The easiest method is to use the
Net Income the website has produced over the last 12 to 24 months to
arrive at a value range.
However, we at BuySellWebsite® use a
monthly average of the last three months of
Net Income and
Unique Visitors and then multiply
by a nine and twelve month multiplier to obtain a value range.
An example: If a site had an
average monthly
Net Income of $4,533 for the last three months. And if the site had
a monthly
Unique Visitor average of 8,660 for the last three months. Then we
can value it in the following manner.
To put a dollar value on traffic we take one-half the average
of the top fifteen pay-per-click bids on
overture.com for a
relevant keyword and multiply it by the unique visitor average. In
this example we'll say the average Pay-Per-Click number came out to .16¢
(Multiply .16¢
by 8,660 to get a unique visitor value of $1,385)
Then to get a value range we add
the two numbers together and use a nine and twelve month multiplier to come to a value range.
$4,533
(Avg. Monthly Net Income)
+ $1,385
(Avg. Monthly Unique Visitor Value)
= $5,918
Multiply by a 9 and 12 month
multiplier to get...
$5,918 x 9 =
$53,262
(Low Value)
$5,918 x 12 =
$71,016
(High Value)
This can give you a reasonable idea of how much a website
is worth; however there is also something called the "content value"
which is all the other variables that make the site more or less valuable;
for instance the websites uniqueness, professional design, proprietary software and market
position.
This is why we recommend getting an
Website Appraisal for your website. The content value
can sometimes sway the value of a business by as much as 40% either
way.
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