Determining the value of a website can be confusing because
conventional methods are not always suited to value internet
businesses.
We at HouseProfit.com use a monthly average of
the last three months of
Net Income and
Unique Visitors and then multiply
by a nine and twelve month multiplier to obtain a value range.
An example: If a site had a monthly net income of $4,300,
$4,100 and $5,200 for the last three months, this would give us an average
of $4,533. And if the site had monthly unique visitors of 2,223
2,455 and 3,122 this would give us a monthly average of 2,600.
Then to value traffic we take the average
of the top fifteen pay-per-click bids on
overture.com for a relevant keyword and multiply it
by the unique visitor average. In this example we'll use .15¢
which will give us a monthly dollar
value of $390.
And finally, to get a value range we add
the two numbers together and use a nine and twelve month multiplier to come to a value range
of
$44,307 to $59,076.
This can give you a general idea of how much a website
is worth, however there is also something called the "content value"
which is all the other variables that make the site more or less valuable,
like the sites uniqueness, professional design, proprietary software and market potential.
This is why we recommend getting an
appraisal for your website. The content value
can sometimes sway the value of a business by as much as 40% either way.
So, if you're a website owner an appraisal
can add credibility to your asking price or if you're a buyer you can be
assured of the value.