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How do you put a value on a website?
Is there a value for Pagerank? What about value for backlinks?
jimbobway

10+ Year Member



 
Msg#: 3383 posted 1:13 am on Dec 31, 2005 (gmt 0)

How does one go about valuing a website for the purpose of selling or buying one?

I've been looking around looking for a price to set. One site says 10x yearly earnings could be one factor.

There seems to be multiple factors too.

What does everyone think?

Is ebay the best place to sell it?

[edited by: Webwork at 4:03 am (utc) on Dec. 31, 2005]
[edit reason] Charter [webmasterworld.com] [/edit]

 

Webwork

WebmasterWorld Administrator webwork us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3383 posted 4:11 am on Dec 31, 2005 (gmt 0)

Hi jimbobway and welcome to the WebmasterWorld Domain Forum.

I'd suggest you start by taking a look at this thread:

[webmasterworld.com...]

It looks at domain valuation but there's a lot of overlap in the thinking.

PR isn't much of a factor as it's 1) ephemeral (in many cases); 2) can be rigged and therefore lost; 3) isn't a real core value when it comes to websites; and, 4) isn't the same as "website rank".

Regarding backlinks, a lot depends on the quality of the links. Are they from accepted authority sites? Are any from bad neighborhoods? Etc.

I'm certain others will chime in.

Please take a moment to read the Domain Forum Charter. It will help guide your future posts so that you get the best feedback.

topsites



 
Msg#: 3383 posted 3:13 am on Jan 2, 2006 (gmt 0)

I've been wondering about this myself...

I tried Sedo once and was rightly disappointed, thou from what I hear it may be worth it. In my case I had a personal problem with the 'system' they have it all set up in a way frustrates me, I never got my eval thou they swore they sent it to me via email, blablabla, it was a mess... But, sedo is bigtime, it is quite possible mine was one out of a thousand bad experiences, and may be worth a shot.
They evaluate domains and if you want an evaluation for a live site that you think might estimate in excess of 10k, then it will cost some money. However, once the site has been evaluated thusly, it can be put up for sale on Sedo itself, and is one of the more popular site-sale grounds. I think the address is sedo.co.uk but I am not sure.

Years ago I put up my site on ebay for sale, mostly for kicks but also to see maybe some bids would give me a guideline. Unfortunately, a reserve would have required me paying a percentage upfront so I put up a high starting bid and let it go at that, basic listing no extras no fancy ads, only the basics.

I didn't get much intended satisfaction out of this, but my site did gain several thousand visitors over the next 90-120 days via some engines, so about every 4-6 months I would re-list the site... Sadly, this bug eventually got fixed but while it worked, I was loving the traffic, I likely got 20 thousand visitors over a 3-4 year time-frame, all for maybe 100-200 dollars. :)
It was better than ppc by a mile, to this day I love ebay :)

In the end I did get ONE offer for 2 thousand dollars and this got me to thinking, and hard:
- I've been working on my site going on the 6th year, and even thou it's part-time work, had I done it all full-time 12-16 hours/day 6 days/week, it would still have taken at least 1 year.
- Revenue-wise, a lot is left to be desired. I think I finally got it to where I can earn a few hundred per month (2 or 3), but only time will tell, as of now revenue covers the cost of the server and a little extra, I almost have free Internet.

So, labor-wise I feel the site is worth around 20k (one year's salary), the fact that it does at least pay for itself is worth something as there does exist a regular visitor AND customer base, and so on... But at the same rate, whatever price the site would sell for, the revenue of the site SHOULD be sufficient to make the payments on the loan and it can't take more than 5-10 years to get it paid off, while it leaves a little for the new owner to put in his / her pocket.

I did try the valuation on one of the other threads...
The optimist in me came up with a price of 60k.
The pessimist hardly scored 3,750 - It largely depends on that very first number in my case, I start with a 1 or a 0, and if I start with the 0 then all the below multiplication does nothing.

Thus, I have a problem, lol. But, that gives me ideas.
Of course, I am always interested in other points of view.

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