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Value of a Website?

I got an offer to sell...

     
7:19 pm on Oct 11, 2005 (gmt 0)

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I was quite shocked when I received a commercial offer for my website - the potential buyer offers a 5 digit sum for it.
In this case, "it" means the domain plus the content.
Considering that I started the site as a hobby, that's a lot of money.
On the other hand:
- it now has a Google PR of "6"
- it comes up as result number 1 and 2 of "about 179,000,000" for a highly competitive two word combination on Google, as result 5-6 of "about 122,000,000" for another two word combo and 6-7 of "about 54,100,000" for a third one - quite a good standing, I think
- the Yahoo "Link:"-command finds 5,940 links, many of the links are deep links

Is there any way to find out what the domain itself (not considering the content...) is approximately worth?

Laurenz

4:02 pm on Oct 12, 2005 (gmt 0)

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is there nobody who could help? Or isn't this the appropriate forum?

additional info: according to the webstats of my ISP, the site has about 4000 unique visits/day Alexa puts it on position 68000.

Laurenz

6:02 pm on Oct 12, 2005 (gmt 0)

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Website values have been discussed many times here at WW. Here's a link that will lead to a few of the threads, scan through the results and pick out the "value" threads.

Website value threads [google.com]

It's a fairly often asked question, and pretty hard to get a definitive answer to.

And here is a similar link that might help find threads more specifically about domain values.

Domain values threads [google.com]

1:56 am on Oct 13, 2005 (gmt 0)

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Thanks! Actually, I found most of the discussions before posting here, but the problem is that they focus on current profits/earnings as basis for the appraisal.
As I said, this was "just" a personal site for me, so I did not try to make any money off it so far.

Is it posible to determine the potential value from the stats / search engine position alone?

Laurenz

5:50 pm on Oct 28, 2005 (gmt 0)

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Some time the domain name alone itself a high value while nothing to do with the site, it might be possible in your case.
6:06 pm on Oct 28, 2005 (gmt 0)

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Is it posible to determine the potential value from the stats / search engine position alone?

Webmasters not in the buying and selling of websites seem to think the valuation of sites is not far off from the valuation of commodities like second hand cars. Have a look in the guide book, follow the row and column relating to your car's age and mileage, and bingo! a price. Different guide books published by different places may have your car valued at $25,400 or $24,800 or $26,150. That's not how it works with websites.

If you are selling based on income then browsing the places where sites are bought and sold should give you an idea of what multiple you can ask for. Not making money from your site? Hmmm. Every content site owner thinks his site is the bees' knees but fails to realise that probably the most difficult part of this whole game is monetising the content. And there are millions of content sites but no second hand car prices type guides to value. So, it falls on prospective buyers to value it however they fancy. The values could vary from $500 to $5 million and there's no saying what's too much or what's too little (The $500 offer may be from a buyer who realising your entire SE rankings can be wiped out with one Florida or Jagger and is therefore not far off worthless). In such a market your only options are to see what the maximum each buyer is willing to pay and decline to sell your site if you're not satisfied with the figures.

6:13 pm on Oct 28, 2005 (gmt 0)

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As I said, this was "just" a personal site for me, so I did not try to make any money off it so far.

Do you run adsense on it now, or is there any revenue from it now? If not, I would first experiment with that to see what kind of income you can make from it. That might turn out to be bigger over the course of a year or two than what you can sell it for.

6:17 pm on Oct 28, 2005 (gmt 0)

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Laurenz -

How much traffic do you get per day (visits, not hits) and in what sector?

Oddsod's points are valid but buyers often will need only from traffic and sector to make an offer if you are not currently making money from the site.

Ideally, a buyer wants several years of such info including revenues, and typically most buyers will pay in the neighborhood of 1-2x annual earnings for small sites. As sites get large one expects to pay more of a multiple of earnings. Take Google for example - it's selling (as shares) for about 100x earnings.

6:25 pm on Oct 28, 2005 (gmt 0)

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Hi,
Here is a way to determine the value of a site.

*Put some PPC ads
*Get an earnings per year value from these PPCs
*Check the current interest rates
*See how much capital will generate as much interest as the revenue that you calculated.
*You have your fair value

7:03 pm on Oct 28, 2005 (gmt 0)

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a1call -

Dude get out your wallet and show me the money...

Seems logical but does not apply to online biz, I think due to the instability of search rankings and the online environment in general.

Note that even in conventional small biz valuations 5-6x earnings is used rather than your metric. This is pretty standard for offline biz valuations.

9:53 pm on Oct 29, 2005 (gmt 0)

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Just information on web Postioning and traffic, will not give you accurate value of the site at all.

A website with only 100 unique visits per day may sell for 10 times mor than another with 1000 visits per day. It also depends on the content of the site, income/profitability of the site, the type of keyword density (and its overture rate).

and most importantly, accdg. to me, the difficulty/ease of other websites copying your website! No matter how profitable your website could be, website is not much worth if can be copied easily.

------------------
Mark

[edited by: Woz at 12:57 am (utc) on Oct. 30, 2005]
[edit reason] No SIGs please, see TOS#13 [/edit]

11:15 pm on Oct 29, 2005 (gmt 0)

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due to the instability of search rankings

That's why a1call pointed to traffic with PPC - your free traffic can disappear any moment but PPC traffic is reliable.

 

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