Value a website?

[vichousefc]

I know this is a little vague and open to much discussion (I couldnt find one on here) - is there a way to value websites?

I know traffic, cpc, income, pr, domain age etc all count but is there a really rough quick and dirty way to value one?

Thanks
C

 

[golddiggerguy]

I would say try and match it up to site sales from the past.

I'm sure theirs a site with sales amounts and site spec somewhere. If not why not people Theirs a domain prices site, see footer.

Examples only and just an idea.............. if the first site sold for £1250.

• GardenSpades.co.uk
• PR2
• income £25 per month
• 3 years old

Would be on par with

• WaterJugs.co.uk
• PR1
• income £30 per month
• 2 years old

 

[retired_member13]

Basically, to get a rough estimate, you can take its monthly revenue then mulitply by 12 and that is its selling value.

If you can find anyone who will sell you a generic revenue website for 12 months revenue then buy it.

The above is uninformed and blatantly untrue unless your selling a TM infringing cybersquatter type parked domain.

Generic websites would generally sell for between 3 and 10 years revenue (36 to 120 months) - eg Nokta's recent sale of CookingGames.com was on 8 years revenue - revenue was $4x,xxx per year, sales price was $375,000.

 

[deconstruction]

Generic websites would generally sell for between 3 and 10 years revenue (36 to 120 months) - eg Nokta's recent sale of CookingGames.com was on 8 years revenue - revenue was $4x,xxx per year, sales price was $375,000.

I agree, I was discusing this with someone the other day and they said they would pay up to 8 years rev.

 

[namealot]

Depends if your a buyer or seller ? many ways to value a web site/name ppc, revenue made, growth in area, market share, development, demand. What you will do when you have sold/bought it and selling it on in the future..? Could your knowledge be a selling point or pitfull in a future buy/sale of the site/name e.g you have contacts buyer/seller does not, Ratio of work/investment to profit for equivalent return? Profit % could make on other investments, Can, have you/owner maximised the potential name/site can make… Can you sell with a % of future profit, lease, The +'s & -'s selling/buying in the current market, Product, items, service, supply strength your selling/offering, Can you offer, manufacture it yourself? etc , Look at those that buy at high prices and sell at higher they seam to? have a structured business plan as a rule...?


I have seen oh so many sites/names for silly money both under and overpriced heard figures of 1, 3 5 10 etc years, X this and that revenue etc.(Some would say very easy to manipulate, If spending enough always try and get independently audited accounts) Fine if you can sell but oh so many don't ? Its easy to over and under price the hardest is too get it right? If you can do that you will make what you require.

Simplest way.. Is what you want as a return on your investment if you can make it either buy or sell .A standard business plan would give you a starting guide .

If your one of the ones that don’t really now much about names but were just lucky enough to have registered them early enough... Ask a financial advisors what you could get on £xx,xxx £xxx,xxxx and use it as a guide to what you wish to achieve..?

Age other than it is more likely to have been bought along time if its a good traditional generic word has little difference many new products items etc coming out everyday? sure some will disagree though

 

[dashu1]

It's tricky isn't it?

I had a discussion with a company recently about buying a site of mine. It's no.1 in Google and earns me aroud £1K per month from adsense - they'd obviously earn a lot more since they'd be dealing in a high value commodity.

I said £18K kind of off the cuff thinking 18 months was quite good, then read about the cookinggames 8 years revenue.

The cheeky bl**ders came back and offered £5K so I told them in no uncertain terms I wouldn't be selling for anywhere near that and 18K was the figure I'm looking for.

However, I'm now going to put the price up, so if they do come back I'm going to be asking for at least £50K and they can stuff off if they think they're getting it on the cheap.

It'd still be a bargain to them at that price.

 

[HariSeldon]

Generic websites would generally sell for between 3 and 10 years revenue (36 to 120 months) - eg Nokta's recent sale of CookingGames.com was on 8 years revenue - revenue was $4x,xxx per year, sales price was $375,000.

To be pedantic, although the buyer himself stated "revenue" I'm sure he really meant earnings (aka profit.)

 

[ribble-valley]

There are clearly many methods and factors determining the value of a website. Here's my two cents....

Made up example;

• "blue widgets"
• let's assume bluewidgets_com is number one in google for that exact search term
• to advertise with adwords and be higher than the organic number one may cost £1 per click
• assume 10,000 searches a month for that exact term, that's 120,000 searches per year
• Assuming 45% of those will generally click number one in the serps that's a total of 54,000 clicks, at £1 per click would £54k per year in adwords costs

So, if you are the owner of bluewidgets_com you've already got a rough valuation before any other site revenue of circa £54k, based on just 12 months worth of clicks.

Of course there are LOADS of other factors, including additional keywords and phrases but I consider this one pretty important.

I'd put this in to a mathematical equation but have been working on VAT today so my Vorderman mode is temporarily unavailable...