Valuing a website

[HarveyC]

I've been wondering about the value of one of my smaller websites, and can't find any consistent advice about the value other than getting an appraisal.

Sure, it depends on source of traffic, age, backlinks, unique visitors, pageviews, brandability, industry status etc etc. and of course whether you get a decent buyer.

Some people reckon a site is worth 2x yearly profit, some reckon 10x.

If you were a buyer, what would you pay for a site, that's revenue is £450 a month, PPC costs £150?

2x year would be £7k... more or less?

[gadget]

It depends on how sustainable the revenue source is likely to be and whether the PPC bids are likely to increase due to increased competition.

Personally, in this ever changing market I'd pay a max of 1 year's earnings. However, before I committed I'd work out if I could do the same thing myself, quicker and for less money.

The value to me is therefore in the unique element of the site along with it's sustainability rather than it's historic revenue.

Feel free to send a PM.

[HarveyC]

Thanks, really good answer. Obviously with most of the traffic being PPC (and some organic) the value would be limited, but at least I can say it should be sustainable and certainly isn't easily duplicated.

[Cockneyrhyme]

prev poster is correct - the danger here is that if you are doing something simple, it's almost always cheaper to clone it than to buy it.

[Rynert]

If the PPC minimums trebled over night would you have any profit left?

That is what a buyer would ask themselves.

If that is the only (or vast majority) source of income you would be lucky to find somebody willing to pay 12 months profit.

[HarveyC]

I see your point - anyway, appreciate the advice, it's only a small site that's probably better off spending a bit of time gaining organic positions before considering selling.