“The Truth About Website Valuations”

If you’re buying websites you need a tool for creating a website valuation.

The most common question asked by anyone buying websites is “What’s a website worth”.

The common answer you hear and find online is 10-15 times the monthly net income of a website.  If a site makes, after expenses, $1,000 per month, then the site is worth $10,000 – $15,000.  BUT, is this really true?

Website Valuator.
Estimate a Website’s Worth.

If buying sites at 10 – 15 times monthly revenue was the rule then why do we find sites that sell for far more than that on sites like Flippa and BizBuySell or far less in some cases? So what is the true method for website valuations?

The answer is easy and complicated.  A website is worth what anyone will pay for it.  Sounds vague right?  We’ll it’s the truth and it’s what you need to get your head around before really going out and buying websites.  Why overpay for a site when you don’t have to?  You can find yourself in a bidding war on an auction site and pay a lot more than you should.  

Or you could find yourself stepping away from a site that you wanted to buy only because the multiple was greater than 15.  However, if you had purchased the site you may have been able to move the multiple to 5 with just a couple tweaks. 

We once purchased a site for almost 80 times the monthly net revenue.  After 2 hours to change one thing on the website, the multiple went from 80 to 4.  So what is a website really worth?  The answer: ‘What you can do with the site to get the multiple you’re willing to pay.’

That being said, having a good website valuation tool is critical.  With the buying and selling website.com membership you’ll get access to a domain valuation tool, just to understand the value of the domain itself and you’ll get access to the ‘Website Valuator’ where you’ll enter specific data get a fair and reasonable estimate of a website’s worth.  

You’ll get a specific dollar figure and a set of ideas on how to increase the value of the site and ways the site could decrease in value (key to understanding risk).  If the site was for sale in the past on an auction site, you’ll see that listed as well.

Understanding valuations and how they can increase or decrease will make you a lot of money.  The ‘Website Valuator’ is key to understanding.

How to get Access to Website Valuator

As a Premium Member you’ll have instant access to Website Valuator.  Simply sign-up now and you’ll immediately be able to type in the website you are looking to buy or sell and get an immediate valuation.

Sign-up now for Premium Membership Access to get started today.