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Website Valuation Question

Knowledge Kick

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Does anyone have an opinion on what the best site is to get an accurate valuation of your websites? The first result on Google brings up Web Worth | Website Value Calculator but this site's valuation seems to be different than other related sites.

Any experienced e-biz people on here have a preference?
 
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healthstatus

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Take your earnings x 3 or 4, that is more accurate than any website that doesn't have access to your finances. Nobody will pay you based on what another website says your worth...

It only missed my valuation by about 43x what I have been offerred....
 
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Knowledge Kick

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Yearly earnings? Earnings to date? What do you think? My guess is that it's probably different for almost every site but I was hoping that there might be some dependable site out there that uses appropriate data.
 

Inphinity

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It's really a huge variable, to be honest. There's no hard-fast rule, imo. Most of the valuation metrics just use a formula based on daily pageviews, estimated ad revenue, and a multiplier.
 
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healthstatus

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Yearly earnings? Earnings to date? What do you think? My guess is that it's probably different for almost every site but I was hoping that there might be some dependable site out there that uses appropriate data.

Yearly. A buyer will ask how much money was generated by the in the last 3 months and the last year. They will then want to know where your traffic comes from. You might get bonus $$ if your domain name is outstanding or if the domain name is important to the buyer. If you have only been generating revenue for 3 or 4 months, the best you can probably hope for is 12-18x your last months earnings.

If you go to flippa.com you can see all kinds of websites getting sold and watch the important information that is being passed around, and asked for. I doubt any serious buyer there is asking everyone how much did webworth.info value your site at.

Now if you have a website in the top 100 in traffic, earnings valuations go out the window. Once you get to that point let us know and we can chat about that.
 
D

DeletedUser2

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I purchase sites on a regular basis. I only buy Profitable ones,
Here are some rule of thumb metrics I have developed

The Pluses
+ if there is a great domain name
+ if there is consistency in profit and traffic
+ if the site is doing over 50K yr in profit
++ if the site is doing over 100K yr in profit.

quick metrics,
site profits under 10K yr .8X of earnings (8K)
profits under 25K yr 1x earnings
Profits between 25K -50K 1.2x
Between 50K - 100K yr 1.5-1.8x
100-200K yr 1.8-2.2x
200-500K up to 3.5x
1M+ regular M&A Standards


DISCLAIMER these are MY metrics based on years of buying deals, industry knowledge, and a whole TON of additional information that I use for valuing sites. but just quick metrics. Flippa is a good place to get a pulse of the market, but not the best place to buy IMHO. Most of the deals I buy are private negotiated deals.

to be honest, I Have seen some really good sites go for 1x that were in the 500K range. deals like that are more dependent on seller motivation, and buyers quickness in cash.

All these sites BTW have their own products and services. they are NOT affiliate related sites, They are NOT advertisement based income, they usually follow a singular direct response model.

that's a quick answer, Hope it helps. PM me if your really interested in buying sites. there is just to much info for a single post
 

accelerator

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What zen******* said is pretty much spot on 100%. A lot of site under the 10k yr range will sell for even less than .8x earnings. People are willing to pay extra if they can see consistent earnings over a long period of time and if the traffic is diverse ( multiple search engines/direct/social)
 
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