I own a website I am thinking of putting up for sale. Some basic information on it: - high quality unique content - niche topic - roughly 300 visitors/day - continuously on the rise since the site was launched in 2007. 85-90% through search engines. - about $1000 /year through adsense - continuously rising since 2007 - no maintenance, site hasn't been updated much for over 2 years
What is a reasonable price I can expect for this site?
I'd consider the strength of the cash flow in fixing a value.
Multiples of income work best where there is certainty about the inputs and income.
Certainty of income, when it comes to the WWW, is far more predictable when a website has a vast array on inbound links - especially from quality sites - as that tends to a) offset traffic loss due to finicky search engine love; and, b) tends to be an insurance policy against such finickly love since a search engine that doesn't get why your site is so loved is one that is not likely to last.
Look at what an annuity would cost that throws off $X. How much will that cost?
How close is your website and its income stream to an annuity? The closer it gets the better the analogy when it comes to setting a value.
IMHO, the "multiple of income" model is a lazy-easy model. Are humans lazy-easy? Sure, more than a few. Therefore the model is popular.
Website value - once you are speaking of truly valuable resources - is not such a simple matter. However, the VAST majority of websites are far simpler to evaluate.
Look at the "pinned" thread (up top [webmasterworld.com...] ) for a few lengthy discussions about valuing websites and domains.