How to Value a Website - Best Blogs Asia
This is how I would measure the value of my own sites and domains.
I was inspired to write this as Self Made Minds is buying up sites with 12-18 months worth of income and that lead me to think, how would I measure the value of my own sites and what would be the ideal price range for them?
Domain Value
In my opinion a .com, world-wide recoginisable, keyword efficient domain is king. However, find one of these is next to impossible without paying a tidy sum so what else do I look for in a domain’s value?
- Marketability
- Name Length
- URL type
- Brand Recognition
- Development Value
- Site Traffic (Natural and by SE’s)
Website Value
The actual website itself may be worth more than the domain. You also need to take into account whether the site is established, comparable costs to create something similar, time taken to update the site as well as the following:
- Profit, revenue, liabilities, expenses, assets
- Subscription/Loyality base
- Scalability/Growth trends
- Unique content
- Backlinks and Pagerank
Website Value Tools
The most accurate would be to see screenshots/access of the site’s log files and the actual financial statements. However, using the following will also help:
How to buy or sell a Web Site
I think following a system of multiples, i.e x12 times monthly revenue is flawed. Multiples should be determined based on the expectation of future profit of the prospective web site, not from other people. A fixed figure from the buyer to the seller should be offered.
The best way to is to contact the buyer/seller directly, so make sure your WhoIs contact details are upto date. Other ways includes:
- Promoting the actual sale on the website itself (short term)
- Use DNForum and NamePros (Long term)
- Ebay and Digitalpoint (Optional)
