How much is my website worth? & How do I value my website? are two of the most common questions we get asked. Unfortunately the answer to these questions is a bit cryptical……
A website is worth as much as someone is willing to pay for it
There is simply no easier way of answering the questions than this.
However, if you are not actively looking to sell your site but you are curious to know how much it costs, then this answer doesn’t really help. Also, it helps to have a rough idea how much your site is worth BEFORE you list it for sale.
If you are looking for a rough guide to your sites value, then monthly revenue x 12 is used as a basic guide. Many site sellers will claim this figure is only used on very cheap sites, but they are mainly saying this to get more than x 12.
There are exceptions to the above, here are factors that may change the figure.
FACTORS THAT INCREASE A SITES VALUE ABOVE X12 MONTHLY REVENUE FIGURE
*being highly established
*Large pagerank (pr7 or above)
*Authority site (dominating your niche)
*Large member base (10,000+ members)
*large opt-in list
*Very high rankings in the search engines
*consistent growth over a number of years
*Expensive custom work (e.g expensive site design, custom coding, custom scripts not found anywhere else)
*Huge room for potential (be careful with this one, in theory every site on the planet has room for improvement)
FACTORS THAT COULD LOWER THE X12 MONTHLY REVENUE FIGURE
*Banned from the search engines
*Not been promoted
*Bad reputation in the industry
*Huge amount of competition
*Little or no room for growth
*is a site with a low expected life span (e.g a site for a new computer game)
*is a site that can be easily replicated (e.g arcade sites, proxy sites, myspace sites)
*is hosted on Blogspot or related sites
*has a potent copyright infringements in the domain
*is very expensive to maintain
*requires a lot of work to maintain (e.g a blog where the seller is the only author)
The above is just a rough guide, there are potentially hundreds more factors. The above should be enough to give you a rough estimate of your sites value, simply start at x12 and add one month for each of the factors your site has in the positive factors section, then deduct one month for each factor your site has from the negative section.
e.g my blog makes an average of $1000 per month, so x12 = $12,000 site value.
However, my blog is pr7 and has high search engine rankings. These two factors are from the positive factors section, so I add two months to my valuation = $14,000
But my site requires a lot of work to maintain and is hosted on blogspot, so I remove two months value. Therefore leaving me back with a valuation of $12,000
I hope this helps, and remember, if you want a team of professionals to help value or sell your website, then contact Midascode today!
Written by Dean Hunt