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Finding out what a website is worth

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Finding out what a website is worth

Postby networkmom » Fri Aug 04, 2006 6:24 am

I wonder how to find out what a website is worth if thinking of possibly selling it? I have been to some appraisal sites but I have not found them to be useful.

Thanks
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Postby annalaurabrown » Fri Aug 04, 2006 1:10 pm

I would try auctioning off the site or asking people with similar sites what they think they would pay for it.
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Postby Nerz » Sun Aug 06, 2006 10:02 pm

To be honest its very difficult to get an accurate appraisal. Its very much like domains in that respect. Whatever someone is willing to pay for it is the short answer :) but thats not much help...

Heres a short summary of what you need to consider.

http://tidget.com/help.php?action=showitem&id=1

and heres a really cool tool by the same guy that might help. Ya its a script, but from all reports its not too bad...The script is only in beta though.

http://tidget.com/index.php?custom=yes&TID=custom-tools
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Postby Lynn Terry » Wed Aug 09, 2006 7:33 pm

There was actually a calculation on this that I saw somewhere, but I cant recall the exact numbers now. It was something to the tune of taking the monthly income from that site and multiplying it by something... 10 maybe? But that doesnt seem right...

Anyone know what I'm referring to?
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Postby ryquest » Wed Aug 09, 2006 8:10 pm

Lynn Terry wrote: It was something to the tune of taking the monthly income from that site and multiplying it by something... 10 maybe? But that doesnt seem right...

Anyone know what I'm referring to?


Most places I've seen recommend between 8-12 months income (avg 10), most buyers like to return their investment on a website within a year or sooner. Thus, if you're selling auction style I would set a buy it now type option of 18-24 mths income and a starting bid of 6 months. At least, this is what I've seen work well for others.

When dealing in one on one negotiations I've always started my price at a minimum of 24 mths income or more depending on the buyer, niche and site itself. Might as well shoot for the moon (you never know), and then negotiate down as you see fit. But, in order to do this, you already have to have an interested party to negotiate with.

If you're serious about selling your site, SitePoint and DNForums are a couple of the most popular and best places I've seen, although I've never sold on either. Avoid eBay if your site is not a turnkey site as I've seen numbers of sites sell for less than 25% of their worth. In fact, last week I saw a network of sites sell for a paultry one month worth of income (the network did over 80K/year in profit).

Hope this helps and isn't too jarbled (i'm tired, long day).

Carpe diem!!

Matt
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Postby Alan Petersen » Mon Nov 13, 2006 5:16 pm

Lynn Terry wrote:There was actually a calculation on this that I saw somewhere, but I cant recall the exact numbers now. It was something to the tune of taking the monthly income from that site and multiplying it by something... 10 maybe? But that doesnt seem right...

Anyone know what I'm referring to?



That is what I have also heard, 10x it's net profit. However you should also take into consideration the value of the domain. If you don't have time to market a site so it's not generating a lot of sales but you have a great .com domain I would weigh that into the equation.
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Postby Steve MacLellan » Mon Nov 13, 2006 8:32 pm

Try 3x it's yearly net worth -- unless it sells something branded, that you can't get anyplace else... like the only distributor for NIKE in North America.

But then... if you HAVE to sell it... it is only worth what someone is willing to pay for it.

If you're talking thousands of dollars, find yourself a broker.

Regards,
Steve MacLellan
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