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Still can be a somewhat useful tool to get a real rough idea of site usage. (ie a site that claims 250,000 uniques / month with an Alexa rating of 340,000 probably is out of whack)
It is not a good idea to consider alexa rankings when buying a website because they can easily be manipulated. There was a lot of talk about people selling domains after having an army of offshore clickers boosting the sites ranking.
is a correlation chart put together by sites willing to submit traffic rank and actual traffic. Another data source that I sometimes use to correlate predicted traffic based on estimated web presence is data from the brochure of a banner advertising company with traffic for their client sites:
follow this link [initgroup.com]
It's quite interesting to see how much traffic sites in the Multimap and Friends Reunited league actually get.
I can see some dropping when being away for 3 days to about rank 120'000. AWstats shows about 2000 different users a day and Nedstat shows about +4000 visits a day - not really changing when I'm away.
For well visited sites within the statistic of up to rank 100'000 I would say that there is a rather good indication about the traffic but not more. Up to rank 20'000 I would consider it reliable.
It is (today) not true that an administrator can run it down to 20'000 as has been said in other threads. We only can hope that this indicator for comparison of diffeerent pages can grow to a reliable tool for us.