General Discussions

**networkmom** · 08-03-2006, 12:34 PM

I wonder if anyone knows how do calculate the value of a website if thinking of selling?

Denise

**Slevin** · 08-03-2006, 12:35 PM

look at the sitepoint marketplace, try to find a site with similar earnings traffic PR aetc as yours and see how well that is selling for

**networkmom** · 08-03-2006, 12:51 PM

I did not see anything there. Are there other places to go to find out?

Denise

**imported_Edder** · 08-03-2006, 11:15 PM

Development costs.
Domain name value.
Traffic.
Revenue. (Usually 12-24 months)
Potential.

**networkmom** · 08-04-2006, 05:47 AM

I went to a free service to have it appraised and they did not ask the revenue or potential so not sure this was a good appraisal, I will keep looking.

Thank you
Denise

**imported_Bleys** · 08-05-2006, 11:03 PM

Development costs and potential are a hard sell to figure into your sales price. Buyers generally don't care how much you paid to have your site made and they really don't care about potential. (Unless you can quantify that by showing a pattern of growth that can be projected into the future...)

I'd recommend reading the Selling A Website FAQ I wrote for SitePoint.

http://www.sitepoint.com/marketplace...websitefaq.pdf

It has a section about valueing a website that goes over some of the things that you should look at when determining the worth.

Of course, the short answer is always that your website is worth however much someone is willing to pay for it.

**matrixlover** · 08-06-2006, 09:18 PM

An easy and simple way of guessing how much to sell for is this. You take your month's revenue, multiply that by 10. That should be around your BIN. But if you have large amount of traffc, PR, and good backlinks, you can increase the BIN.

**imported_Bleys** · 08-07-2006, 05:55 AM

I never liked the 10x/12x whatever times revenue model. It totally ignores a lot of other things you should be looking at that potentially have value, such as: traffic, PR, domain, physical assets (like product inventory, promotional items, etc.), brand, software licenses, etc.

Besides, let's say you have a a forum with 10,000 active members and 400,000 posts. But you've never once put an ad on the board or tried to monetize it in any way. The 10x revenue model puts your BIN price at $0. That's pretty absurd.

It might work for some sites, but I am of the opinion that it is a poor valuation method for most sites.