How much is my website worth?
For anyone who is looking into buying or selling a website on Flippa (other website marketplaces are available) it would be advisable to have an understanding on how a website valuation is reached. If not, then you could find yourself in a position where you end up selling for less or buying for more than the website is actually worth.
So before you start adding your site to Flippa’s listings or bidding on an auction you should know how much that site is actually worth, rather than just what you think it is worth. There are many different aspects that need to be considered when working out how much a website is worth.
Obviously the main two are traffic and monetization (how many people visit the site and how much it makes). However there are many other factors that can affect the final value of a site, which can be overlooked as selling points. Some of these include:
- Social media – already having a social media presence is going to be a massive plus in the coming future.
- Automation – having processes in place that mean that the site can run with little to no input is a huge plus. This will mean that a new buyer has the choice of allowing the site to continue passively as it has been or invest some more time and money into creating new traffic and /or revenue sources.
- Multiple sources – by this I mean for traffic and revenue. By having various traffic and revenue sources enables the site to continue operating should one of the sources disappear.
- Relationships – any long term stable relationships that a site has with its email list, social media followers, affiliate networks, suppliers, etc. are going to be beneficial for a new owner.
- Potential – While potential is a difficult area to valuate, it is still worth considering. A new buyer should always be looking for ways in which to expand on the site and if the opportunities are there and can be identified it’s worth something.
If you really want to gauge a websites valuation the best tip that I could give would be to look on Flippa at their recently sold section. If you can find a site that is comparable to the site which you are thinking of buying or selling then you can get an estimation of the price range.