Domain Manage

'Niche' Website Valuation Factors

Discussion in 'Domain Research' started by retired_member25, May 13, 2010.

Thread Status:
Not open for further replies.
  1. retired_member25

    retired_member25 Retired Member

    Joined:
    Mar 2006
    Posts:
    549
    Likes Received:
    5
    Hi Guys,

    I'm looking for opinions on the extent other website factors have in the valuation of a website other than the multiple of monthly revenue.

    I say this because I have a relatively old (3 years) old minisite in Google which is the only site monetised within it's niche (as in no obvious competition).

    The site is aimed at students, and due to the subject matter i'd say it would be only students who are currrently in university visiting the site.

    The site isn't great, it hasn't been updated for an age and aesthetically needs beautifying - However to what extent do you guys think the following have an impact on the overall resale value -

    Website Age - 3 years
    Dominating Niche for most relevant keywords
    2/3k unique student visitors per month

    The site makes between £15 to £65 per month from adsense. This changes monthly.

    Do you guys think the added value factors above significantly impact the potential resale price, or do you think the adsense income alone is the only significant bearing on value?

    Cheers
     
  2. Domain Forum

    Acorn Domains Elite Member

    Joined:
    1999
    Messages:
    Many
    Likes Received:
    Lots
     
  3. ScottJ United Kingdom

    ScottJ Well-Known Member

    Joined:
    Nov 2005
    Posts:
    1,406
    Likes Received:
    13
    As a buyer in my view;

    Age - yes the older the site the more desirable and sell-able it would be, especially if you were looking for more than 18-24 months x net income. You would need to be able to show stable traffic and or income across that period though so good age can increase the multiple on income.

    Dominating the niche - is good but a double edged sword, being in position 2 or 3 for the main keywords can show good potential for further earnings, conversely being ranked no.1 could be a worry, it can be a big drop in traffic/income from 1st to second so again site age can help counter that concern if it has long/stable rankings.

    Traffic - relative to the industry and income, always helps but 100 visitors per day can earn more than 10,000 visitors per day in different genre's so those numbers in themselves are not overly important unless the site is clearly under-monetised.

    Basically current earnings plus age/stability plus any obvious increases in available income are the main points for me when glancing at a site for sale and can help justify paying 36 months x income in cases.
     
  4. suzi United Kingdom

    suzi Active Member

    Joined:
    Apr 2008
    Posts:
    534
    Likes Received:
    8
    Surely that can be far more important than all the other items - perhaps linked to unique visits.
     
  5. ScottJ United Kingdom

    ScottJ Well-Known Member

    Joined:
    Nov 2005
    Posts:
    1,406
    Likes Received:
    13
    Not more important than age/stability, for me. But almost all factors carry weight without being in any defining order.

    A new mini site could quickly get into the top 5, be unmonetised and suddenly get traffic or get traffic from the current owners own network, that would not necessarily make it more valuable or attractive than a site that had already been in the top 5 for the last 2 years which had most income streams explored.

    I would also add unique content to the list of factors that I generally look for.
     
  6. aZooZa

    aZooZa Well-Known Member Exclusive Member

    Joined:
    Nov 2005
    Posts:
    4,495
    Likes Received:
    92
    Yeah - that stood out for me - 2-3k unique student visits per month making that little? That's potentially very valuable traffic!
     
  7. RSK3000 United Kingdom

    RSK3000 Active Member

    Joined:
    Sep 2007
    Posts:
    380
    Likes Received:
    10
    I would consider.....

    Age
    Domain name length and the extension
    Keywords in domain and if it is brandable or generic
    Type-in traffic
    Revenue generating potential
    The amount of interest in the niche and whether site visitors have any money to burn
    Dashes, unexpected spellings, using numbers instead of words etc may hurt valuations
    How much have similar sites/ domains sold for
    'X factor' - some domains have it, others dont!
     
  8. retired_member25

    retired_member25 Retired Member

    Joined:
    Mar 2006
    Posts:
    549
    Likes Received:
    5
    Thanks for the advice chaps, I think it may be time to put some love into this site, however it's interesting to hear that a site without unseen revenue streams may be more interesting to buyers compared to an full tilt monetised site. Cheers.
     
Thread Status:
Not open for further replies.

Share This Page