Best way to value a website

13 replies
I have a website that somebody might be interested in buying. Without revealling income amounts, traffic numbers etc all I'd really like to know is, in case I get an offer I'd like to get an evaluation of what the site might be worth. Is there such a legitimate service that anybody here has used and could recommend?
#website
  • Profile picture of the author Horny Devil
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    Not without knowing the url and stats there's not.
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  • Profile picture of the author drr
    Quite a tricky question. There may be several factors that would add / subtract from the value of a website such as:

    - Raw value of the domain. I think a post on WarriorForum today revealed that some photostock site just sold for $250k (domain alone). Excuse me if the exact number is off, I'm working from memory.

    - Type of income. If your site has recurring income, it's potentially worth multiples of a site that whacks off just one off sales.

    - Users/Members.

    - Quality backlinks, Alexa ranks, SEO punch.

    I'd be equally interested to know of a tool or site that could accurately value a domain or site. I guess the real value is pretty much what a buyer is willing to stump up to acquire it...
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  • Profile picture of the author Presto Smith
    Is is making any money? Is it full of targeted content? Does is rank at the top of the search engines for a given keyword? There are plenty of ways to determine the value of a website, but without sharing a link for us to review it is hard to offer advice.
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  • Profile picture of the author Thomas Smale
    Depends what the buyer is buying the site for. Regular website investors would pay a multiple of net income (usually around 2x yearly), but if someone has approached you cold, that's completely different.

    If it were me, I would give them the relevant metrics and ask them to make a suitable offer. Don't be the first to name a price if they approached you.

    There are no free services for valuations that will be of any use - automated tools don't work. Most brokers would provide a free valuation - but you'll have a hard job finding someone willing to do it if they know you already have a buyer lined up and have no intention of working with them.
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    I specialize in selling websites over $10,000 in value. No obligation, confidential valuation here.
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  • Profile picture of the author Devin X
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    Monthly revenue X 10 months of average income = website value. (income X 10)
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    • Profile picture of the author RonAlps
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      [DELETED]
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      • Profile picture of the author Devin X
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        Originally Posted by RonAlps View Post

        Some people say my speech is worth $70,000/hour.

        I talk about world economics, trees, animals, forests, gold and silver and good people from my website.
        Who? Your mommy? You sound like a child...or a megalomaniac with that kind of talk. What's this website, oh great and powerful OZ?
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        • Profile picture of the author alistair
          Originally Posted by Horny Devil View Post

          Not without knowing the url and stats there's not.
          I'm not sharing the url as I'm not asking for people here to evaluate it, I'm looking for recommendations of legit services that people here might have used.

          Originally Posted by Presto Smith View Post

          Is is making any money? Is it full of targeted content? Does is rank at the top of the search engines for a given keyword? There are plenty of ways to determine the value of a website, but without sharing a link for us to review it is hard to offer advice.
          Yes about $???? a month. It ranks around spots 2,3,4 for it's main keywords and a little lower, 5,6,7ish for others. Most of these keywords cost advertisers about £60 (pounds) per click according to google keyword planner.

          Just to mention I can get it to the top spot with a little push but I've held off for the time being.

          Originally Posted by TheRealDudeman View Post

          Monthly revenue X 10 months of average income = website value. (income X 10)
          Because of certain laws in the UK this site would be worth a lot more to people in the related niche than it is to me. To put it another way, it may be making me some money but it would make them a whole lot more.

          Originally Posted by drr View Post

          Quite a tricky question. There may be several factors that would add / subtract from the value of a website such as:

          - Raw value of the domain. I think a post on WarriorForum today revealed that some photostock site just sold for $250k (domain alone). Excuse me if the exact number is off, I'm working from memory.

          - Type of income. If your site has recurring income, it's potentially worth multiples of a site that whacks off just one off sales.

          - Users/Members.

          - Quality backlinks, Alexa ranks, SEO punch.

          I'd be equally interested to know of a tool or site that could accurately value a domain or site. I guess the real value is pretty much what a buyer is willing to stump up to acquire it...
          It definitely has quality backlinks, and just a few sh!te ones too.
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    • Profile picture of the author cuie
      Originally Posted by TheRealDudeman View Post

      Monthly revenue X 10 months of average income = website value. (income X 10)
      Revenue is really worthless unless you make profit out of it. I'd use 3-5x net profit multiplier for the year. Site might make a hefty revenue but require costly SEO services for it.

      For example $200 profit / month = $2,400 / year => site value around $6,000–$10,000.

      But the real value is the one that the buyer is willing to pay
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  • Profile picture of the author mgsmith
    Both website's ranking and revenue is important to determine the value of your website.
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    Mike

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  • Profile picture of the author Adie
    Originally Posted by alistair View Post

    I have a website that somebody might be interested in buying. Without revealling income amounts, traffic numbers etc all I'd really like to know is, in case I get an offer I'd like to get an evaluation of what the site might be worth. Is there such a legitimate service that anybody here has used and could recommend?
    Here is the one that I've been using for years while selling sites at sitepoint marketplace before it became flippa. It's not 100% accurate but it will give you the closest valuation.
    Website Valuations and Appraisals, Value a Blog, Domain or other online Business
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    Moderator's Note: You're only allowed to put your own products or sites in your signature.

    Signature edited.
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  • Profile picture of the author cuie
    I wouldn't buy a website if those facts were not revealed

    Site profit + revenue are the key factors in defining value for a site. If it doesn't generate revenue then the revenue potential metrics come to play, such as traffic, visitor metrics, etc.

    Point being, you have to reveal those at some point so the potential buyer can verify your valuation.
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    • Profile picture of the author alistair
      Originally Posted by cuie View Post

      I wouldn't buy a website if those facts were not revealed

      Site profit + revenue are the key factors in defining value for a site. If it doesn't generate revenue then the revenue potential metrics come to play, such as traffic, visitor metrics, etc.

      Point being, you have to reveal those at some point so the potential buyer can verify your valuation.
      Thanks for your thoughts, and yeah I know I'd have to reveal the figures to any potential buyers and have done so already, just not going to reveal them here.
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