyman Notable Member

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    #6
    I just checked my site and found that the valuations were fairly good and far better than other valuation tools available which generally provide an highly inflated figure :)
     
    dairyman, Nov 9, 2009 IP
  7. The Defender

    The Defender Peon

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    #7
    It gave my site a value of $145. I find this a bit high because the site I entered is a forum which isn't very active atm. Reptilebb.net
     
    The Defender, Nov 17, 2009 IP
  8. shawnzee

    shawnzee Peon

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    #8
    shawnzee, Nov 23, 2009 IP
  9. WebHunt07

    WebHunt07 Peon

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    #9
    there is a lot of difference in estimate form websiteoutlook and peekstats .... I don't know why it is so..?
     
    WebHunt07, Nov 25, 2009 IP
  10. Deus Ex

    Deus Ex Peon

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    #10
    The data the two get are different, it seems as though one bases more on SEO than the other one due to the scores it gives and the prices it spits out -- I like this peekstats site
     
    Deus Ex, Nov 26, 2009 IP
  11. worlddomain

    worlddomain Well-Known Member

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    #11
    I like the peek stats website - good find Main Boom.
    I also like the results - got a good $8000 value for a site - ne buyers : )

    It give a neat out look on some stats for anyone looking to purchase high end websites - but nothing should/can be set in stone - no website or for that matter even a human can give accurate valuation for a site. it's pure perception - a potential buyer can valuate a site quite differently to other potential buyers.
    A buyer valuation of a site could purely depend on the need for that site at that time. A good article I read here where it talks about valuation depending on the way the sale is presented (the sales letter) the time and the place it's presented.
     
    Last edited: Jan 6, 2010
    worlddomain, Jan 6, 2010 IP
  12. newlogo

    newlogo Peon

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    #12
    its may be approximate figure for every website tool
     
    newlogo, Jan 7, 2010 IP
  13. hamids68

    hamids68 Member

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    #13
    hamids68, Jan 7, 2010 IP
  14. wgcom

    wgcom Peon

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    #14
    Yep, I did.
    Actually, about two months ago I was involved in some big project and had to write the module that fetches various online info about certain website.
    So, after some investigation I figured out the algorithm that is used by 90% of traffic calculating websites.
    Most of them based solely on alexa rank, try to run query for alexa.com, you will get 0, coz alexa doesnt rank it self ;-)

    The "algoritm" they use works +/-ok for 60-70% of low traffic .com domains, but really bad for high traffic and international sites.
    So, I had to enhance it alot, it still in kinda beta mode, but avaliable online....
    you welcome to check it, and of course your feedback will be much appriciated.
     
    Last edited: Jan 7, 2010
    wgcom, Jan 7, 2010 IP
  15. wgcom

    wgcom Peon

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    #15
    oops, silly me, forgot to provide the link:
    http://www.webground.com
    enjoy ;)
     
    wgcom, Jan 8, 2010 IP
  16. kissmyarse

    kissmyarse Peon

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    #16
    There are a lot of sites around like this, nearly all that I've seen over value your website. I'd imagine it's a very simple calculation which;
    • Gives you some value for your Alexa ranking, indexed pages, pagerank (an SEO value)
    • Estimates your monthly traffic using compete data, and factors your traffic to estimate ad revenue on your site (a revenue value)
    • Adds the two together

    Rarely will someone buy a site based on these valuations, as they are so wildly wrong for some sites. The industry rule of thumb for site value has always been based on your monthly revenue. Anywhere between 6x and 12x your monthly revenue (with proof) is how most sites are sold.

    That site tells me my site is worth $30k, in reality using the industry revenue rule it's worth $2.5k.

    Cheers,
    kma
     
    kissmyarse, Jan 9, 2010 IP
  17. wgcom

    wgcom Peon

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    #17
    Yep, thats correct. Thats exactly how it works.... on other sites :)
    it based on alexa rank, solely, and we all know how easy alexa rank can be manipulated, so if you have low traffic site and you are not in SEO/Webmasters/Hosting/etc business, meaning dont have alexa toolbar installed and general audience of your site have no idea about alexa then and only then you can include the alexa rank as a factor for valuation.
    It doesnt work that way for high traffic sites.


    you right again, on my site i multiplied figured monthly value x 24 ...
    had no idea whats going on in reality, apparently x24 is to high for small , not established sites, but i doubt that it acceptable for for high traffic/earning website to settle for only x6-x12 monthly revenue. Its nonsense!

    Say, there is a site that runs for 3-4 years and brings yearly, say, 1mil.
    also, lets say that it grows 10% each year for 4 years.
    How much it worth, in your opinion?

    I say it worth at least 2-2.5 mill, but based on your figures it should be priced for 1 mill or less.
    It doesnt make sense for me, meaning, if you buy this site for 1 mill you will gain 100% profit in only 2 years, means around 50% yearly... uber high.
     
    wgcom, Jan 9, 2010 IP
  18. kissmyarse

    kissmyarse Peon

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    #18
    Very established sites, with long term good performance, revenue proof, and amazing stats, do move away from the rule. If a site is worth $1MM+ it wouldn't be sold in the "usual" webmaster forums... it would be sold privately, in auction, or via a broker. I've never seen a $1MM site change hands.
     
    kissmyarse, Jan 9, 2010 IP
  19. wgcom

    wgcom Peon

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    #19
    Thats exactly what i was talking about. But I extrapolated this approach to low traffic sites also, my mistake.
    I will have to adjust the worth calculations taking in account the age of website and its historical traffic distribution.
    Also, the value ranges.... Thanks for the tip :)
    Can you suggest some ranges?
    Like if the site runs for a year or less with earnings about $1k monthly its value should be like $1k x 5-6?
    with 2 years and $1k monthly -> about $8-9k?
    2 years and $5k monthly -> about $50-60k?
    Is it reasonable?
    Thanks!
     
    wgcom, Jan 10, 2010 IP
  20. kissmyarse

    kissmyarse Peon

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    #20
    I'd say you're about right with the date ranges, and the factor.

    You could be very clever with your calculation if you had time, what if you were to use fireclick industry averages to make a better revenue assumption? (http://index.fireclick.com/). It would mean the valuation took into account visitor trends and economic factors...

    I think though you're problem will always be getting accurate click stats.
     
    kissmyarse, Jan 10, 2010 IP