ACCURATE website valuation
*Disclaimer: I understand that actual value is defined as whatever the market is willing to pay for it. I am looking for input on how you accurately pinpoint what a reasonable website valuation is. When I buy a website, I want to buy under market value, but when I sell a website, I want to sell at market value.
A question for the website broker experts: How do you personally valuate a website? I've read a lot of different strategies, but want to hear from YOU what you find to be the most honest and accurate valuation strategy.
I use a combination of stock analysis techniques (basic financials- statement of cashflow, etc), looking at SERP/keywords, traffic patterns/consistency, design, analytic stats, user base (if applicable), and a few more small things. Of course, the big challenge is that this data is difficult to model in an algorithm, especially when prospective clientele can vary so widely depending on the site/niche.
I would be willing to bet that if we took 10 of us web brokers/investors on here and all independently valuated the same site, we would have at least a +/- 20% spread, and probably with a large standard dev.
What strategies have you found successful?
A question for the website broker experts: How do you personally valuate a website? I've read a lot of different strategies, but want to hear from YOU what you find to be the most honest and accurate valuation strategy.
I use a combination of stock analysis techniques (basic financials- statement of cashflow, etc), looking at SERP/keywords, traffic patterns/consistency, design, analytic stats, user base (if applicable), and a few more small things. Of course, the big challenge is that this data is difficult to model in an algorithm, especially when prospective clientele can vary so widely depending on the site/niche.
I would be willing to bet that if we took 10 of us web brokers/investors on here and all independently valuated the same site, we would have at least a +/- 20% spread, and probably with a large standard dev.
What strategies have you found successful?
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