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Old 06-28-2007, 09:58 PM   #1 (permalink)
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Values of developed websites?

Hi there

Is there a way to calculate the value of a website? I know PR and traffic are very important but if the site is the first listed at Google for its keyword does that increase value? I'm wondering because a few of my sites are listed in the first position but aren't exactly making any money or getting much traffic. They only very recently became listed 1st on Google but I'm not seeing much increase in traffic or revenue.

Thanks!
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Old 06-29-2007, 12:39 AM   #2 (permalink)
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There are really so many metrics for valuation of websites.

I won't suggest an explicit formula to calculate, but for basis, general methods include traffic, development state of the site, unique selling proposition of the site, subject matter of the site, specific custom features of the site-- especially pertaining to the topic of the site, search engine matter, PageRank, revenue (if any), outward potential of the site and its domain name, among others.

For a brute-force/standard measurement of value, many webmasters normally people usually peg a value based on total earnings times 12 to 24 months.

In the end, it's like selling property, there may be "fair market" standard and such, but what matters is what the seller is willing to sell for.
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Old 06-29-2007, 02:43 PM   #3 (permalink)
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Quote:
Originally Posted by nicholas
In the end, it's like selling property, there may be "fair market" standard and such, but what matters is what the seller is willing to sell for.
^^ Definately so

I have also heard about the 12-24 month earnings but some people valuate and sell also based on 6 months. Other factors that may cause differences in price in clude if it has a high PR and backlinks and traffic. Even the 12-24 month range is arbitrary as earnings by one party may seem like inflated statistics to others and some sellers will demand that growth be taken into account.
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