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Do Domain Appraisals add value in Flippa listings?

by seoFool
8 replies
Hi,

I'm looking at this Flippa Listing for a PR4 microniche type site that's for sale for a $1 reserve.

The listing mentions that MySiteCost.com has estimated the site to be worth $1,094.
My question to you; is that sort of appraisal worth anything? Does it add value to a flippa listing? Does it mean anything at all?

Anyone know how they come up with that estimation figure? The auction just started so the listing has no bidders yet...

Thanks.
#add #appraisals #domain #flippa #listings
  • Profile picture of the author LovelyCornSyrup
    The typical sale price of full website on Flippa is six to eight months of income. People need to be able to turn of a profit off whatever you're selling, so if your domain is appraised at $1k it needs to make the buyer $1k just by owning it. Free domain appraisal web apps are more of a social thing for Web Masters than they are an assessment of value. They basically grab simple things like backlink count, meta data, page rank, alexa rank, etc. and just add arbitrary numerical values to calculate your site's worth.
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    • Profile picture of the author seoFool
      Originally Posted by LovelyCornSyrup View Post

      The typical sale price of full website on Flippa is six to eight months of income. People need to be able to turn of a profit off whatever you're selling, so if your domain is appraised at $1k it needs to make the buyer $1k just by owning it. Free domain appraisal web apps are more of a social thing for Web Masters than they are an assessment of value. They basically grab simple things like backlink count, meta data, page rank, alexa rank, etc. and just add arbitrary numerical values to calculate your site's worth.
      So it's definitely nowhere near as important as earnings then...sort of what I thought.

      6 to 8 months of earnings? That seems a bit low....anyone else see similar numbers?
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      • Profile picture of the author paulie888
        Originally Posted by seoFool View Post

        So it's definitely nowhere near as important as earnings then...sort of what I thought.

        6 to 8 months of earnings? That seems a bit low....anyone else see similar numbers?
        No, that is about right in the center of the average, typically I've seen the majority of sites go from about 5 to 10 times monthly earnings. Your site would have to be really exceptional to exceed 10 times monthly earnings on Flippa these days.

        Paul
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  • Profile picture of the author Flipfilter
    The exact figure for the last 60 days is 10.4 x, but this needs to be taken with a pinch of salt.

    For the year on the whole, the figure is actually 7.2x but has recently been increased by sites like S9.com selling for $400,000 despite having just $300 of revenue.

    We have a website value calculator on the site that should give you a slightly more accurate valuation than the wild figures thrown out by sites like mysitecost. It works off analysing recent auction sales of a similar type to your site and runs straight line regression to create an estimate.
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    • Profile picture of the author seoFool
      Originally Posted by Flipfilter View Post

      The exact figure for the last 60 days is 10.4 x, but this needs to be taken with a pinch of salt.

      For the year on the whole, the figure is actually 7.2x but has recently been increased by sites like S9.com selling for $400,000 despite having just $300 of revenue.

      We have a website value calculator on the site that should give you a slightly more accurate valuation than the wild figures thrown out by sites like mysitecost. It works off analysing recent auction sales of a similar type to your site and runs straight line regression to create an estimate.
      I know what you mean about the pinch of salt...the auction is already up to $100...but your figures suggest the site should sell for only $57.30.

      Maybe there's some statistical fuzzyness for really small sites that aren't earning that much money...?
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  • Profile picture of the author Trent Brownrigg
    Usually free website valuation tools value a website much higher than it's actually worth so they are not reliable. However, I like to try out 5-10 of them and if they all come up with similar numbers, and often they do, then I will take the average of them and include it in the auction. It might not mean much to most people but all you need is for one buyer to see it and want it based on those figures.
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    • Profile picture of the author seoFool
      Originally Posted by Trent Brownrigg View Post

      Usually free website valuation tools value a website much higher than it's actually worth so they are not reliable. However, I like to try out 5-10 of them and if they all come up with similar numbers, and often they do, then I will take the average of them and include it in the auction. It might not mean much to most people but all you need is for one buyer to see it and want it based on those figures.
      I don't suppose you have a list of 5-10 of those websites handy do you? I'd like to check them out...
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