Thread: Proper website valuation

I have a question that has been coming up often with new website ventures. I have come to the realization that sales $ is not the sole figure of how much a website is actually worth. With SEO articles, cross promotion, social networking, bounce rate, alexa rating, traffic, traffic sources, page rank, domain name etc... there are a lot of factors

Is there more or less a rule of thumb for each of these factors? How would you properly evaluate selling/buying a site taking into consideration all factors that would be of value? I know there are sites on flippa that sell for $1k+ without even bringing in any sales...

it's a calculus that boils down to future value of money - sales, margins, growth rates, & possibilities. this is a very broad question.

Originally Posted by carendt242

it's a calculus that boils down to future value of money - sales, margins, growth rates, & possibilities. this is a very broad question.

Not to be a complete D**k, but I believe you mean algebra, math that uses letters / symbols to represent numbers and quantities in formulas, where solve for a variable. Calculus is generally defined as math that has derivative, integrals etc.

Not to be an ass hahaha

Originally Posted by carendt242

it's a calculus that boils down to future value of money - sales, margins, growth rates, & possibilities. this is a very broad question.

I agree, I wish I could sort of narrow it down but I can't. I am in the process of building up a pre existing site I plan on selling at the end of the year. I'm about 3 weeks into my own SEO campaign and it is going flawlessly. Lowering my bounce, getting more search engine traffic, more time spent on the site, yada yada. I am also doing quite a bit of other things to the site, but I can't really figure out I guess how much(if any) value I am adding to the site.

I don't know much about determining website valuations, but from what I've seen over the past several years, the people who are actually determining the valuations don't know either.

Originally Posted by Youngbp04

Calculus is generally defined as math that has derivative, integrals etc.

Calculus has a meaning outside the class you took (or didn't). It's just a method of reasoning.

Here is my reply to you.

Purchasing a profitable website

It really is what one thinks it is worth.

Originally Posted by lifeoftheparty.

Calculus has a meaning outside the class you took (or didn't). It's just a method of reasoning.

I took multiple calculus classes, I majored in advanced math and quantitative finance

But that is besides the point.

He states multiple variables with a single level outcome, that is algebra

Is there a language barrier here?

There are some conventional figures, but unless you're talking about something that is really bringing in the cash, don't expect to get tech valuations that you might have read about.

Here is what you'll get from the viewpoint of someone who would buy a website.
Is it bringing in revenue? If yes how much?
I don't care how much money you invested on the design or how unique it is, unless I'm paying for it, it's the least of my concern at the moment. I want to see how much you are consistently taking in. This is the numbers that will convince me to buy or not. I will rather purchase a website that is simple but brings in more money than the other way around. Simple logic though.