Any such thing as website appraisal standards?

3 replies
Hello fellow warriors,

I have recently seen a site stating that the people or person behind it is a professional site appraiser. I don't think that exists. Heres the site if interested.

Not an affiliate in any way shape or form...
Website Appraisal - The Most Important Asset of Your Online Business

Do you know if there is any thing such as standards for website valuation? If so can anyone point me in the right direction?

Thanks
#appraisal #standards #thing #valuation #website
  • Profile picture of the author tomcam
    No. This is a very young field. Websites are worth whatever a buyer is willing to pay. I know that sounds frustratingly vague, but borne out by practice. It is simply not like valuing a franchise or an antique shop or a copy store. The closest to a standard you'll get is finding what websites sold for at places like WF and Flippa. If you build up enough buzz, a site producing no income or even costing huge amounts of money (like YouTube a few years ago) can go for insanely high amounts. For smaller sites, the rule of thumb is supposedly 3x to 12x monthly revenue, but even that's just the roughest of estimates.
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  • Profile picture of the author nequity
    Just like most valuation firlds there are no particular standards. However a website is an intangible asset and it therefore can be valued in simlar ways to other intellectual properties.

    My business nEquity is specialised in such website valuations. We use several commonly used and accepted techniques used to value intangible assets. Generally these are income methods based on future predicted income to obtain a value of the site today. Our other common method is to find comparable sites with similar characteristics sold in the market to get an idea of likely market value.

    But the best way to value really depends on the site, for example if its not an income earning site it can be a different ball game to obtaining an intrinsic value.

    Anyway hope this helps
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  • Profile picture of the author sbucciarel
    Banned
    I would not give them my money. There are a lot of website and domain appraisal sites that are pure scams. There's a famous domain appraisal scam that goes around when you list your domains for sale. They email you pretending to want to buy the domain for a very large sum of money, but they "insist" on a domain appraisal prior to giving you the money and of course, you "must" buy the appraisal at the sites they give you a link to, which happens to be their own scam appraisal sites, of course.
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