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Valuing a website

  • 26-07-2011 9:44am
    #1
    TheQueen
    Registered Users, Registered Users 2 Posts: 88 ✭✭


    Can anybody give me some tips on how to gauge the price of a website please?
    Sorry to clarify, I am looking for advice on what is a fair price to offer somebody for an existing site.


Comments

  • #2
    Liam Byrne
    Closed Accounts Posts: 18,163 ✭✭✭✭Liam Byrne


    TheQueen wrote: »
    Can anybody give me some tips on how to gauge the price of a website please?
    Sorry to clarify, I am looking for advice on what is a fair price to offer somebody for an existing site.

    Some more clarification required.

    Is the site a business in itself ? Are you therefore buying the business if you buy the site ?

    Or is it just a similar site that you want to buy ? If so, make sure you're entitled to, since the contract for developing the site may not allow for this.


  • #3
    Trojan
    Registered Users, Registered Users 2 Posts: 16,414 ✭✭✭✭Trojan


    It depends on so many different factors - industry/niche, revenues, if it's for sale or you're approaching cold, age of site, if it's an exact match domain, what the TLD is, Alexa rank, unique vistors, time-on-site, what your plans for development are, etc, etc. Put those down on paper and give them some thought.

    Ok, that said, here's some resources for you. There's a bunch of online tools that calculate value based on some arbitrary stats - don't trust these at all, they're usually a mile off.

    Flippa have just published a guide to buying sites - it's free but you need to register - worth a read.

    SitePoint have a good article here, it's from 2008, not sure if they've kept it up to date but worth a quick read too.

    HTH

    🎙️ The Recognized Authority Podcast



  • #4
    Figment
    Registered Users, Registered Users 2 Posts: 1,747 ✭✭✭Figment


    I answered this over on linkedin so i hope you do not mind me copying it here.

    I have sold a few sites and the honest answer is it depends on how much someone is willing to pay.
    I have had potential buyers put valuations on sites I was selling using calculations like 3xyearly revenue and then had someone bid 10 times more then that purely because they wanted it.
    I have had websites that generated no revenue but were great for building SEO and collecting email subscribers sell for €10k because the buyer thought they could monetise it.
    I have never been able to value and sell a website based on the number of hours put into it.
    The above reply is based on the assumption you are valuing it to sell it.

    But perhaps you want to value the website in terms of Return on Investment that you put into it.
    In that case look at how much you spent building it. How much time you spent on it and multiply by your hourly rate.
    If you are on a salary divide your annual income by 2,080 to get your hourly cost.

    Then compare it against the number of leads the website generates and how much income that brings in.
    To save you the maths I have a handy calculator here you can use. http://www.toddle.com/marketing_roi_calculator/


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