How to Set Asking Price for a Website?

Gordon P

11 years ago

Usually you multiply your monthly profit by 10-12. So after a year you paid off your investment...

Thanks

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Juan Jose

11 years ago

Hi there.

You should get into account some points such as:

Pagerank
Domain Age
SERP
Does it generate revenue?
How easy is it to be managed?
Web Security -Is it constantly hackers target?

Base on that criteria you can calculate or have an idea of the final price.

Thanks
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globalwritersdirect

11 years ago

Originally Posted by juan2machado

Hi there.

You should get into account some points such as:

Pagerank
Domain Age
SERP
Does it generate revenue?
How easy is it to be managed?
Web Security -Is it constantly hackers target?

Base on that criteria you can calculate or have an idea of the final price.

Thank you,

Here are what I have.

1. Pagerank: 1

2. Domain Age: 5 months and 3 weeks

3. SERP : page 1 of google for my main keyword and secondary keywords .. SERPFOX says 6, 7, 8 .. actually doing great without that much backlinking.
REVENUE: Yes... 1 month after launch - November $32.29, December $53.58, January (present) $129.96 ... not that monetized actually.

4. Very easy to manage.

5. It was hacked once but installed anti-malware and 1 security via hosting.

I'm still confused whether to really sell since I still have a lot of things to do with it that can boost the traffic and the earnings. I haven't done that much monetization yet. I'm getting the sale from one page only with affiliate links. The other pages are getting a lot of traffic but no affiliate links there. The niche is evergreen.

My wife will be giving birth and I need a quick cash but if January will provide me with $1000 or up income from this one page then I won't sell this.

I have one question:

If you were in my situation, are you going to sell this? If yes, then how much will be your asking price?

Thanks

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Jonwebb

11 years ago

Yearly net income by 12. Or what ever someone is willing to pay.

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"How to value a business or Website for purchase"

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getano

11 years ago

Setting a price for a website is very tricky. If your website is average and doesn't have anything spectacular of at least different than you could ask like 10 times monthly profit.
If you bring a new idea to the table than you could ask for more.

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daddykool

11 years ago

Try and research similar website sales in your niche first, do not set a price until you do that...

Put it on a marketplace, with a BIG reserve, see what it makes and then sell it near the highest bid price

Hope that helps!

Thanks
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shabit87 11 years ago

Originally Posted by daddykool

Try and research similar website sales in your niche first, do not set a price until you do that...

Yes, she what sites similar to yours (niche, age, traffic, cost to run, etc.) and see how they compare. See what they are currently going for and see the ended auctions on flippa to see what they've sold for.

Originally Posted by Gordon P

Usually you multiply your monthly profit by 10-12. So after a year you paid off your investment...

This really does depend on how consistent your earnings are. If you've been bringing in the same or increasingly more each month for a min. of 6 months (better if 12) this model usually works well....well 8-10.

So if you've got a site that makes an average of 100 a month and has been for a year, it'd be nothing to ask for $800 or even $1000.
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- globalwritersdirect 11 years ago
  
  So if you've got a site that makes an average of 100 a month and has been for a year, it'd be nothing to ask for $800 or even $1000.
  
  it's 4-5 months old and getting an average of $54 per month that's based on my current earnings divided by its age.
  
  Thanks
  
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Thomas Smale

11 years ago

There are a lot of variables that go into site valuation. Most buyers will work off a multiple of your net profit. The multiple will vary based on a number of factors.

In the current market, you would expect to get anywhere up to around 2.5x yearly net profit. This would be for a site in a stable niche, with at least 2 years of history and that doesn't require too much work to run. The multiple would lower if you have less history, a more risky niche or if it is a site that relies heavily on the skill/reputation of the current owner.

Feel free to drop me a PM if you want to get a more accurate valuation.

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I specialize in selling websites over $10,000 in value. No obligation, confidential valuation here.

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TheSalesBooster

11 years ago

It's worth what someone is willing to pay for it.

If you plan to put it up for auction, use the model of pricing it 10-12x monthly earnings, but keep that number as the reserve. Then let the people bid on it and see what it sells for. If it doesn't reach the minimum reserve then you get your site back. It's a win-win situation.

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Weblover50

11 years ago

Flippa, I belive take the average income of your last 3 months to be the monthly income. So you know where you stand.

If I was in your situation, selling would have been the last option. Websites take 1-2 years to get some serious traffic from Google and 4-5 months very young to rank anywhere high. In next 1 year or so, you can expect exponential growth, so it makes no sense to sell at this point. Hold on to it for another one year, monitize it as much as you can and then take a decision.

Thanks

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leliahawkins31

11 years ago

depends on the domain age,Page ranks, traffic per month,.

I guess there are a lot to consider when selling a website.

just sell it wisely.

thanks

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rusha 11 years ago

I bought domain with extension *net. Age 0, Pagerank 0 But the domain keyword have 110,000 global searches each month.
Can anybody tell if I can sell it for say 500$ ?
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globalwritersdirect

11 years ago

Thank you all for those who shared some comments here. I decided to keep my website. I just want to let you know that I made $268.45 last January. This February (current), it is at $74.82 and counting. I'm going to keep this one I think and I'll make this as my basis for more websites to come. Need to tweak some more.

SERP Update:

#1 for one of the main keywords
#3 , #5, #6, #7 for the other keywords

Thanks

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Jeff Schuman

11 years ago

I had a website broker offer me 18 times monthly earnings on a site not to long ago. They said they pay 10 times earnings on a site making less than $4k a month and 18 times on a site earning over $4K a month. You need to documentation.

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Thomas Smale

11 years ago

Originally Posted by Jeff Schuman

I had a website broker offer me 18 times monthly earnings on a site not to long ago. They said they pay 10 times earnings on a site making less than $4k a month and 18 times on a site earning over $4K a month. You need to documentation.

I've never heard that way of valuing a site before, it doesn't even make sense as a methodology. That means a site making $3500 a month would be "worth" $35k and a site making $4k a month would be "worth" $72k.

Are you sure they actually made an offer and weren't just offering to sell it for you? It's rare for brokers to buy sites. A lot of brokers will fabricate valuations in order to get you to sign a representation agreement and list the site.

You're right on the documentation, though, that is essential.

Thanks

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I specialize in selling websites over $10,000 in value. No obligation, confidential valuation here.

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evilsaigon

11 years ago

Adsense sites typically sell at 20 times of their monthly earning, so 18 times a monthly profit is actually still reasonable.

Adsense earnings are easier to prove though, and it really depends how you portray your site's potential (hint hint lol).

Thanks

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How to Set Asking Price for a Website?

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