Valuing a website can be a tricky process, particularly because everyone has a different opinion about what factors are important in the value of a website.
In reality, the simplest answer to the value of a website is how much someone is willing to pay for it, but that answer isn’t really helpful.
After all, you need to have some idea of what your website is worth if you are going to try and sell it. If you don’t, someone will just take advantage of you.
Knowing how websites are valued is also important for when you are developing
How to Calculate Website Value: Online Tools
Online tools are probably the easiest way to work out how much your website is worth, but they highly variable.
If you try to calculate your website value in this way, you will probably find that one site places the value of your site much higher than another one.
The question is: which estimate is accurate?
When it comes to online tools, you really want to pay attention to exactly the site calculates the worth of your website.
Many online tools use calculations that create very optimistic outcomes.
Honestly, you want to be very wary of any calculation that seems overly high, particularly if you have a site that has low traffic.
After all, anyone who is buying a website is going to try and get the best deal possible.
For example, I tested the website for Wealthy Affiliate on two different sites and these were the results I got.
Clearly these results are worlds apart, and it’s likely that neither one is a true estimate of the website’s value.
Online tools can be a good starting point for determining your website’s worth, but I would always suggest believing the lowest one.
If you simply can’t get numbers that make sense or don’t believe what you see, it may be best to try another approach for valuing your website.
Perhaps the most reliable way of working out how much your website is worth is to look at how much other similar sites have sold for.
Websites like Flippa are effective tools for this process because these are locations where people actually buy and sell websites on a regular basis.
This means that you can see actual values for websites, rather than hypothetical values.
When you take this approach, you need to be careful in selecting what websites to compared to.
This can include information like how many visitors per month, the Page Rank in Google and the amount of profit that the website makes on a monthly basis.
As an example, one of the recently sold listings on Flippa looks like this:
There is a lot of additional information about the site that was sold further down the page, such as an average monthly revenue of $4,000 and income from affiliate marketing.
Additionally, you want to be sure you are comparing to a website that is similar to yours, ideally one that is within the same niche.
So, if you had a website that promoted products for cats and dogs, you would want to look for similar websites on Flippa and other websites that offer buying and selling of websites.
Another thing to consider is how old the listing is.
For example, if you are looking at a website that was sold three years ago, the value of the niche probably isn’t the same now as it was then.
This approach basically involves taking the profit that a website receives each month and dividing the sales price by this number.
In theory, the shorter amount of time it takes for the website to make the price that it is being sold for, the faster it will sell.
Buyers do often use this information in their calculation of how much to pay for a website, but there really is no set figure.
Often a value of around 10-15 months’ income is a good estimate of how much a website will sell for, but this can vary wildly.
For example, a buyer might pay considerably more for a website that is not earning a lot of money but has potential sources of revenue that the seller has not taken into account.
Likewise, buyers might pay more for a site that has significant growth potential and less for a site that does not look like it is going to see much growth in the future.
None of the methods listed are 100% reliable for determining your website worth.
At the end of the day, it doesn’t matter if you calculate the value of your website at $3,000, what matters is whether someone is going to pay you that much for the site.
People who buy websites, and really, buyers in general, tend to be unpredictable in their decisions, often choosing to buy or not to buy on the basis of an emotional rather than a practical reason.
Sometimes this means people will pay much more than a website is worth.
But other times, people will pay significantly less than what the website seems to be worth.
Different buyers will consider different things to be important in a website.
For example, there are some people who distrust almost all forms of backlinks and will steer clear of any site that appears to have too many backlinks.
Other buyers will look for the site that has the largest number of backlinks present.
This can make predicting the behavior of buyers very difficult.
If you are trying to sell a website, be aware that it can sometimes be a challenging process and it you might not get what you are looking for.
Should You Sell Your Site?
Many people choose to work on websites for a certain amount of time then sell them off for profit.
This can be a particularly useful venture for people who find that they have too many sites to work on at once, or suddenly find that their amount of free time has suddenly decreased dramatically.
Other people buy websites, spruce them up and turn around and sell them for a profit.
Selling a site can certainly be a profitable venture, but it’s important to take care and do research throughout the process.
Some people find that as they are working on their website, someone gives them an offer that seems like a lot of money all at once.
This can happen as a site starts to get popular and begins to earn regular income and it can be very tempting for people who have just started making money online.
This is where working out the value of your site can be critical, because often these offers do not come close to what the site is worth.
Another thing to consider is that people normally want to buy your site because of the potential for profit.
If your site is growing rapidly, then you may find that you would make more money holding onto the site rather than selling it.
Ultimately it is a personal decision, but I would recommend being very cautious when it comes to selling websites, particularly when you only have one.
Building for Value
The information about how sites are valued can be very important for people who are starting to build websites, because it shows what qualities are important to people who buy websites.
This is relevant information even if you don’t ever plan on selling your site.
Because, investors are interested in these specific aspects of a site for a reason and this is because these are the elements that make a website profitable.
If you can build a site around these components, then you are well on your way to making a quality site that can make money regardless of whether you are trying to sell it or not.
Some of the most significant components are:
Page rank is actually a term that Google uses to rank the results of their search engines. This number is the result of an algorithm and considers the number of links to and from a webpage.
However, it is worth noting that Google has made it clear on multiple occasions that the page rank of a site doesn’t actually mean that much (1).
Page rank is still a factor in Google’s algorithm for ranking search results, and it is still a factor that website purchases pay attention to, which makes it important for anyone trying to sell their site.
Based on Google’s current attitude towards page rank and the changes that they have been making to their algorithms, I wouldn’t be surprised if Google stops using page rank altogether at some point in the near future.
In fact, currently Google is having problems with its page rank meter that people use to measure the page rank of their sites.
The data that the meter currently uses is more than a year old, which suggests that the data isn’t really that relevant right now (2).
It seems that Google isn’t in much of a hurry to fix the problem either.
Traffic is one of the most significant indications of success on a website, because the more traffic you have, the greater the potential for profit.
This isn’t surprising, because traffic refers to the people visiting the website, and the more people you have visiting, the more people there are that can buy something.
This is why people who buy websites will sometimes pay more for a site that has high traffic even if the monthly income of the site is relatively low.
After all, getting the traffic is one of the hardest and most time-consuming parts of website development. Turning this traffic into profit tends to be significantly easier.
Needless to say, profit has a significant influence on how much you can make selling a website.
Most people who are buying a website are looking to make money off the transaction, so they are not going to be interested in a website that runs at a loss.
Generally speaking, the higher the monthly income of a site, the more it will sell for.
However, as I have mentioned before, profit is not the only indication of the quality of a site, and other factors will influence how much a site goes for.
Social Media Engagement
Social media is a bit of a ‘new kid’ and a lot of the older websites haven’t really started to get involved in social media.
This is a pity, because social media has really taken off, and has proven to be an effective way of gaining traffic and keeping audiences engaged in a website.
Some sites have begun to measure social media engagement as part of their metric for how valuable a website is, and buyers have been beginning to show an interest in this also.
This suggests that social media engagement may be important for websites, particularly as the level of interest (and obsession) with social media continues to grow.
Backlinks, particularly quality backlinks are still generally regarded as an indication of website quality, although many sites that rank websites only consider the quantity, not the quality of the backlink.
Regardless of your opinion of backlinks, it is clear that a large number of buyers consider backlinks to be a strong indication of website success.
For the most part, the approaches that you would normally take to make profit from a website are also the approaches that increase the value of a website when you are trying to sell it.
However, actually finding out how much your site is worth can be exceptionally difficult and there are no approaches that can give you an accurate and reliable figure.
In reality, the best approach is simply to estimate as best as you can and then see what the market does with this estimate.
There are also exceptions to these general rules.
In fact, people sometimes find that they are offered a considerable amount of money for a site that doesn't seem to be worth all that much.
This can happen for a range of reasons.
For example, it might happen because a buyer sees potential in the site that even its owner doesn't seem .
Additionally, people will often buy websites because the site fits in with their own website so well.
This might be because the domains are similar or some other reason.
Either way, this is a good indication that you can't rely too heavily on estimates of website worth.
At the end of the day, it all comes down to what your website is worth to the people who are interested in it.
Even so, selling websites can be a good way to make profit for many people, particularly once you get the hang of the market and its fluctuations.
Regardless of whether you want to sell websites or make money from them, it's important to make your site as good as possible. There are many ways to do this and a range of things that you need to consider.
However, learning how to effectively build a website is definitely the best place to start.
One of the best options for learning is a site called Wealthy Affiliate.
Wealthy Affiliate is a powerful online training site that teaches people how to build websites and make money from them. The lessons at Wealthy Affiliate are targeted at beginners, so they are an especially good option for people who have never built a website before.