Best way to evaluate a site?

by usgom
5 replies
Is that done by a site evaluation site or a service? Do you use just one? I just need a ballpark figure for the value. Any extra tips would be good too.
#evaluate #site
  • Profile picture of the author timokeefe
    Do you mean a whole working website or just a domain? You can check flippa to see what similar sites go for. I'd be highly suspicious of any automated tool that just hands you a number.

    What's the site?
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  • Profile picture of the author brettb
    I was watching a recent Flippa auction that sold for around 38 times monthly income (!). For a lot of buyers they're clearly looking at future potential rather than what the site earns today or has done in the past.
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  • Profile picture of the author Steve B
    Originally Posted by usgom View Post

    Is that done by a site evaluation site or a service? Do you use just one? I just need a ballpark figure for the value. Any extra tips would be good too.

    Most of the site evaluation services are there, first and foremost, to make money. How do they do that?

    They tell you the domain you're asking about is worth way more than it really is. They get you excited and then try to sell you (usually by referral or affiliate links) on other services like domain registration, paid site appraisals, hosting, SEO services, and any number of other things.

    IMO, it's best to do your own research to discover what a "working" site is worth. In my book, consistent daily traffic from sites in the niche, daily organic traffic, backlinks from reputable sites (especially authority sites in the niche) and consistent and growing monthly income are all important factors in determining value.

    In addition, I would look at the business's assets like the branding that's been done, the content found on the site, the products (or services) and intellectual property the business owns, and also I would delve into the monthly expenses the business has to maintain its income. Is the business heavily dependent upon paid traffic? If so, you need to know that.

    You need to know if you can run this business profitably after the current owner is no longer involved. You see, in many ways . . . the owner is the business. He/she may have a following simply because the owner has a charismatic personality, special knowledge, or something else you may not be able to replicate.

    I would also check to see if there are any financial obligations encumbering the business.

    Very few of these important items will be exposed by the site evaluation web sites that you go to . . . yet, if you're serious about purchasing a real business, your own due diligence is very important. You don't want any surprises coming to light after the sale.

    Steve
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  • Profile picture of the author Affportal
    1-3x yearly earning is a good rule of thumb. Even though they can fib on the earnings, you can press for verification and should not buy until it is verified.

    The seller should have a prospectus ready to go that includes revenue sources, expenses, time required weekly, growth opportunity, how it's currently being marketed and market research.
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  • Profile picture of the author gregdavidson727
    Originally Posted by usgom View Post

    Is that done by a site evaluation site or a service? Do you use just one? I just need a ballpark figure for the value. Any extra tips would be good too.
    Are you looking to buy an "established" website?
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