Site Value

How do you determine the advertising value of a site?

[totage]

Hello,

How do you determine the value of a website? For example, if you wanted to place an ad on a site, what factors would determine the worth? If anyone could help it would be greatly apperciated.

Thanks,
TOTAGE

[teasers]

I think the site must be associated in a way with the advertising, but the most important thing I think is the quality of the traffic.

[pcgamez]

A couple of things need to be taken into account. This includes the amount of traffic, where the traffic is coming from, number of ads already on the site, and the type of site being advertised on.

[totage]

Hello,

Thanks for the replies. My site has six text ads that are displayed at the very top of every page. I get an average of 103 visitors (6,260 hits) each day.

Thank you,
TOTAGE

[edited by: eljefe3 at 4:02 am (utc) on Sep. 25, 2005]
[edit reason] no specifics please [/edit]

[ska_demon]

I think I read something here at WebmasterWorld along the lines of:

A site is worth about 12 times its annual profit.

So, I suppose if your site makes $20 a year then its worth $240.

When it comes to selling a site it is only worth what someone is willing to pay for it. If someone can see potential in the site maybe they will pay more.

Ska

[pcgamez]

I think that is rather misleading ska. That may be true for very large sites with the potential for huge growth. Most sales of smaller sites I have seen generally use 2-4x yearly revenue (max).

[totage]

Hello,

Thanks for the help. I really apperciate the posts.

Thank you,
TOTAGE

[ska_demon]

I think that is rather misleading ska.

Ha ha I think that's twice this week I have been quoted as 'misleading' ;oP

I did say I had read something HERE at WebmasterWorld.

This discussion has been had many times and I still don't think we have a conclusive answer. A site is only worth what someone will pay for it IMO.

How do you determine a sites value?

No. of pages?
Annual Turnover?
Annual Profits?
Daily/Weekly/Yearly Visitors?
SE rankings?
Design?
PR?
Amount of time to build the site?

Just a few of many things to consider. But how do you put a value on these things?

eg

If Site A has good rankings and a lot of free SE traffic does that make it more valuable than Site B, a low ranking site with little SE traffic?

The high 'free' traffic site may not convert due to bad design or whatever. It may even get dropped from the SE's next update. (perish the thought)

The low ranked site may convert exceptionally well but needs say, ppc ads to drive the visitors to the site. It makes way more profit than Site A ever will and doesn't rely on SE traffic at all.

Which is more valuable?

I suppose it depends on what the site was designed for in the first place.

Just thinking aloud

Ska