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  1. #1
    Member Sudilly's Avatar
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    Fair Price for Site
    Someone is interested in buying a domain, site and community. Is there someway to determine a fair asking price. I'm not sure if I even want to sell but I wouldn't turn down a great deal. TIA

  2. #2
    ABW Ambassador JJJay's Avatar
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    This question cannot be answered without giving full details. Its like asking for the fair price of a house, car or diamond without giving details.

  3. #3
    Member Sudilly's Avatar
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    Quote Originally Posted by JJJay
    This question cannot be answered without giving full details. Its like asking for the fair price of a house, car or diamond without giving details.
    I realize that...I just wondered how to go about assessing the value.

  4. #4
    ABW Ambassador JJJay's Avatar
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    Quote Originally Posted by Save Benjamin
    I realize that...I just wondered how to go about assessing the value.
    I personally would not sell for less than 2 years earnings, some people here quote 6 months earnings. This week Getty Images purchased a stock photo company for $135 Million, the comapny had sales of roughly $50 Million a year and $5 Million in profits. I still stick to my 2 years earnings figure.

  5. #5
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    Check out

    http://www.urlbuyers.com/

    The estimate does not take into account many factors, including website sales etc. and most of the time it gives you a feel good figure.
    You can also check out www.sedo.com for more information.

  6. #6
    Newbie TheHoff's Avatar
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    Some general guidelines used on other site sale forums (just estimates, not saying these are written in stone)

    Adult sites: 3-6 mos earnings
    Typical SE/PPC driven content site: 10-12 mos earnings
    Community turning profit: 2 yrs earnings

  7. #7
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    Notes on Valuation of Developed Websites

    Creation:

    How much will it cost to create a new similar (comparative) website today. While prices would certainly vary from developer to developer, actual offers from developers can give a realistic idea about the costs.

    Traffic:

    While all traffic is not equal, the average of top ten pay-per-click bids on the site's primary keywords can give a fair idea as to the value of traffic the site is generating. If the average value is, say, $0.25 per click and the site gets 5,000 unique visitors every month then the value of traffic can be estimated at $1,250 per month or $15,000 annualized. Opinions vary as to whether the annual value is fair or it should be calculated for a longer period.

    Revenue:

    If the site is earning a net profit of, say, $1,000 per month from the sale of its products or services then we can annualize the value at $12,000. Again, opinions vary as to whether the annual value is fair or it should be calculated for a longer period. However, a website that generates $1,000 with little or no effort will be worth substantially more than a website that requires, for example, stocking and shipping of goods.

    Product/Service:

    The valuation of the product or the service itself sold or provided by the site will, in all probability, require a separate and equally complex valuation. This will not be applicable to all sites.

    Content:

    Original and exclusive content on the site or a database of useful information or of users / subscribers / customers, if present, can make a lot of difference and add substantial value to a site. However, over time, the quality of the content or the database will surely reflect in the traffic figure calculated above.

    Domain Name:

    Although domain name values declined substantially (seem to be on the rise again) compared to the pre-bubble days, in general, one-word generic and type-through .com names are still a rare a commodity. If a site is built on such a domain, it will command a substantial premium.

    Obviously, there would be more variables but these notes provide a starting point for negotiations to begin.

  8. #8
    Member Sudilly's Avatar
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    thanks all!

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