Valuing a website...

[twostepsbehind]

Hi,

I've had my eye on a website for a while and the owner got back in touch recently.

How much should I offer roughly?

3 x yearly earnings + goodwill for the domain seo value + goodwill for email subs list ?

Or is there a better equation?

Ta

 

[dazc]

One year's earnings plus a premium for how much you really want it. A website's revenue can fall dramatically at any given moment so to value beyond what you can earn from it in a year is a very risky strategy.

 

[Adam H]

Impossible question without knowing the type, quality, revenue, traffic and domain. 3x year earnings on a site earning a tenner a month from amazon associates, or 3x times earning from a ecommerce store that's consistantly generating sales without marketing for 3+ years. Big differences on the type of revenue, how its generated and likewise traffic and SEO value.

I always offer what i consider to be a value I'm prepared to lose. More often than not much much lower than any kind of multiple.

 

[twostepsbehind]

So, these are the stats I've been given:
£60 a month in AdSense
10k pageviews a month
35k active subs for their newsletter - what I'm after

SEO - it's page1/2 for it's most common search terms - against some other SMEs that are the top players in this niche

I offered £2k - I thought this was way overpricing, but I want it - he's saying £5k...

 

[Adam H]

Are the subs post GDPR or requalified since GDPR? have they been revalidated recently ? Personally I wouldnt have offered half what you have unless the site revolves around a high ticket item and the expense could be retreived fairly quickly with those SEO stats and email list.

That said, if its a niche you are in or want a head start in and you know it will benefit you, then offer what you consider it still being a benefit.

 

[twostepsbehind]

The plan is to rebrand on a new domain and forward this domain - £2k is highest I'm willing to go - so I guess I'll have to move on now...

 

[RobM]

If it is constant established traffic I would value it, based on those figures, at £2500. Especially if I intended to earn more than the paltry adsense model from the traffic.

 

[twostepsbehind]

On further inspection of the email sub form on their website, it isn't GDPR compliant

Plus, he asking for double what I'm offering - so that's then - I guess I can invest that money in SEO/PPC to build my own list hopefully