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  1. #1
    SitePoint Evangelist micmol's Avatar
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    Can someone suggest a reliable formula for determining the value of a website

    Dear All

    I'm not sure this is the correct forum for this post. However I'm sure it will be moved if I'm wrong.

    I just would be very interested if anyone has a formula to give some sort of estimate of a websites selling value.

    Kind Regards

    Micmol

  2. #2
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    Valuing a Website

    I can't remember who wrote it, but there's an article on the site somewhere calling something like ..'I bought a website twice' and I think it's fairly new.

    It described the sort of things to look out for when buying a site that give it value.

    Hope it's of help!

  3. #3
    Intoxicated with the madness petertdavis's Avatar
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    I don't think there's a formula you could use, there's too many variables. Income is a good rule to use, but even that can mislead you. For example, I'd pay more for a site with a good small business target audience as opposed to a site with a gamez target audience even if they both had the same income, same traffic, and both had great designs. I haven't figured out yet how to calculate the value of target audience as part of a formula. I guess the easy answer would be to value the site at a multiple of net profit, then adjust it up or down depending on variables such as the target audience, site design and content, and traffic.
    Peter T Davis

    I buy forums - PM me if you're selling.

  4. #4
    SitePoint Evangelist micmol's Avatar
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    Tough

    Dear Gentlemen

    Yes. Its tricky to try and come up with a reliable formula. I might put this project away for another day and develop one myself.

    Kind Regards

    Micmol

  5. #5
    Sports Publisher mjames's Avatar
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    Jeremy's article might be helpful: http://www.ecommercebase.com/article/866

  6. #6
    Intoxicated with the madness petertdavis's Avatar
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    Yes, I think Jeremy is a good source for this. Were I trying to develop such a forumula I'd definately discuss it with him while I was doing it.
    Peter T Davis

    I buy forums - PM me if you're selling.

  7. #7
    Bananas contain Zinc fonzerelli_79's Avatar
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    i read somwehere its worth around 18 - 24 months income but a l;ot depends on the type of site it is

  8. #8
    SitePoint Evangelist micmol's Avatar
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    Thanks

    Yes but in the article the site he quotes seems to get bought and sold on a daily basis. There is something very fishy going on there. Kinda then rubs off the shine on a creditability basis.

    Regards

    Micmol


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