Appraising The Value

[Athens]

One thing I've always wondered is how does a person appraise the value of their site when they want to re-sell it? Say for instance you buy a site with a PR of 5 and in 2 years it has a ranking of 8. How much more is it worth based just on that factor?

 

[SenseiSteve]

The appraised value depends on how that Page Rank was attained. If the network that built the PR8 doesn't transfer with the site (where the network is owned by the seller), the perceived value to the buyer will be much lower than if the network is intrinsically tied to the website. I cruise Flippa from time to time and I'm amazed at what some of these sites sell for. For example, a site that historically pulled in $200 to $250 in revenue monthly x 2 years sold for $8000. Don't ask for the URL because I don't remember it - I was just cruising.

 

[Alex - A2 Hosting]

When buying / selling a website I would first consider the revenue along with the traffic only then would I consider the extras like pagerank to come up with a price figure.

 

[handsonhosting]

A business (or anything for that matter) is only worth what someone else will pay.

I'm involved with a number of ventures, and while there's an inherent value of each business, the real value is determined by the person who wants to spend the money.

With regards to PageRank increases - that's a tricky area as you don't actually control that factor. In a moments notice, you can have that ranking yanked away from you by Google - so even projecting for the future can be tough. I watch Flippa from time to time also and I'm amazed at some of the figures people throw around, but if that's what they want to spend, that's what they spend.

 

[theprimehost]

When buying / selling a website I would first consider the revenue along with the traffic only then would I consider the extras like pagerank to come up with a price figure.

Bingo. Is it making any money. What are the chances of an ROI, etc..

 

[slashpro]

Bingo. Is it making any money. What are the chances of an ROI, etc..

Agreed, I've seen sites that make $100-400/mo get sold for quite a large amount normally 1-2 years worth of the actual profit.

 

[zahiid]

When buying / selling a website I would first consider the revenue along with the traffic only then would I consider the extras like pagerank to come up with a price figure.

Here I will, your need will demand the price. The pricing provided by the sites never be true.

 

[SwiftHosting]

As a rule of thumb, most accept that the minimum should be 12 x the monthly profit.

 

[KarlZimm]

Generally, 0.8-1.2x annual revenue or 4-6x annual profit are decent ratios/indicators. There are specific reasons for each method, like the annual revenue model/method makes no sense if it isn't recurring/sustained revenue, was achieved with high marketing costs, or has high operating costs.

 

[247-host]

I agree minimum should be 12 x the monthly profit.

 

[VPS9.net]

The Main thing to consider here will be Revenue from the Website as well as the Traffic the website gets along with the PR.