realistic101 — 2009-09-22T01:01:03-04:00 — #1
How would you analyze what is the real worth of your website?
As I have heard that best way is to analyze your website's worth to calculate the total of 10 months revenue? Is that true?
Are there ways to come up with the best value?
3six — 2009-09-22T03:42:15-04:00 — #2
Is that true?
No, it's not. My estimate is that less than 1% of sites sell for 10x. Others sell for 5x, 14.5x, 300x and various numbers in-between. The only way of knowing what the market will pay for your site is to ask the market.
fruitmedley_post — 2009-09-22T10:04:00-04:00 — #3
There is no simple formula for calculating the worth of a site. There are too many variables. What matters most to buyers is how much of money/profit they see the site making for them, and how risky those future profits are. The amount of work involved in maintaining the site and the level of expertise/specialist knowledge required also play a part.
I've written an article for Sitepoint on valuing websites. It may help with your question. It's a fairly detailed article but the graphs on page 5 should give you a quick idea.
buyandsellabiz — 2009-11-19T05:27:30-05:00 — #4
Valuing a website is not a easy process. I recommend you to seek professional advice. You can get your website valued from business agents for free on the website Daltons Business.
rainmist — 2009-11-19T08:55:53-05:00 — #5
Earning is the most important factor for your website.
namrata4129 — 2009-11-26T05:50:23-05:00 — #6
website depend on marketing promotion. Depend on website popularity and visitor.
ladyqueen1988 — 2009-12-05T06:38:42-05:00 — #7
You must be aware of your site future earning than past earnings. Just try to collect some info on link popularity, PR, backlinks and how mush can it earn in next 1 year and than decide your site price.
bwd8117 — 2010-12-15T22:14:46-05:00 — #8
General rule of thumb is 20X monthly revenue for a site that needs no work and is basically on autopilot.
benitez17 — 2010-12-15T23:22:42-05:00 — #9
No it's not.
Glad to see you could resurrect a year old thread to dump two links and post some inaccurate nonsense for your first post, two years after you registered.
bwd8117 — 2010-12-15T23:43:46-05:00 — #10
It wasn't nonsense. It was a general rule of thumb. I have sold websites on Flippa. My response was accurate, and much better than the list of non-answers everyone else posted.
tke71709 — 2010-12-16T08:02:47-05:00 — #11
It would have looked better if you hadn't blatantly tried to link drop 2 completely irrelevant links in your post and bumped an old thread in the hopes that no would have noticed.
benitez17 — 2010-12-16T23:47:44-05:00 — #12
- I don't buy that you posted for any reason other than to drop your links.
- An inaccurate rule of thumb isn't helpful. Other people will claim that the rule of thumb is 12 months, others will say 24 months, others will say 36 months, and so on. There is no rule of thumb, because every site is unique.
my_misyel — 2010-12-27T17:59:52-05:00 — #13
Actually, this one would be quite tricky. As it, there are many ways to evaluate the value of the site, then you might need to be familiar with them more.
jamescolin — 2010-12-28T02:40:59-05:00 — #14
I've never sold a website, I would, but it depends on the price I can get, as I have absolutely no idea how to get an idea, I don't sell.
Selling it as an auction is not an option because if it's too low I'm not interested, and at which price do I set the reserve price? How to calculate that?
This I don't know. But for me the 20x the monthly earnings would be a minimum for selling a site. I'll probably still be alive in 2 years, so why should I sell it really. It is to free me some maintainance time, ok, but if it is to spend this time creating another site, then what's the point? (I know, it's the money)
So I could be interested but really don't know and since it'd be the first time for me I'm an easy prey for any scam out there
hooperman — 2010-12-28T15:11:11-05:00 — #15
Because $2,000 in your hand right now is potentially worth more to you than 20 installments of $100 (that might dwindle to $0) spread out over 2 years?
jamescolin — 2010-12-29T09:26:03-05:00 — #16
Yes, if I would be in need for cash, of course I would see the advantage. But I'm now more in a passive income style of life now. I'm still working on old and new sites, but I already have earned money to be able to stop working for several years and start later, but it's just a way to continue playing my game, because I see it more as a video game than work to be honest, I always like computers, so earning money at first was to be able to have no boss and no customers, now it's more for the fun of the game, looking up my score (traffic & money)
But yes I can understand your point it's like: One "here you go" is better than two "I'll give you later"
tke71709 — 2010-12-29T11:47:30-05:00 — #17
Especially considering that it's more like "One "here you go" is better than two "I may or may not give you later"
Most serious investors buy and hold but there are reasons to cash out and flip a site here or there at times.
bwd8117 — 2010-12-31T17:34:27-05:00 — #18
You want to sell your site for as much as possible, so the only thing that matters is what people are willing to pay for it. If you have an established site that is basically on autopilot, I stand by my general rule of thumb that what they are willing to pay is 20X monthly profit. I think sellers deserve more for a proven revenue stream, but it's a buyers' market.
ezas123 — 2011-01-03T16:06:34-05:00 — #19
I sold at least ten sites in my web tenure thru sitepoint marketplace than later flippa. #1 thing buyers look for is means of revenue. Otherwise how do they get their money back? There's obviously a lot of other factors considered as well. But there is a direct correlation between amount of revenue and final sale price. Example: I once listed a site that had 1,000 unique visitors a day but revenue wasn't there and wasn't getting the bids I wanted. 6 months later after adding monetization techniques, I provide it was making consistent higher revenue and got the asking price. So, focus on monetization and the rest will follow
marcom10 — 2011-01-12T20:45:17-05:00 — #20
It all depends on what you're looking for in my opinion. Sure, most people look for revenue, but if you're like me, you buy sites that may not have revenue, but have potential. I would often scour flippa and buy sites with good interfaces, and cool concepts (usually web apps) and then promote these and flip them for a profit. So, you never know what you'll get for your site, it all depends on whose looking.
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