Valuinga website
Discussion
Hoofy said:
How much money is it bringing in?
I'd be tempted to value it as you would a business.
And if the answer is zero - how much value does that number of visitors have to you?I'd be tempted to value it as you would a business.
How much value does the current owner think it has?
Like most businesses, the value is either in the money it already generates, or the money it could generate to you - there's not a lot of information we can provide on here without a lot more information.
How does it make money?
Via advertising? If so then what type? AdSense revenues have been falling across the board for most sites for years. Taboola/Outbrain/another Native ad platform? Those perform well for lots of publishers but web users are getting savvy to them being ads, so I expect returns to fall. With either of these (or any advertising really, thanks to Ad Blockers) I'd price in for a drop off in revenue over the coming years.
Via a database? Is there a solid user base that you can market to with offers, or sell sponsored emails? How many unsubscribe when being sold to, and how many convert? Is it a growing list or stagnant/shrinking?
Affiliate opportunities? Travel is one of the few markets where affiliates can still make good money and some of the commissions can be high if the right product (luxury travel and cruises, or add-ons like insurance).
Sponsored content and guest blog posts? Can be a time consuming way to make lots of money and you have to be careful not to get on Google's bad side by selling links.
As mentioned, you'd value it like a normal business but with websites the multiples seem to be smaller as the future is more uncertain. A change in affiliate rules, an unfavourable search engine update, etc and things can go south rapidly, so that tends to get considered in the valuation. Not that I know too much about this area as I've never bought, sold or valued a website but I have dealt with quite a few who have.
Via advertising? If so then what type? AdSense revenues have been falling across the board for most sites for years. Taboola/Outbrain/another Native ad platform? Those perform well for lots of publishers but web users are getting savvy to them being ads, so I expect returns to fall. With either of these (or any advertising really, thanks to Ad Blockers) I'd price in for a drop off in revenue over the coming years.
Via a database? Is there a solid user base that you can market to with offers, or sell sponsored emails? How many unsubscribe when being sold to, and how many convert? Is it a growing list or stagnant/shrinking?
Affiliate opportunities? Travel is one of the few markets where affiliates can still make good money and some of the commissions can be high if the right product (luxury travel and cruises, or add-ons like insurance).
Sponsored content and guest blog posts? Can be a time consuming way to make lots of money and you have to be careful not to get on Google's bad side by selling links.
As mentioned, you'd value it like a normal business but with websites the multiples seem to be smaller as the future is more uncertain. A change in affiliate rules, an unfavourable search engine update, etc and things can go south rapidly, so that tends to get considered in the valuation. Not that I know too much about this area as I've never bought, sold or valued a website but I have dealt with quite a few who have.
AyBee said:
Hoofy said:
How much money is it bringing in?
I'd be tempted to value it as you would a business.
And if the answer is zero - how much value does that number of visitors have to you?I'd be tempted to value it as you would a business.
How much value does the current owner think it has?
Like most businesses, the value is either in the money it already generates, or the money it could generate to you - there's not a lot of information we can provide on here without a lot more information.
and remember that high numbers of users = high running costs...
I would much rather have a website which needs no work / has 100 visitors a month, but where they are totally relevant and convert at a high % to income, than a website with millions of visitors who simply take away information - don't push cash my way and cost a fortune to service...
you can get any site to have a million visitors in a week - simply give away £100 to each visitor
numbers on their own mean nothing
I would much rather have a website which needs no work / has 100 visitors a month, but where they are totally relevant and convert at a high % to income, than a website with millions of visitors who simply take away information - don't push cash my way and cost a fortune to service...
you can get any site to have a million visitors in a week - simply give away £100 to each visitor
numbers on their own mean nothingm3sye said:
I was more asking is there businesses out there that will value a website ? I was not asking PH to value the site.
His accountant should have a good idea.And if the accountant doesn't have an idea, or at least can't explain the dynamics of valuing a business then they need a new accountant.
m3sye said:
The Moose said:
With so little information it's impossible to value.
How much is my car worth - it has a top speed of 178mph?
I was more asking is there businesses out there that will value a website ? I was not asking PH to value the site.How much is my car worth - it has a top speed of 178mph?
If there are 3.4 million visitors (I presume that's uniques), and every single one generates £100 on the site per year, then that's a potential income of £340,000,000 which is quite handy. If, however the visitors generate £0.01 each, then that's a potential income of £34,000 which isn't so good when you have to run the site.
Then there's what it costs to attract the visitors. So, if it costs you £10 to attract each visitor to the site then you've got to fund £34,000,000 of advertising each year. Fine if you generate £340,000,000...but not if you generate only £34,000!
You can't attach a realistic/accurate valuation to a website just by knowing the amount of traffic it receives.
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