Fri 24 Aug 2007
How to Determine the Value of Your Website
There may be a number of reasons why you would want to sell your website. This could range from cashing in at the right time, to moving on to pursue another interest or business.
Whatever the reason, this is a major decision. So you need to plan wisely - because once you make the decision and sign the papers, there is nothing that you will be able to do about it later.
Setting a Fair Price
The most frustrating part about selling a website is setting a fair price for it. The reason it is so difficult is that there are no standard norms or procedures. The price of your website is only as much as someone is willing to pay for it. This is where the demand-based economy comes into play. If your website's products are in high demand, and if there are many people waiting to cash in on its potential, the price will shoot through the roof.
However, such success stories like ‘YouTube' come along just once in a while. Most sellers have to be content with whatever price they are being offered. Many websites remain unsold, as owners often have very high expectations in terms of price.
Arriving At a Ballpark Figure
Here are two ways that you can arrive at a rough price range that you can expect to receive for your website. However, these are just rough guidelines, and the actual price will have to be negotiated by you.
- One of the ways to set a price is to multiply the net profit with a number (usually 8 or 10). There is no specific reason for doing this; it's just an empirical way of determining the price of a website.
- The price of a site can be determined by tabulating the “assets” of the web site. These could include the content, the quality, and the design of the page, its page ranking, traffic, customer list, database and the domain name. Each of these factors will carry a different weight on different sites, depending on the audience targeted.
If you're looking to sell your website, make sure that you set a price that is both fair, and one that you can live with.