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How would you calculate the price of a site?
Old 10-10-2006, 04:03 AM How would you calculate the price of a site?
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Well, I have never bought nor sold any website so I just feel quite curious about that.
Of course I know you base on the number of unique visitors, the popularity and such, but how do you come up to an approximate number? Is there an implied price chart for that?

Say a site I know which ranked 25000 on Alexa (keeping going up during the past 6 months), 1500+ unique visitors/day, 50% users are from the US, and the site is a forum community, how much should I pay for it?
It's not likely that Im gonna buy it, but Im just very curious how you experts price a site.

Last edited by yellow1912; 10-10-2006 at 04:10 AM..
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Old 10-10-2006, 05:11 AM Re: How would you calculate the price of a site?
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You can decide on a value based on its revenue or potential revenue with current number of visits etc. But it depends on other factors too.

At the end of the day its worth what someone is willing to pay. I have sold one site for $350 and another virtually identical for $4000
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Old 10-10-2006, 02:54 PM Re: How would you calculate the price of a site?
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i think most people go on 3x the monthly revenue for a price of a website.

but for me, revenue is not important. id look at visitor stats, and how much of the traffic comes from search engines.
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Old 10-10-2006, 04:15 PM Re: How would you calculate the price of a site?
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Ultimately a site is worth whatever someone is willing to pay for it. Don't look at the Alexa numbers at all. They're essentially meaningless for all but the most popular of sites.

If I was buying the site I would look to what it had now in terms of traffic and revenue. How much does the site currently earn. Where does the traffic come from and how targeted is it to the site. I would do a thorough analysis of the traffic.

I'd also want to know how well the site was converting. Does the traffic come to a page and then leave right away? Does it dig deeper into the site? Does it clcik on an ad or sign up for membership?

I'd also think about what I wanted to do with the site and how much potential I thought it had. Maybe the forum gets a lot of traffic and is earning revenue from memberships, but has yet to implement any advertising. I would consider what I thought could be earned by adding advertising to the site. Or mayb there's a way to add products to the site in some way as another revenue stream.

I would also want to know how much work would be involved in getting the site where I wanted it to go. The more work involved the less I might be willing to pay since I'd factor in either how much my time would cost to do the work or how much it would cost to hire someone to do it.

I might also consider how well the site might fit with any other sites I own. Maybe the site in question won't necessarily be a great revenue generator directly, but can be used to divert more traffic to another site. Say it's a forum on auto repair and I owned an auto parts store. Just being able to advertise my other site prominently on the forum or the authroity I could gain for that other site by the association with the forum might factor into how much I'd pay.
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