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  1. #1
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    How to determine value of my site

    About 2 years ago I built a small blog and website save364.com because I have quite a bit of experience in the insurance field.

    I have written insurance articles in the related website blog to drive traffic to affiliate program on the site. I get about 750 visitors a month and the affiliate programs generate about $1,250 a month in revenue.

    Any ideas on the value of the site?
    Last edited by save364; May 13, 2009 at 08:52. Reason: add signature

  2. #2
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    Sites normally go for a multiple of the net income. The net income is the revenue less all costs. You need to even deduct a value for the time and effort you put into it.

    Buyers would need to see a clear route to traffic. In a scenario like this it's easy for buyers to suspect that traffic will evaporate once you leave.

    The price you get would really depend on how what your net figures are, how well you convince buyers of the validity of the figures and how they perceive continued traffic flow.

  3. #3
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    Extremely bad advice from FruitMedly. A novice appraisal would use a revenue multiplier maybe but all sites are different. Sure, anyone would buy any website based on it's revenue. Jewelers will also buy any piece of gold jewelry you have at it's scrap metal value. It may be appropriate to use a revenue multiplier if your business is something like a web store or a marketing scheme that really focuses all of it's value on how much money / profit it can push out per month. I can how ever assure you in all the deals I've done over the last 10 years, from a 10,000 dollar sites to 5 million dollar sites, using a simple revenue multiplier is a very brutal and primal approach to assessing the value of a website. Often websites can add value based on their potential, assets, SEO ability and a lot of other things.

    If you want to sell your website to a pawnshop, taking FruitMedley's advice may be a good idea. Otherwise I'd suggest consulting someone that knows what they're talking about.

  4. #4
    SitePoint Evangelist
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    LOL, pixeldustmarket, I reckon FruitMedley knows one or two things about valuing websites. Apart from writing the Internet's best guide to valuing websites - please tell me if you find anything better - he's been advising members here with a lot of very helpful posts and I personally know of at least $500K he has spent in SP buying sites. Most of the top buyers here would confirm that he knows a thing or two about buying sites.

    Often websites can add value based on their potential, assets, SEO ability and a lot of other things.
    There is no value in any asset that cannot contribute in some way to the profit. Future profits are the only reason people buy websites. Sellers with dead beat sites often try to argue "potential" or how much they invested... but that's all BS. Show me one site that sold here ever where future profit wasn't the driving force in the top bid and I'll show you a sale that never got completed.

    I can how ever assure you in all the deals I've done over the last 10 years, from a 10,000 dollar sites to 5 million dollar sites
    5 million dollars?! Yeah, sure, pull the other one. Based on your comments here and elsewhere I call hot air.

  5. #5
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    Quote Originally Posted by 3Six View Post
    LOL, pixeldustmarket, I reckon FruitMedley knows one or two things about valuing websites. Apart from writing the Internet's best guide to valuing websites - please tell me if you find anything better - he's been advising members here with a lot of very helpful posts and I personally know of at least $500K he has spent in SP buying sites. Most of the top buyers here would confirm that he knows a thing or two about buying sites.


    There is no value in any asset that cannot contribute in some way to the profit. Future profits are the only reason people buy websites. Sellers with dead beat sites often try to argue "potential" or how much they invested... but that's all BS. Show me one site that sold here ever where future profit wasn't the driving force in the top bid and I'll show you a sale that never got completed.


    5 million dollars?! Yeah, sure, pull the other one. Based on your comments here and elsewhere I call hot air.
    Considering the site I am 'currently' selling has assets worth more than all of the sites put together that Fruity has bought / sold in total, ya, I'd say you're the source of the 'hot air' my friend. Keep on steaming.

    It's bad advice and really only takes one approach to valuation. Professionals are not as narrow minded. Who wouldn't buy anything based on how much money it makes. Does that mean that other things are worthless? Or does that even mean that the money it makes is at it's full potential?

    That's your quiz of the day.

  6. #6
    SitePoint Evangelist
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    You don't read very well, do you. I said the $500K was what I was aware of.

    Here's another instance of you not reading very well:
    Who wouldn't buy anything based on how much money it makes. Does that mean that other things are worthless? Or does that even mean that the money it makes is at it's full potential?
    It's not about how much it makes, it's about how much the buyer expects it to make. Past income is only useful when it serves as a guide to future income. Otherwise it's worthless. Got it? FUTURE income.

    But we aren't here to discuss exactly what a particular member has bought or sold, we're talking valuation which brings me to
    Considering the site I am 'currently' selling has assets worth more than all of the sites put together that Fruity has bought / sold in total,
    There are lot of jokers here who think their sites are worth millions. It ain't. You've already seen that nobody was stupid enough to pay $3.5 million for your site when you listed it before so you've reduced the price to $750K now. You'll find that this price is a joke as well. Tell us that your site is worth $750K when you sell it for $750K. Till then it's hot air.

  7. #7
    Floridiot joebert's Avatar
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    I don't want to side with anyone, but Google bought youTube based on potential not proven profit, someone will probably buy Twitter based on potential, and plenty of other high profile sites (geocities ?) have historiclly been purchased based on assets or audience.

    Any ideas on the value of the site?
    It's worth whatever the purchaser is willing to pay for it.

  8. #8
    SitePoint Addict Green Moon's Avatar
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    pixeldustmarket, you seem to simply be picking a fight for no reason. While what you say is true, what FruitMedley said was also true "Sites normally go for a multiple of the net income." He never said that is true of every site. There are sites with no revenues at all that sell for a price above zero. Maybe the domain alone is worth something, maybe there is a ton of traffic that hasn't been monetized, maybe there is excellent content that the buyer would otherwise have to create. Still, most sites (like most businesses in general) do sell based in large part upon their net income.


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