How to Value and Appraise Websites
If you’re looking at selling one of your old websites or possibly acquiring one to add to your network or publishing empire, Todd Malicoat has a brilliant write up on how to value or appraise sites. Todd lists appraisal tools, revenue models, site evaluation equations, and domain value.
From Todd’s Stuntdubl SEO site :
If you own a website, you should understand how to buy or sell one. Buying and selling is at the basis of any viable business. The web business sure has changed the ways of thinking about business with wild valuationn, deals with incredible return, and everything in between. During the first dot com bubble, ALL rules of business somehow magically flew out the window.
There was a sense of urgency during the first bubble to “get in on the ground floor”. Even pet food was going to be sold online by sockpuppets! Hindsight is 20/20, and a lot of the promise of the web that was founded on business principles is returning after confidence has returned. Now investors are more skeptical, owners are more savvy, and everyone still wants to get in on the promising ground floor.
Todd’s post is quite informative and timely, as buying sites has become an affordable alternative to paying for years of advertising on them. Hopefully Todd’s post will also help to form a fair market scale of site value, for the benefit of both buyers and sellers.