Someone Interested in buying our website

[Rockzer]

Hello,

Well today someone contacted us, they are interested to buy our website, How do we estimate the total cost of the website ? I have recently started almost a year back. We in house write content for our own properties. Can you please help How to figure the value of the website. Does website niche is important?

Regards

[httpwebwitch]

first of all, ignore all the automated sites out there that will give you a valuation based on your Alexa score. They're complete rubbish.

One rule of thumb I've heard many times is: take the annual gross revenue the site earns, and triple it.

But the real answer is: whatever they're willing to pay!

[topr8]

NB. most contacts to purchase a website are just scammers. either they suggest you use a paid valuation service or they think your domain name is valuable but only want to offer a pittance for it.

IMHO, and doubtless others will disagree, the first thing to do in this situation is to ask them to make an offer... that is then the starting point of any negotiation.

only you can decide what the website is worth to you, based on how much you earn from it now and how much you will earn from it in the future and what you would do with the money that is paid to you for it.

[Rockzer]

Topr8,

How we can evalute our website price any idea about the same, Because I read on many sites what is your current montly income you have to multiple with 40 is this correct ? I am unsure to whether its a correct way to evalute your website.

Regards

[topr8]

... there is a constant drone of people asking here, how to evalute their website.

there is NO definitive answer, there is NO magic formula.
it's different depending on the business, the buyer and the seller.

and when it comes to it:
if you want to sell - then whatever a buyer (if you can find one) will pay is what it is worth.
if you want to buy - then whatever the owner is willing to sell for is the price.

[eelixduppy]

While I agree there is no definitive answer and a real estimate would require a professional, you can get a decent understanding by looking at
1) your current and historical financials (looking at something like operation, financing, and investment totals)
2) your competitors/comparable companies to gauge relative worth/growth/etc
3) your industry/niche as a whole which may be in a specific business "cycle" and as such may affect your current financials

Addressing these points will also help you justify any of your asking prices.