How to value a website?

[Nappy Bunch]

What are the factors that go in to valuing a website rather than a domain name?

Traffic - is there a formula that traffic amounts to value?
Sales - how many x's your sales is the website worth?
Search Engine Rankings - does this add value?
Customers - does how many customers or subscribers add value?

For instance if your domain name ranked highly for a number of competitive keywords how do you calculate the value this adds to the website?

How do all the factors add up to the value..

Any help would be great.

 

[enlytend]

Pricing based on some multiplier of revenue is reasonable, generally a year and up. How many years to base it on depends on the age, performance and nature of the site. You can't ask 10 years revenue for a 1 yr old site or one on a topic that may become outdated in 10 years.

Traffic and rankings mean nothing by themselves - if they're not converting, it's like buying a house that's a fixer upper.

Customers and subscribers would add value if they contribute to the bottom line. If the site has an opt in email list that would add value as long as the terms they agreed to would allow the new owner to market to them,

But it's like with domains: there are many variables, trying to come up with a formula is about as useful as trusting automated appraisals.