04.04.07

What is Your Site Worth?

Posted in General at 9:44 am by admin

As the TV show “Flip This House” is becoming a huge success, the thought of buying an established website or blog, improving upon it, driving traffic and forging advertising deals, and then selling it for a profit is becoming more popular. Websites and forums geared towards connecting buyers & sellers together such as Sedo are popping up, and blogs for sale can even be found on eBay.

So what determines a site’s worth? Well like any investment, you hope to recover your initial purchase price within a given amount of time, and then hopefully continue to make an income stream afterwards. In the real estate market, buying a property for an income stream such as a hotel, a gain of 10% annually is considered quite good — that is, you will recover your initial investment through income from the hotel after 10 years; A $1,000,000 hotel should hopefully give $100,000 annually in profit. As income from blogs is still considered to be more unstable than other investments, a full recovery of an initial investment after three years is a fair requirement.

Some things to consider when evaluating the value of a website, other than the raw traffic statistics:

1) The age of the site - How long has it been around? What are the traffic trends and how does the site respond to traffic spikes? For example after being Dugg, do the new visitors come back often or was it a one-time visit?

2) What is the Google PageRank?

3) Email List Subscribers - Does the site come with a list of email subscribers?

4) Media Coverage - Has the site been featured in any recent news stories?

5) How many backlinks does the site have? This is the number of other sites linking-in to this one.

6) Forum Included - Does the site host a forum, and if so how active is it?

7) Where does the site appear in search engine rankings? Does the site appear in the top-five results?

8) Are there multiple blog authors? If so, what will happen to their content once you take over? Are you willing to continue whatever arrangement they had with the previous owner?

9) How is the site being monetized? What other options could you explore?

10) What is the main source of traffic? How could you drive more traffic?

I have developed a tool to evaluate the value of a site which may be used to assist with pricing a site for sale. The results of this tool certainly aren’t completely accurate and are based on publicly available statistics which can be found through some tricky search engine queries; however I believe that it gives a close rough estimate.

CyberWyre is currently valued at $26,330 — Any takers? :-)

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29 Comments »

Comment by Nick
2007-04-04 10:46:44

Hmm. Mine’s worth $400,797. I’ll buy yours if you buy mine!

 
Comment by Origin
2007-04-04 11:55:46

I won’t even repear what mine is worth. Too embarrassing. Nice little tool. Thanks.

 
Comment by Torsten
2007-04-04 12:19:55

$196,080…

 
Comment by mgroves
2007-04-04 12:43:32

This is clearly beyond the scope of your article, but I think it needs to be said:

A hotel that costs $1,000,000 and only returns $100,000 a year for 10 years is a horrible investment. I could get a 5% return from a no-risk CD, and a hotel is certainly more risky than a CD.

Oh, and mgroves.com is valued at $20,192. I remember that “ReviewMe” also put a “per article” value of your site as well, and mine was $60 a post.

 
Comment by E
2007-04-04 15:08:01

i’m not sure about the validity of your calculator since you dont describe how you estimate the 3 output values of earning potential.

my website http://www.epidemiologic.org actually earns very little via Adsense and i doubt people are that interested on advertising on an academic site. However, via your calculator, i get “$542,526″ as the estimate worth, which makes me suspect. how do you estimate that “Your site could earn $15,055.5/Month through independant advertising arrangements specific to your site’s niche”?

can you please describe the methods of your blackbox calculator?

 
Comment by NN
2007-04-04 16:18:17

cool tool. I highly doubt my site is worth $4027 though. I average 20 uniques a day with a PR of 2. (I think it’ll be 4 by the next update.)

The monthly earning potential sounds about right though :)

I doubt I’d ever be willing to sell a blog of mine. Well.. I guess if I was bored with it and profits were marginal..

 
Comment by Tony
2007-04-04 21:45:26

text link advertisements rate seems flawed, it shows 1/3 the actual market value over at TLA.

 
Comment by Paul B
2007-04-05 10:11:09

Obviously any tool of this type is going to be very approximate and be weighted in the authors own opinions, I’d treat it for what it is, a bit of fun and great link bait ;-) If people want to hyper-analyse what’s going on then I’d suggest they have a crack at a simlar tool themselves.

One of my sites which has an Adsense income alone of $1200 a month was valued at $11,000 whilst one of my not so popular hobby websites got the following:-
Your site is valued at: $42,358,937

If only…. I’ll just carry on dreaming, thanks for the tool.

 
Comment by Aniela
2007-04-05 12:43:15

These tools are just made for fun and not made to be accurate. It’d be every blogger’s dream if they could get that much for their sites :)

 
Comment by Pozycjonowanie
2007-04-06 05:39:41

Thanks for another great article. Keep up the good work. Greetings

 
Comment by Boysterload
2007-04-08 08:18:46

I couldn’t believe it…. the best podcast on the net is the Pissed Off World of Unle Hal it his site is worth $68,208,205!!!

Jesus, it would be nice if this tool were more accurate. Look at the value of myspace.com…. over $400,000,000

http://www.powunclehal.blogspot.com/

 
Comment by Undertypo
2007-04-08 22:35:41

Thanks for this tool.
A question here.
About the USD/link/month, isn’t it better to use text-links-ads tool?

 
Comment by uncle wilco
2007-04-18 06:17:14

Well the BBC is worth $161,334,777! and my little site $17,875
nice little toy.

 
Comment by trafficclub
2007-04-21 14:46:01

cool tool !

lifecam.net
valued at: $24,796

:)It’s my domain name for sale .

Your site is valued at: $24,796

Monthly Earning Potential
Your site cound sell text link advertisements at a rate of $0/Link/Month
Your site could earn $1/Month through affiliate marketing
Your site could earn $685/Month through independant advertising arrangements specific to your site’s niche.

 
Comment by stepi
2007-04-25 07:42:12

www.true-passion.com

Your site is valued at: $24,250,593 incredibbile

:)

 
Comment by green
2007-04-28 16:33:10

My website worths not so much:) I’m poor.

 
Comment by Ren
2007-04-30 05:37:26

Hehe, looks like your site has gone down to $19,xxx. :D

Anyway, would really be nice if you tell us some ideas of what you are basing the calculation on. :)

 
Comment by green
2007-05-01 12:56:03

Yep, we need your ideas:)

 
Comment by SEO blog
2007-05-02 16:05:43

I love tools like this. I’ve gotta say though, yours is making me feel like a bit of a failure. It says my site should be able to generate 5 grand a month. Needless to say, I’m not quite there yet…

 
Comment by ZUG
2007-05-03 08:30:48

My comedy site, ZUG, is valued at $10,094,787.

I’m rich! (In theory.)

 
Comment by G
2007-05-04 14:46:54

The calculator is fairly accurate for my site. It estimates $152/Month through independent advertising arrangements specific to your site’s niche. Last month, I made $130 with adsense.

How accurate is this tool with other sites?

 
Comment by admin
2007-05-10 09:53:16

FYI, the calculator tool has been updated to what I feel will give more accurate results. Unfortunately, CyberWyre is now only worth $20,400. But I’m sure that this value will grow again with time :-)

 
2007-05-15 18:57:00

[…] What is Your Site Worth? - Website Valuation Tool 0 I just wanted to share with you all an article that I recently posted on my site that I thought might be helpful/interesting/fun :-) I recently became interested in finding out how much my site could be worth if I decided to sell it one day, and have come up with a) some metrics for measuring the value of a site (which I’ve pasted below), and b) a tool to automatically value any given URL. Here is the link to my Article: CyberWyre - What is Your Site Worth? and here is the link to my tool: Website Value Calculator Please let me know how accurate it’s predictions are with your sites, I’d appreciate some feedback. Here are some key points from my article for evaluating the resale value of a website: 1) The age of the site - How long has it been around? What are the traffic trends and how does the site respond to traffic spikes? For example after being Dugg, do the new visitors come back often or was it a one-time visit? 2) What is the Google PageRank? 3) Email List Subscribers - Does the site come with a list of email subscribers? 4) Media Coverage - Has the site been featured in any recent news stories? 5) How many backlinks does the site have? This is the number of other sites linking-in to this one. 6) Forum Included - Does the site host a forum, and if so how active is it? 7) Where does the site appear in search engine rankings? Does the site appear in the top-five results? Are there multiple blog authors? If so, what will happen to their content once you take over? Are you willing to continue whatever arrangement they had with the previous owner? 9) How is the site being monetized? What other options could you explore? 10) What is the main source of traffic? How could you drive more traffic? __________________ Making a Living 100% Online: http://www.cwire.org […]

 
Comment by Frank Bauer
2007-06-03 23:31:19

Sweet… :)

#1. Your site is valued at: $1,656,395 - GoTo-Pro.com
#2. Your site is valued at: $11,911 - Add2it.com
#3. Your site is valued at: $3,397 - FrankBauer.name
#4. Your site is valued at: $2,202 - More4you.ws
#5. Your site is valued at: $1,033 - Add2it.com.au
#6. Your site is valued at: $404 - Complete-Pro.com

Who want’s to buy my #1 domain? :D Special one-time offer of just US $1,500,000! ;)

Best regards,

Frank Bauer

PS: Vote for me at http://FrankBauer.name/vote-for-me ! Thanks.

 
Comment by Bobby
2007-10-10 07:25:02

Hehe, i tried some test too and one of my blogs, without any links is worth 15,000 , wow i could make some more of those sites :D anyone wants to buy a blog :P ?

 
Comment by Mok Ginn Wei
2007-10-19 15:14:10

Mine is valued at $367. That’s quite good considering it’s only about 3 weeks old. By the way, how many ‘website worth calculator’ are available?

 
Comment by Bodybuilding Shop
2007-10-29 02:29:56

Thanks for very interesting article. btw. I really enjoyed reading all of your posts. It’s interesting to read ideas, and observations from someone else’s point of view… makes you think more.

 
Comment by NSC Networks
2007-12-22 03:44:30

It says my site has a PR of 0.1 when I know it is 1. WHats with it?

 
2008-02-19 10:00:54

Thanks for this informations

 
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