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How Do You Value a Website?

by Sheryl Polomka
18 replies
I have a site that I'm considering selling because I just don't have time for it anymore. It's actually one of my favorite sites and it's the first site I ever bought so the domain is about four years old.

The site itself I haven't added to it or promoted it for such a long time so it's just sitting there doing nothing.

However, because it is doing nothing and not earning any income at the moment I'm not really sure how much it's worth.

Is it worth trying to sell a website that isn't earning anything?
#website
  • Profile picture of the author Marhelper
    I don't think so. Most buyers would stay away from a site that is not CURRENTLY earning. Try to get the sales back up there then sell it IMO.
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  • Profile picture of the author WillR
    There are people who will buy a site that isn't currently earning money because they know they can get it much cheaper, build it up themselves, and turn it into a money earner.

    You will definitely be able to sell the site for more if you were to work on it a little and have it start producing some sort of income. Even if it's a small income it makes a big difference because it proves the ability for that site to make money.

    Once a site is producing money it is much easier to place some kind of value on the website - much like in the offline world the value will be a multiple of the income the site is currently producing.

    If the site was to be sold now without any proof of income then it's really only worth what someone is willing to pay for it - there's no way anyone could predict what that figure might be.
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  • Profile picture of the author Steelman
    I am not sure how accurate this is, but I read somewhere awhile back that you could also take the number 38 and multiply it by your monthly traffic/visitors. 1000 uniques a month x 38, = $38,000. Maybe, I don't know for sure.
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    • Profile picture of the author seokohli
      Originally Posted by Steelman View Post

      I am not sure how accurate this is, but I read somewhere awhile back that you could also take the number 38 and multiply it by your monthly traffic/visitors. 1000 uniques a month x 38, = $38,000. Maybe, I don't know for sure.
      Hahaha.. Is it a joke?
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      • Profile picture of the author Hamida Harland
        Forget valuation websites - none of them are accurate. They're often out by hundreds or even thousands of dollars.

        Most sites without traffic or earnings generally only sell for a few hundred dollars (and that's only if they look really good and have earning potential).

        If it's one of your favorite sites then I'd say hang on to it.
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        • Profile picture of the author Flipfilter
          Originally Posted by Hamida Harland View Post

          Forget valuation websites - none of them are accurate. They're often out by hundreds or even thousands of dollars.

          Most sites without traffic or earnings generally only sell for a few hundred dollars (and that's only if they look really good and have earning potential).
          I'd second that.

          Most if not all website calculators are complete crap. They work by taking a domain value estimation and completely disregard the value of the site. IMO buyers value sites based on (and sort of in order)

          1) Revenue
          2) Traffic (and organic rankings)
          3) The Domain (unless the domain is an incredible one then it may move to 1) )
          4) Page Rank
          5) Domain and Site Age
          6) Design and Content
          7) Domain extention (.com / .co.uk / .info etc)

          We have a valuation tool that doesn't create a valuation, but gives you an average based on hundreds of recent public sales based on the same criteria. It's not always accurate, as it relies on having enough data to get a good match, but generally it will give you a solid figure approx 80% of the time.

          Website Value Calculator

          Providing your niche is right, you should be able to generate at least a little revenue and traffic by outsourcing some link building (through fiverr for example) direct to specific posts to pick up on some long tail traffic. If you use something simple like Adsense, a couple months and about $50 (ten gigs) should see at least some revenue start to trickle in, giving you a much better selling price than if you sold now.

          Justin
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  • Profile picture of the author Audrey Harvey
    I think anything is worth only what a buyer will pay, so valuation sites and formulae don't necessarily work. For what it's worth, I sold a site with almost no traffic and definitely no income for $200 recently. It had a good page rank, loads of unique content, and was 3 years old, and that's all it had going for it. I'm finding sites with no traffic or income aren't selling for much at all.

    If you just wanted to get rid what you could for it, you could spend the $19 listing it on Flippa at a starting price of 1c and see what happens. Stick a reserve on it if you don't want to let it go before a particular price.
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  • Profile picture of the author brenda ashford
    Consider the information on the web site and how much traffic it has received in the past to come up with the value of disposing it.
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  • Profile picture of the author Bradley J Anderson
    There are a number of websites that will give an approximate valuation of your website. I don't know exactly how they figure out the worth, or how accurate they are, but it's a starting point at least.

    How Much Is Your Site Worth? | URLAppraisal.net

    Website Value Calculator-Check PR,Alexa Rank,Backlinks,Website Worth,DMOZ directory etc
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  • Profile picture of the author Audrey Harvey
    Just put my recently sold site in both of those valuation sites. They said it was worth $3,945.45 and $4000, a third one said it was worth $23,000. It sold for $200. Value is in the eyes of the buyer.
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  • Profile picture of the author Marvin Johnston
    Your best bet is probably to do your research on Flippa looking for what other similar sites have sold for.

    Make sure you compare the traffic numbers. Keep in mind that your traffic is worth money, and you can get an idea with the PPC costs for traffic in your niche.

    And being four years old is a good thing ... does the site have any PR?

    Do you have an email list?

    Also check the sales page for similar sites ... that will give you an idea of how to promote it. And then do a better job .

    Marvin
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  • Profile picture of the author zzman
    Well, what is the niche and how many uniques are you getting?
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  • Profile picture of the author Sheryl Polomka
    Thanks everyone, I will take a look on flippa for sites in the same niche and see what they are selling for.

    Maybe I will spend a bit of time on it to get it earning a little bit. Problem is if I do that and it starts earning money then I won't want to sell it

    I'll take a look around anyway and decide what to do with it.

    Thanks
    Sheryl
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    • Profile picture of the author magiclouie
      Originally Posted by Sheryl Polomka View Post

      Thanks everyone, I will take a look on flippa for sites in the same niche and see what they are selling for.

      Maybe I will spend a bit of time on it to get it earning a little bit. Problem is if I do that and it starts earning money then I won't want to sell it

      I'll take a look around anyway and decide what to do with it.

      Thanks
      Sheryl
      I just can't help but smile. Of course, if it starts earning money then I can't think of a good reason for myself on selling that domain, unless you want to quit the online business.

      Well Sheryl, there is no need to rush so please spend some time to think it over. What is the PR of that site?
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      • Profile picture of the author Sheryl Polomka
        Originally Posted by magiclouie View Post

        I just can't help but smile. Of course, if it starts earning money then I can't think of a good reason for myself on selling that domain, unless you want to quit the online business.

        Well Sheryl, there is no need to rush so please spend some time to think it over. What is the PR of that site?
        Yeah I will have a good think about it. This is a site that I've thought about selling before because I don't really have time for it, but I have never done it because I think being my first ever site in kind of has a bit of sentimental value. Then I tell myself that there is no point keeping it if it isn't doing anything, but so far I haven't been able to let it go. Still just thinking about it.

        It is only a PR1.
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  • Profile picture of the author Aldiyar1
    Hi!

    Let me show you what sites sell:

    1) Sites with great graphics, no traffic
    2) sites with traffic, no income
    3) sites with income
    4) sites that have software

    if your site belongs to one of these then just go to flippa and flip it! ))

    Hope this helps,
    Aldi
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  • Profile picture of the author Anonymous Affiliate
    Originally Posted by Sheryl Polomka View Post

    Is it worth trying to sell a website that isn't earning anything?
    Unless the site has some serious potential (great domain name, good SEO rankings, etc), you will hardly get any decent money out of a website that's not earning a dime.

    That being said, I'd like to reformat your question: is it worth keeping (or sticking to) a website that's not earning anything?
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  • Profile picture of the author fprint
    I have been looking into selling an ecommerce store only recently and according to the different brokers that I spoke to, the value of an online store that is making money is worked out on the 'Capitalisation of Earnings' method and is higher than your average bricks and mortar business. They recommend a multiple of 5 whereas a bricks and mortar is worked out at 2.

    An appropriate capitalisation rate is applied based upon a risk return. The higher the perceived risk associated with a business the higher the return and the lower the capitalisation rate.

    As for a business that is not earning any money, it has the age factor which should count for something, as well as the amount of backlinks that might be associated with the site.
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