Tips and tricks for website value calculation

Why should I know my website value?

You can compute your website value. It is important to estimate the value of your website in dollars. This is not a hard task as there are many online website value calculators to help you do so. However, most of them will give you an inaccurate result with lots of generalizations, shortcuts and flaws. So the best way to count your website value is to do it manually.

Of course you can hire someone to do it for you but it’s also possible to do it yourself as you have all the statistics data.

Website value factors

  • Amount of revenue generated on monthly basis: advertisements (Google AdSense, affiliates, Infolinks, etc), sales of original products from your website, subscription fees, and many others.
  • Site age and inbound links. Old sites with more back links are more valuable than new ones.
  • Marketable potential of your domain name. It will be more valuable if it’s a popular search or a brand name.
  • Total amount of page viewers and unique visitors. Basically it’s traffic.
  • The amount of unique content – the more the better.

What is my website worth?

So how would you approach the computing your website value, knowing all the important factors?

First of all, determine the total amount of your current earnings. Count the profits from advertisements on your website, affiliate earnings, info link earnings, average sales from merchandise to determine the total website monthly income. Multiply that number by 12 (months) to get a total annual income and then multiply that by the acceptable payback period (in years). This numbers wouldn’t include the value of money over time but there are some complicated formulas in finance to include that too.

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Secondly, determine the value of age and inbound links on your website. Count the number of links on your website and multiply them by the price of placing one link on your website to get the total value of links.

Then this value will be multiplied by a special coefficient, which is determined by the ratio of old links to new links in percentages.

Further steps to calculate website value

Then you need to determine your domain name value. The more competitive the name the more valuable it is. To determine the value of your website domain manually do the following:

  • Determine the value of the traffic potential. Use special tools for that. https://adwords.google.com/select/TrafficEstimatorSandbox
  • Check the max CPC and Daily budget values matches for your domain name
  • Click the estimate button
  • Compute the value using the following formula

Traffic value = Global monthly searches x Estimated avg CPC x estimated click through rate biding to the keyword x approximated one year period for the traffic value+$30.

  • Multiply it by number according to your TLD.

.com – x 7

.net – x 2

.org – x 1.5

others – x 1

  • If the domain name is protected by a trademark brand it will be multiplied by a special value.

Trademarked with substantial value – x 5

Trademarked but not yet so popular – 1.5

No trademark approved – x 1

  • Count the value according to the number of page views. Divide the number of views by 100.
  • Consider the the size of your website’s content. A 700 word article would cost like $50, so count the amount of articles and multiply by their cost.
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Add them all and you will get your website value.

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