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Value of a website

 
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All Forums >> Web Development >> Search Engine Optimization and Web Business >> Value of a website
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_gail

 

Posts: 2876
From: So FL
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Value of a website - 9/10/2004 8:29:15   
If you were going to sell a website, how do you determine it's monetary value (assuming it has one)?

Also, are there website "realtors" so to speak?

thanks,

gail

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erinatkins

 

Posts: 3072
From: Mechanicsville VA USA
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RE: Value of a website - 9/10/2004 12:34:14   
I have heard that this company will give you values -

http://www.website-value.com/

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(in reply to _gail)
Mojo

 

Posts: 2441
From: Chicago
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RE: Value of a website - 9/10/2004 12:35:59   
gail,

I have sold several websites over the last year or so and I can tell you there are few hard and fast rules. I also plan on selling more sites in the near future, so while I hope things change, I will present my honest views on what I see happening. My opinions are NOT immutable nor can I hope to post all things about all kinds of sites... so if you have other experiences - lets hear them.

The value of a site varies depending on how the sites generates income.

Affiliate, advertising, Adsense type of sites are often sold for less than 12 months profit. I have seen a few aff sites sell for 6 months profit. The biggest reason for the low prices seems to be the fear that the driving force of those sites - search engine results (SERPs) - can change dramatically overnight and the site would no longer generate income. If you can prove that your site is old (lets say over a year) and that the backlinks supporting the site are NOT from your own network and that your not breaking any of the lame rules set up by the SE's - then you may get much more. Solid Adsense sites seem to go for 12 months income or more on a regular basis.

EComm sites where you sell someone else's product don't always fair as well. With the cost of admission less than $10,000 for a decent eComm site it can often be difficult to sell someone a $100,000 site no matter how solid it is. If your site relies upon the SERPs in order to be profitable it can be even more difficult to sell it since a single algo change can whipe out your income.
An eComm site that is profitable with a variety of paid advertisments can actually sell better since your not at the mercy of the SERPs. Most seem to be selling for a couple of months profit. It you have an affiliate program in place it will increase your selling price. Again, 12 months profit would be a nice selling point, but I don't see many sites selling at those margines.

EComm sites, where you manufacturer the product can sell very well. Since you make the product, you control price points and also can more easily run an affiliate program and have an army of sites selling for you. Look for 2 years profit. If you also have your product in brick and mortar outlets then you can look to sell for 3 years profit.

A couple of things that will affect your final sale price:

If you built up a brand name so that your site or product is known as a leader in your market will help tremendously. If other sites are linking to you without being paid or having a reciprical link you will know your starting to lead rather than follow.

A POWERFUL domain name can add a *significant* amount to the value of your site. For example, if you sold baby bedding and you also owned babybedding.com you would have a huge boost in your sale price. Babybedding.com likely has over 1000 people per month directly type in the URL of their website. At only 0.50 cents per click that would be at least $500 per month or $6000 per year of free advertising. Factor in the amount of sales from having that many TARGETED visitors and your looking at some nice numbers. If I were in that industry (which I AM) I would mortgage my house to purchase that domain - if they were selling. Which they are not.

It can take a while to sell a site unless you have something that a lot of people are looking for and your selling it at a great price.

There are many places to sell sites online. Some of the best are forums. Sitepoint has a forum where people list their sites as do most domain name forums. Sedo.com has a big name and will also sell your site. One of the best places to sell your site is right on the site itself. Have you ever drove by a business and there was a for sale sign out front? Something like that works well. Just a tasteful link on the page indicating your site is for sale.

I hope this helps.

Joe

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(in reply to _gail)
_gail

 

Posts: 2876
From: So FL
Status: offline

 
RE: Value of a website - 9/10/2004 12:42:47   
quote:

have heard that this company will give you values -



Very interesting. Thanks, Erin!

gail

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(in reply to erinatkins)
dpf

 

Posts: 7126
Joined: 11/12/2003
From: India-napolis
Status: offline

 
RE: Value of a website - 9/10/2004 13:05:17   
you havent posted in awhile, Joe. good to see you here.

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Dan

(in reply to Mojo)
_gail

 

Posts: 2876
From: So FL
Status: offline

 
RE: Value of a website - 9/10/2004 13:05:52   
[message deleted]

Sorry, Dan. I didn't catch that your post was directed to Joe, not me, in his post above mine. :)

gail

< Message edited by _gail -- 9/11/2004 12:12:39 >


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(in reply to Mojo)
_gail

 

Posts: 2876
From: So FL
Status: offline

 
RE: Value of a website - 9/10/2004 13:20:59   
quote:

you havent posted in awhile, Joe. good to see you here.


Hi Dan,

Thank you so much for your kind words. Didn't think anyone would even note my absence...well, I haven't really been absent, I just make a lot less posts.

Truth is, I've just about gotten out of the web design business, except for my own stuff. As indicated in another reply, my digital camera site is taken off nicely and it takes quite a bit of time to keep everything up to snuff. I still participate in online forums the way I did here, but they tend now to be those dealing with digital photography. So instead of critiquing sites, we critique photos; instead of talking about css, browsers, SEO and html, we talk about such things as megapixels, exposure compensation, ISO and Image Stabilzation. :):):)

Except when I encounter web stuff technical glitches, I'm having a great time!

gail

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(in reply to dpf)
Mojo

 

Posts: 2441
From: Chicago
Status: offline

 
RE: Value of a website - 9/10/2004 14:21:22   
quote:

I don't sell anything, though. It's an educational site. I've spent a sinful amount of time creating and writing content for it. Or does that count for nothing if selling a site?!


It counts a lot - to the right people. I did not cover the education type of site. The closest above would be Adsense. Ultimately, when selling a site there needs to be a financial benefit that can be quantified at some level.

A buyer may be interested in owning your site just to place a link from every page to their eComm site - if the edu site is in the same niche. This can be a tremendous boost for the eComm site. Can you drive targeted visitors to a site from yours? How much is the Adsense income? What is your Page Rank (page rank itself should NOT be considered by a buyer unless it is expected to stay and can be PASSED to another site). How can it effect the rankings of the buyers eComm site?

If you can identify some of the above questions you can increase the value of your site beyond just the Adsense income multiplied by x months. Of course, you could always get *lucky* have find a buyer that has a passon for your sites topic and is willing to pay a premium to just be doing something they love.

Good to see you Dan. I am always around here, but lately I have been quite busy launching my own product. I may even add signature links soon .... :)

Joe

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(in reply to _gail)
_gail

 

Posts: 2876
From: So FL
Status: offline

 
RE: Value of a website - 9/10/2004 16:12:35   
quote:

Can you drive targeted visitors to a site from yours?


Not sure what you're asking about targeted drive.

quote:

How much is the Adsense income?


Don't think the Adsense terms allow me to disclose this but I can say that it's increasing quite a bit each month. August seemed to be a slow month as to traffic, and it was my second best month ever. I'm curiously anticipating the Thanksgiving-Christmas season when advertisers typically pay a higher amount per click.

quote:

What is your Page Rank


Six. Don't think that's bad but not sure how good it is overall for less than a year old site.

gail

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(in reply to Mojo)
Mojo

 

Posts: 2441
From: Chicago
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RE: Value of a website - 9/10/2004 16:31:03   
:)

My questions were rhetorical.

But, you bring up a good point. Before selling a site with Adsense - ask the Adsense team for permission to disclose your earnings. Tell them you are selling your site and want to include all sources of income. They will give you permission.

Driving targeted visitors means having the ability to send a certain kind of visitor from your site to another site. If your education site was about cameras eComm sites would be interested in having your visitors - after they have read up and understand what they want - click a link suggestiong their site as a good place to purchase a camera. These visitors would be targeted because they are interested in cameras, they learned about cameras and now they are going to a website to buy a camera.

The better targeted your visitors = a higher conversion rate.

Any page rank 4 and up is nice for backlinks. I would guess that a PR6 edu site about cameras would be of interest to many eComm sites.

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(in reply to _gail)
_gail

 

Posts: 2876
From: So FL
Status: offline

 
RE: Value of a website - 9/10/2004 17:02:36   
quote:

The better targeted your visitors = a higher conversion rate.


Is conversion rate the same as clickthrough rate? If so, what is a good percentage for the rate?

Boy, what an interesting conversation! I'm glad I asked the question. You really know your stuff, Joe.

gail

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(in reply to Mojo)
Mojo

 

Posts: 2441
From: Chicago
Status: offline

 
RE: Value of a website - 9/11/2004 10:57:03   
quote:

Is conversion rate the same as clickthrough rate?


No.

Clickthrough is when a visitor clicks a link. Clickthrough rate would be the relationship of total visitors to how many clicked the link. 10 visitors divided by 3 clicks = 30% CTR.

Conversion rate is the relationship between total visitors and how many perform an action that corresponds to the goal of the website. It is most commonly used to track the progress of an eComm site, but can be used to track anything. 10 visitors divided by 3 purchases = 30% Conversion Rate.

Joe

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_gail

 

Posts: 2876
From: So FL
Status: offline

 
RE: Value of a website - 9/11/2004 12:13:32   
quote:


quote:

Is conversion rate the same as clickthrough rate?

No.


I appreciate the explanation.

gail

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(in reply to Mojo)
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