What is my website worth?

13 replies
Hey WF,
I recently had my website ranking at page 1 position 3 back in May 2014.
After May my website fell off of google and wasn't picked up until recently earlier this month.
Now that I fixed my site I am re-ranking 1st page 10th position.
The rankings are expected to go up since I'm still in a google dance.
My question is how do I evaluate the value of my website?
I'm ranking for 3 keywords which can gross 5,040 unique views/month.
The product in question sells for $40 and I get $37/sale.
Conversions change anywhere from 0.01565 to 0.02121
So doing the math for you:
minimum: 78 sales/month
maximum: 106 sales/month

Earnings min: $2,886/month
Earnings max: $3,922/month

Maintenance Costs:
$15/month hosting (Business level= Unique IP + Private Server + phone #)
30min-2hrs on writing new content when needed. (could be outsourced)

~~~NO ADSENSE/YAHOO ADNETWORK INCLUDED~~~

I hear a lot of places saying a website is only worth 3 month's worth of its generated income. If someone can tell me that's not true and it's more, then please tell me honestly.

Thanks!
#website #worth
  • Profile picture of the author ptcrefko
    What niche is your site?. No need to post links.
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  • Profile picture of the author Kate L
    The problem with trying to give you an answer is that no one can give you a true to life answer. Some say you can make 3-10 times your monthly income but really it just depends on the person or people who are interested in buying your site. Remember only the market will be able to dictate what you'll be offered! Good luck
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by TygraOlympia View Post

    I hear a lot of places saying a website is only worth 3 month's worth of its generated income. If someone can tell me that's not true and it's more, then please tell me honestly.
    It's (generally) more. Honestly.

    It varies quite a bit. And the bottom line is that what a site is "worth" to you depends on what you can sell it for.

    But you might be thinking of more like 10 months' proven income, if it's proven over a reasonable time-period, other things being equal.

    (Most of the other things you mentioned about the site probably have, at best, a very slight and tangential relevance to what you can sell it for, really: "proven income" is about 90% of its valuation in the market, typically.)

    .
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  • Profile picture of the author ptcrefko
    Time spend + effort spend + generated income = value of the website.
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    • Profile picture of the author salegurus
      Originally Posted by ptcrefko View Post

      Time spend + effort spend = value of the website.
      You are way off the mark, the value of a website has got nothing to do with time or effort spent building/maintaining it...

      Originally Posted by TygraOlympia View Post

      So doing the math for you:
      minimum: 78 sales/month
      maximum: 106 sales/month

      Earnings min: $2,886/month
      Earnings max: $3,922/month
      So you are saying your site earns ave about $3000 per month?
      For how long and can you prove those quoted figures?
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      • Profile picture of the author ptcrefko
        Originally Posted by salegurus View Post

        You are way off the mark, the value of a website has got nothing to do with time or effort spent building/maintaining it...



        So you are saying your site earns ave about $3000 per month?
        For how long and can you prove those quoted figures?
        Time spend + effort spend + generated income = value of the website I mean.
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        • Profile picture of the author Tsnyder
          Originally Posted by ptcrefko View Post

          Time spend + effort spend + generated income = value of the website I mean.
          And you're still incorrect. The amount of time and effort you
          spend on the site has absolutely no bearing on its value to a
          buyer in an arms length transaction.
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  • Profile picture of the author RoyChan
    Usually about 12 - 15 month of revenue your site generates.
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  • Profile picture of the author Tom Addams
    I'm quite keen on looking at sites with a view to purchase them.

    I can tell you what I'm thinking now . . .

    "After May my website fell off of google and wasn't picked up until recently earlier this month."

    That's all I'm thinking about. Well, primarily what I'm thinking about. I'd be happier if there had been no drop. With no drop and a reliable report of earnings, I could make an offer. As it stands, I wouldn't risk it.

    Your best bet, in all honesty, is contacting the competition. They're in it for the long-haul, they know every aspect of the business, probably have a fair idea of when you might bounce back and to where, and they will either purchase it as an investment to grow their current income levels, or as an investment to stop the competition growing their own and, thereby, depleting their income levels.
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    • Profile picture of the author TygraOlympia
      Originally Posted by Get Rich Methods View Post

      I'm quite keen on looking at sites with a view to purchase them.

      I can tell you what I'm thinking now . . .

      "After May my website fell off of google and wasn't picked up until recently earlier this month."

      That's all I'm thinking about. Well, primarily what I'm thinking about. I'd be happier if there had been no drop. With no drop and a reliable report of earnings, I could make an offer. As it stands, I wouldn't risk it.

      Your best bet, in all honesty, is contacting the competition. They're in it for the long-haul, they know every aspect of the business, probably have a fair idea of when you might bounce back and to where, and they will either purchase it as an investment to grow their current income levels, or as an investment to stop the competition growing their own and, thereby, depleting their income levels.
      As a website owner i understand your concerns. The website actually lost it's ranking due to changes in my settings that I wasn't aware of. My robots.txt was completely wrong for my site and disallowed every search engine. I'm pretty sure the cause was the change of theme and messing with wp-plugins.

      However, that doesn't effect my website's standings in google, bing, yahoo, aol, or other search engine at all anymore.

      My backlinks i've made now are permanent, relevant, and have both decent TF and CF.

      My earnings come in bimonthly due to my affiliate network.

      Niche isn't important to give out. I'm not making things harder on myself.

      To maintain the rankings on the first page is very easy once you have the habits.

      I'm currently in the google dance but I have no doubt in my mind anymore that it'll dance back to the top 3 positions again in a week or two.

      Why, you may ask?

      Because I just fixed my website's robots.txt and reindexed my site and I'm already on page 1 again.
      So, with given time and continued effort on my part for quality backlinks and more content and visitor engagement, the site will stay on top.

      The reason why I ask for an analysis on value is because if I saw my site as an outsider, saw the income proofs, and cared about the site's health, then after further analysis my highest price wouldn't be less than $16,000.

      If I knew I could optimize the articles better (since i wrote them all myself they're more search engine friendly than conversion friendly) which could always be improved and not affect ranking provided you stick to my algorithm for keyword density.

      So with all the said, out of the 5k views/month getting only 106 sales is on the very low end. The potential to get more out of it could always be increased by adding small things like an email list, better written content, and whatever else you want to come up with.
      Plus you can always add an adnetwork of your choice like Google AdSense and make additional $0.00-$200/day* depending on what you focus on.

      *- you cannot guarantee clicks on ads but you can generally say you can make anywhere from nothing to a couple hundred bucks.

      Regardless of anything outside of the customer(s) you generate. (my leads at the moment)
      They are repeat customers for anywhere from 2-3 months.

      So depending on how you market and convert you can really make a whole lot more money than myself if i were to sell it as it is.

      Of course at the end of the day, please understand, I do not plan on selling my website.
      I just want to figure out how much someone would offer for it.

      The real earning potential is upwards of $15,000/month = 406 sales out of 5,040 unique visitors/month. Which is a measly 0.0805 conversion rate.

      And I mean that in context of just the article.

      If you could collect emails and give a newsletter and cross promote products to the same people, then you can easily upscale this to way higher conversion. If I had to speculate, then i'd say at least 12%-18% more. (low end)

      The sales come from how much work you want to put into it and how much time you want to devote to it. Obviously, if you're serious, then you'll do what you can to increase sales. But the first priority should be about quality content and getting organic traffic.
      Once that's in place and stable, that's when your marketing should come into play.

      Now as a whole, my website stands in the google dance on the first page. It will dance away to the top in due time. And the sales will increase as well.
      So at the end of the day I can estimate that I will generate a minimum of $3k/month and a max of (with my current conversion rate) no more than $12k/month.

      Anyway, thank you all for posting on this thread. It definitely keeps me motivated and helps me get some more insight.
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  • Profile picture of the author jgant
    If your site's potential is $15,000 per month, get it to that level and sustain earnings or have a trajectory for 12 months and you may garner interest in a 10 to 20 (maybe even more) monthly multiple.

    I think the market is different for sites earning more than $10k per month consistently and may fetch a higher multiple. Other factors such as potential come into play such as can the site be expanded to earn more in the long run.
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    • Profile picture of the author Alexa Smith
      Banned
      Again, almost all the things you've mentioned above (highly relevant though they doubtless are to yourself, if you keep the site) are very likely indeed to be at best tangential to its value in the market. Its proven history of income will almost certainly determine what you can actually get for it. Rankings, traffic, design, effort put in, articles, and so on are typically relevant only in so far as they affect its proven income (and income being entirely or mostly Google-dependent isn't a great plus, of course).

      .
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  • Profile picture of the author Hypnosisdotmn
    a good what is my website worth calculator appraiser can be found at http://www.cutestatvalue.com What Is My Website Worth.
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