So, you want to know the age-old question, “How much is a website worth”?
A lot of people that are looking to sell their websites spend a lot of time searching the internet for the answer to this question. More often than not there is a lot of information that isn’t completely accurate on the internet.
For instance, I did a search on Google for “How much is a website worth” and one of the first things that showed up was worthofweb.com. Now, I’m not slamming this site or anything. I do think it’s a good idea and everything, but certainly, the information it provides isn’t set in stone.
I put in a website that I recently sold leopardgeckoland.com and saw that the website was worth $559.
Also, I put in another website I recently sold tbwhs.com and saw that it’s worth $18,373.
Now, how can this website tell us how much our website is worth I wondered? Well, your website is measured by a number of metrics:
- Estimated website traffic.
- Estimated earnings.
- Alexa rank.
- User Experience & User Interface.
Ok, so the first thing is first. worthofweb.com had my estimated website traffic way off. It stated that tbwhs.com was getting 4,000 visitors a day which is really about 150 a day. Also, my estimated earnings were way off, too. For example, tbwhs.com was said to be making $58/day which in reality was really more like $3.33/day. I recently sold tbwhs.com for under $4,000 on Flippa.com (see my Flippa.com reviews) so I know it wasn’t really worth what this website stated it was worth.
Also, I sold leopardgeckoland.com for $385 and worthofweb.com stated that it was worth $559. Also, the visitors per day and daily income were drastically off. leopardgeckoland.com didn’t really generate any money because it wasn’t monetized with AdSense or any affiliate links.
Therefore, I can say this. Worthofweb.com isn’t really a good tool for seeing how much your website is worth. Furthermore, there are lots of similar websites that you can put your sites URL in and it will give you an estimate of how much your website is worth. Pretty much every site I went to gave me a rough estimate and I really don’t believe they have much merit.
So, how can you really tell how much your website is worth?
First thing is first, it has to do with what kind of website you have. There really isn’t a simple tool that you can use and instantly know how much your website is worth. You need to consider the following things:
- How much does your website make per month and year? Obviously, you’re going to want to create an Excel spreadsheet on your month and yearly earnings for your website. It’s been said that you can multiply your websites monthly profits by 24 to 36 times to give you the value of your website.
- How much content do you have on your website? If you got 100,000 pages indexed in Google that is a lot more work than a website that has 10 pages indexed in Google. I like to multiply the pages of content (disregarding contact, about us, privacy policies, etc) and multiply that number by 15. Bare in mind the content needs to be quality content, too. Poorly written content or duplicate articles are not going to add any value to your website. I consider indexed pages that have 1,000 words on each page to be valued at $15, too.
- How many email subscribers? I would value an email subscriber at $1 per subscriber. Obviously, hopefully, you didn’t do anything dodgy to get these subscribers or that will affect the value of your subscribers.
- How many social followers do you have? I would value each follower on your social media profile at $.10 per follower. This can drastically difference between different niches, though.
- What are your net profits? Simply, deduct your hosting bill, domain registration, marketing services, etc. to get your net profit total. Whoever buys your website is going to need to cover these expenses once they buy your website so you need to take that into consideration.
- Is your monthly traffic rising or falling? Also, look into your Google Analytics to see if you’re traffic is increasing or decreasing. Sites that are increasing are going to be worth more than websites that are not increasing. Sites that are increasing will not be as valuable to buyers because they have to spend money on to increase the traffic.
- How competitive is your niche? Lastly, just look at other websites in your niche. Are there lots of competing websites on Google? Do they charge a lot for certain keywords with Adwords?
So, to wrap it up let’s use tbwhs.com as an example. It makes about $3.33/day. We will multiply that by 30 (which is halfway between 24-36). That equals $99.90. Take $99.90 X 30 and you get $2,297. There are 175 indexed pages on that website so multiply that by 15. That equals $2,625. The traffic was increasing and it’s in a competitive niche so I added a value of $1,000 for those two metrics.
So, $2,297 + $2,625 + $1,000 = $6,622. I was spending about $350 year for hosting, email mailers, etc. So, I would have valued that site at about $5,800 to $7,000 It did sell for $3,850 which was a great price for the buyer. I really could have sold the website for another $2,000, though.
As you can clearly see the tools online didn’t get the website value right at all. I should mention that I checked the website on various websites and got estimates of $7,000 to $23,000 (for tbwhs.com). None which are really in the right ballpark. The same can be said about LeopardGeckoLand.com.
These automated tools are not something you should really rely on. Instead, you’re going to want to use a manual metric that I provided in this article. That will give you a much more accurate formula to see how much your website is really worth?
Other articles I have read on evaluating websites value:
However, I would like to hear your feedback on what you do to figure out how much a website is worth? Do you have a way of checking to see how much you’re willing to buy/sell a website for? Please leave your comments down below.