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Old 07-21-2007, 01:40 PM   #9 (permalink)
SeoDave
Bumbling Optimist
 
Join Date: Mar 2007
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There is no set formula for estimating the value of a website which will work with 100% certainty. As others in the thread have pointed out, there are a few benchmarks which you can use, but even using these will not give you an accurate figure. The truth is that the law of supply and demand is in full effect on the internet as it is anywhere else. Mike is right: you'll get for it what any sucker is willing to pay. Rather than figure out what the "market" deems as its worth, why don't you decide what you're willing to part with it for?

You could also do some research into sites that do have sales of sites similar to yours and see what the going rate seems to be for your niche/traffic/revenue. The value of any site to a potential investor would definitely be a combination of these 3 factors. Is your niche profitable? I would pay high $XX,XXX+ for 100K+ targeted visitors in a mortgage niche (some people would pay way way more). I would probably pay low $X,XXX for 100K monthly visitors to a site about the special olympics. Also, the origination of your traffic is of high importance. Does most of your traffic come from the US or another first-world country or do you get most of your visitors from third-world countries? What I'm saying is that the QUALITY of your traffic is important. What avenues does your traffic arrive at your site through? Do you have thousands of backlinks and high PR or do you receive most of your traffic through one or 2 internet portals? How steady is your traffic - have you been getting 100K uniques for many months or did you just recently start getting that many?

As you can see, there are so many questions to be asked that the only true way to find out your website's worth is to A) Determine its worth to you or B) Determine its market value by placing it on the market and seeing what it will sell for. I'm willing to look at your site and give you my best estimate, but in all reality that's all that anyone can do. They can ESTIMATE the value of your site and from there you can determine what you are willing to part with the site for.
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