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How Much Might Your Website Be Worth?

How Much Might Your Website Be Worth?

Whether you want to sell your website or you are just willing to know how much you have potentially earned so far, you might be curious to know how much your website is currently worth. Like with selling a business, trying to determine your website price is really hard to do: so many factors might come into play:

  • your own money, time and labor invested in it;
  • your site statistics (income, traffic and traffic sources, inbound links, popularity, etc);
  • the site potential (e.g. new but promising niche, rate of growth, etc);
  • target audience; etc.

A few most popular approaches to estimating the site growth say:

1. Traditionally, the site selling price = 10 x annual profit + the cost of real assets.

2. Other mathematical approaches include:

  • the site selling price = 2 x last year’s total revenue;
  • the site selling price = 5 x average revenue.

The overall mathematician approach can be criticized as each website is unique and it can’t be evaluated by a simple formula. In this perspective I like an old discussion at WebmasterWorld:

[Say,] I own and it makes $40 profit a month. Using the x10 valuation method, that site is only worth $400.

Now if I own and it makes $100 per month, that x10 valuation method says its worth $1000.

If you had $1,000 to spend, which site would you buy?

3. My favorite method of determining how much a website it worth is the one by Yaro Starak:

Your site is worth as much as someone is willing to give you for it.

A wealth of online valuation tools attempt to determine a website asset worth based on a variety of factors (besides evaluating any website price these tools might be a good source of overall website info):

1. SmartPageRank looks into the domain age, Google PR (broken right now), Yahoo! directory and Dmoz presence, backlinks (per Google and Yahoo), indexed pages (by Google and Yahoo), and Alexa traffic.

My site estimated value: smartpagerank - website value

2. DNScoop estimates a website price based on six metrics:

Links, traffic (Alexa), age of the domain, site category, domain keyword popularity, and overall occurrences of the domain name on the web.

My site estimated value: dnscoop - website value

3. CubeStat seems to consider a plenty of data: daily pageviews, daily ads revenue (source is unknown), Alexa rank, Quantcast rank, Compete rank, Google PageRank, backlinks, Google indexed pages, Google indexed images, Yahoo indexed pages, Live indexed pages, Dmoz presence.

My site estimated value: cubestat - site value

As you can see, the three tools disagree as per one and the same website worth – this brings us back to approach #3, I guess. And how do you determine your website current price?

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Ann Smarty Brand amd Community Manager at Internet Marketing Ninjas

Ann Smarty is the blogger and community manager at Internet Marketing Ninjas. Ann’s expertise in blogging and tools serve as ...

How Much Might Your Website Be Worth?

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