Dec
Value a Web site
How to Value a Web site
Wondering the worth of your web site?
Do you want to sell off your web site for the best price?
If yes, then it’s important for you to know the value of your web site. Deciding the worth of your web site will surely be the most crucial business decision you will need to make.
Profitable buying and selling is at the basis of any viable business. After putting in the sweat and going through the grind to make a successful web site, you will only get one chance to sell it off. Remember that once the deal is signed and the sale closed, then there is no turning back.
That’s it, no point in brooding over how less you sold it for or whether you should have sold it at all. Agreed that the dot com bubble has burst and today the investors are more and more skeptical. But at the same time web site owners are getting savvier. If you are an Internet Entrepreneur and understand how to buy or sell a web site, then even today you can find deals with unbelievable returns. A lot of promise of the web was founded on business principles and it won’t be an exaggeration to state that with the magnanimous deals being made all around, the web is surely living up to its promise.
There are not clear-cut ways or conventional formulas to determine the value of a web site’s. Setting a price tag on your web site is your own judgment call to which all concerned parties may not agree to. During the dot com boom, certain norms were derived from normal practice to calculate the worth of a web site. Firstly, you can calculate the value of your web site but multiplying its net profit by a constant figure. This method is not error free as there remains a huge debate on the value of the constant figure and moreover it just takes into account the purely business aspect of the web site. Secondly you can calculate the value of your web site by estimating the cost it would involve replicating it. The money or man hours spent on the quality and quantity of the content, images, scripts and applications on your web site can help you determine its value. Other factors which can be taken into account are the customer database and number of subscribers who have more value to advertisers. Web sites having a larger customer base command higher prices.
Thirdly you can take into account whether the web site has a well-established brand name and industry recognition. Web sites getting regular publicity from the media and receiving awards commands a higher price. Today entrepreneurs are willing to pay huge sums to get their favorite domain name. So, if your web site has a domain name which is sought after, then it will surely attract a higher price. It is also important to know whether the web site is maximizing its revenue potential. You can also charge a premium agreeing not to create a web site that is similar to the web site you are selling for an agreed period of time.
You may have any number of reasons for creating your web site. You may want your web site to be your only or extra source of revenue. It’s also possible that you might not want to make big money or any money, for that matter, out of it but simply want to get your message across. Whatever may have been your reason for creating your web site, the simple fact remains that creating and nurturing your own web site requires a lot of your precious time, energy and expense. It’s quite satisfying to see your web site grow and become popular. However, there may be a time when you would want to sell your web site for whatever reasons. After putting in all the hard work, it is quite natural that when the time comes to sell it off, you would want to get the best possible price for it. So be very careful while deciding a price for your web site. Remember that once you sign on that dotted line, there is no turning back!
