How do you put a value on your website?

Discussion in 'Monetization Techniques' started by Brandon, Nov 2, 2011.

  1. Brandon

    Brandon Regular Member

    Jun 1, 2009
    Likes Received:
    Topeka, Kansas
    First Name:
    I'm sure everyone has seen the sites that will tell you how much your site is worth right? We all know those sites are for amusement purposes only right?
    Have you ever had someone offer to buy out your site, how did you come up with a number to tell them. Or have you ever looked to buy out someone site and how did you come up with that number?

    I use a few things when I'm going to place an offer on a site.
    • traffic via Google analytic (never trust AWStats IMO)
    • in my case of forums, the member activity
    • referral traffic, you want to know where the traffic is coming from. (not generated by bots)
    • monthly revenue and past months
    • number of backlinks, what sites like alexa, compete & quantcast etc... show
    • the amount of content that is indexed, strength of the pages

    I have a few more things I can list off but that should give this thread a good start.
    What do you use to determine the value of your site?
  2. Cerberus

    Cerberus Admin Talk Staff

    May 3, 2009
    Likes Received:
    Site value = Past 3 months revenue / 3 to get an average then multiply that by 12

    That is how I have always gone about it. Revenue always reflects activity. I mean of course they do have exceptions to the rule, but for the most part that is how you do it to get a starting number for opening negotiations. Obviously its an investment and you want a return. So, say last 3 months you made 400 dollars 133.33 rounded X 12 = 1600 give or take... That would be a good starting point. People think posts and members have value. That is not really the case. I could throw a general forum together, which I have before , and get well over 100K posts in less than a month with the right people. Does that mean its worth much? Nope... If your bring money into it then it has to be about the money.

    People with huge sites that make no money will argue this is BS. But, that is probably why they are not making money LOL

Share This Page