Valuing websites can be a tricky business, there is no set formula, and there are many factors involved. Today I would like to share with you 7 reasons that I will pay more for your website.

Revenue

Ok, revenue is an obvious one, but the fact remains that it is the single most important factor in your sites valuation. if you want me to give you tons of cash, then I want to see a site that is making good profits each month.

Domain Name

If your domain is hosted at blogspot or another free host, then I will most likely shake my head violently and move on. But if your domain is sex.com – then I will have my credit card in hand before you can say “website transaction”.

Brand

Are you the talk of the industry? Or does the mention of your website generate blank stares? The branding of your site can have a huge effect on your site’s value.

Web Design

The design of your website is not a major factor, but it will certainly have an effect on how much I am willing to pay. After all, if your site design looks like a baby has been sick all over it, then it may cost me $2k to fix the mess.

Traffic

More traffic = more revenue = more value = …… ok, I ran out of more =’s, but you get the point.

Google Love

Does Google love your site? On the Internet this is like being best friends with the president, and remember, good Google rankings = Traffic = Revenue… ok, you get the picture.

Inventory & Scripts

Does your web business come with $10k worth of DVDs? Or perhaps you have a complex custom script that cost you $10k to make? I can’t guarantee that either will add $10k to your valuation, but it will certainly have an effect.

Despite all of the above, the actual value of a site is simple = what someone is willing to pay for it. But hopefully this list will show you areas you can improve upon.

But it’s not all about price. The terms matter too as this article demonstrates.