Site valuation question

3 replies
I had someone contact me interested in purchasing one of my sites. I have only sold one other site and that was a few years ago. Any tips on valuation or not getting scammed? I think it is a legit email, but one never knows for sure. The site currently brings in between $1500 - 3000/ mo with no work or expense involved. It varies so much due to a Google kw ranking going from pg 1 to 2. Most likely I should just keep it, but it peaked my interest. Thanks for any input.
#question #site #valuation
  • Profile picture of the author Adrian Cooper
    Websites are way, way undervalued usually - because Internet people approach website valuation like IM - whole new attitude towards money etc.

    A business is valued broadly on a multiple of earnings - not sales.

    Also very important is whether sales are consistent and above all increasing.

    Most IM sites show steady sales, but the value falls dramatically if the site is dependant on Google or other sources of traffic beyond your control.

    Membership sites are the most valuable followed by sites that use AdWords to promote them, because AdWords are controllable and not subject to external influences.

    I would value your site at around $10K because it is based on Google rankings. Value therefore has to take the huge risk into account of the site dropping off Google and sales falling to zero.

    A membership or AdWords based site would be worth up to $50K on those sales depending on actual profits and revenue stream.

    If you are being offered $15K+ I would seriously consider the offer, otherwise keep working on the rankings and maybe add some AdWords to it.
    {{ DiscussionBoard.errors[863582].message }}
    • Profile picture of the author Jill Kane
      Thanks apc01! I appreciate your helpful response.


      Originally Posted by apc01 View Post

      Websites are way, way undervalued usually - because Internet people approach website valuation like IM - whole new attitude towards money etc.

      A business is valued broadly on a multiple of earnings - not sales.

      Also very important is whether sales are consistent and above all increasing.

      Most IM sites show steady sales, but the value falls dramatically if the site is dependant on Google or other sources of traffic beyond your control.

      Membership sites are the most valuable followed by sites that use AdWords to promote them, because AdWords are controllable and not subject to external influences.

      I would value your site at around $10K because it is based on Google rankings. Value therefore has to take the huge risk into account of the site dropping off Google and sales falling to zero.

      A membership or AdWords based site would be worth up to $50K on those sales depending on actual profits and revenue stream.

      If you are being offered $15K+ I would seriously consider the offer, otherwise keep working on the rankings and maybe add some AdWords to it.
      {{ DiscussionBoard.errors[864208].message }}
  • Profile picture of the author TheRealDomainer
    Hi jfkane,

    You can download a free book on how to go about this at http://www.warriorforum.com/warrior-...tml#post862400
    {{ DiscussionBoard.errors[863880].message }}

Trending Topics