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  1. #1
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    how to price a website based on traffic?

    Hi all,

    I would like to know what variables and formulas to use when pricing out a website based on traffic as opposed to revenue? i know the usual asking price for rev is X10-12 mths. How can I price out a website based on traffic? Does it also depend on the niche?

    For example, what would be the "approximate" value of the below monthly stats coming from 100% organic search and no advertising:

    Unique visitors: 6687
    Number of visits: 11998
    Pages: 24985
    Hits: 128964

    Thanks

  2. #2
    Follow Me On Twitter: @djg gold trophysilver trophybronze trophy Dan Grossman's Avatar
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    Traffic has no intrinsic value. Its only value is in what revenue it can produce. 6687 hits to a comic are fairly worthless, while 6687 searches for "buy diamond rings" arriving at your site would be worth thousands.

    Either monetize the traffic yourself or your buyers will usually assume it's not worth very much.

  3. #3
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    as i know , if you want buy site from site which have god traffic and revenue. You must pay revenue result multiply with 30 times.
    For example : revenue about $1000/ month, it mean you must pay about $30,000

  4. #4
    SitePoint Enthusiast dekree2's Avatar
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    Quote Originally Posted by pomqac View Post
    as i know , if you want buy site from site which have god traffic and revenue. You must pay revenue result multiply with 30 times.
    For example : revenue about $1000/ month, it mean you must pay about $30,000
    Thank you pomqac -- for highlighting this tip. Will take note on this for future reference.
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  5. #5
    SitePoint Zealot basaka's Avatar
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    Traffic does somewhat have some sentimental value or else it would only be page rank to consider a site's worth. Having traffic from the start to monetize is worth more than page rankings any time. I would say your traffic stats are pretty good if they are returning visitors and it is coming in daily.
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  6. #6
    SitePoint Addict jitenjain's Avatar
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    Both Traffic and Revenue figures are required to estimate the valuation of your site..you need to check the referal stats as well..!
    Build your outsourcing strategy now!!
    Email : jitenjain @ gmail.com
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  7. #7
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    30 months of revenue is too little. Would you sell your site for less than 3 years of revenue? I wouldn't think about selling any business for less than 10 years of revenue.

  8. #8
    Follow Me On Twitter: @djg gold trophysilver trophybronze trophy Dan Grossman's Avatar
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    Quote Originally Posted by helioaug View Post
    30 months of revenue is too little. Would you sell your site for less than 3 years of revenue? I wouldn't think about selling any business for less than 10 years of revenue.
    Websites aren't the same as brick-and-mortar stores. They are subject to changing online trends that tend to move much faster than a decade. Many well funded startup web businesses fail in less than that time. You'll be hard pressed to find many websites selling for more than 2-3 years revenue.

  9. #9
    SitePoint Guru
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    Maybe website owners don't know the real value of well established sites. Internet has much more revenue potential than today, and if someone has a site with a lot of traffic it would value a lot. Even more if it has target audience.

  10. #10
    SitePoint Enthusiast simmo_13's Avatar
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    Quote Originally Posted by helioaug View Post
    Maybe website owners don't know the real value of well established sites. Internet has much more revenue potential than today, and if someone has a site with a lot of traffic it would value a lot. Even more if it has target audience.
    I guess traffic has to be evaluated in the context of market share, rather than absolute numbers. Like the diamonds/comic example above, market share and potential revenue based on the market would be a likely indicator.

  11. #11
    SitePoint Co-founder Matt Mickiewicz's Avatar
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    Research the value of keywords associated with your site through Google AdWords.
    Matt Mickiewicz - Co-Founder
    SitePoint.com - Empowering Web Developers Since 1997
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  12. #12
    SitePoint Addict ChiefLee's Avatar
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    I found an interesting tool here: http://www.semrush.com/

    They provide a sense of value for the phrases you index for compared to what people pay for these phrases in Adwords.
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