There have been many threads started with the question "How do I value my website/domain".
I just sold one and how I sold it goes against most of the threads I have read.
Vertical- E-commerce - Health/bodybuilding related.
Starting up a new site in todays environment is harder than ever so many new or expanding webmasters are looking at existing website's that have an organic presence.
Most buyers try to value the domain on name and generated revenue. I sold mine on domain name/age and traffic.
If I tried to place a value on the income I wouldn't have gotten close to what I ended up selling the domain for.
The buyer tried to bring this into the price but I countered with the cost he/she would have to spend on PPC for the qualified traffic the site was bring in. At 500 hits a day average CPC at .80 well you get the picture.
I gave them access to GA and focused my negotiations on traffic. This lead the buyer to triple their 1st offer, and come very close to my 1st counter offer.
I know this Vertical, I know the margins are just not there to spend on PPC and expect a profit, most bid and hope to get return buys, so I held my ground and got what I wanted based 75% on traffic.
If you have been contacted by a possible buyer and the site has good organic traffic with a low profit focus your sale on traffic and price it based on PPC. The high PPC areas you value the traffic higher, say in the legal area at 500 hits a day I would value the traffic at 3.00 CPC. 1500.00 a day saved is a huge deal don't be intimated by your website profits focus the sell on how much the buyer would spend if they had to get the same traffic through PPC.
This worked for me.