Buy, Sell, And Value A Website
By Sharon Housley
So, you’ve built an empire on the Internet, and now it’s time to move on. Well OK, maybe its not a full-blown empire, but it has taken substantial blood, sweat and tears to create, and you want to make sure you get a reasonable amount of money for all your efforts. Determining the value of a website can be tricky, because a number of factors can play a role. Factors involved in determining the resale value of a website include…
1. Traffic Volume
The volume of organic web traffic that comes to a website influences the value of that website. Organic web traffic refers to any traffic that is not the result of advertising.
2. Ranking For A Critical Phrase
How a website ranks for critical or popular keyword search phrases can also play a role in the value of a website. Ranking high in Google’s organic search results for important, relevant, or popular phrases can influence the value of a website.
3. Volume Of Backlinks
The number of websites that link *to* the website in question can influence the amount that the website is worth. The number of incoming links, and the quality of those links, can both impact the value of the website.
The PageRank (also referred to as PR) can be an indication of how Google views the website. A high PageRank indicates that a website is trusted by Google. PageRank may influence how much a buyer is willing to spend on a website.
Alexa’s ranking can be manipulated easier than some of the other factors. Nonetheless, a high Alexa ranking can show historic changes in a website, and can play a role in determining a website’s value.
6. Established Revenue
Any revenue that a website generates can clearly show a website’s earning potential. Naturally, the higher the earning potential of a website, the more its value will be.
7. Web Logs
The website’s logs can be extremely useful in determining the site’s value. Web logs not only reveal the volume of traffic that the website receives, but they can also show some other very important statistical information … which you may not want shared! So a word of caution is in order — be careful when deciding which details you wish to disclose to potential buyers.
8. Domain Name
A “good” or short domain name can also influence a website’s resale value. Shorter domain names are becoming more and more scarce, and a short, catchy domain name may help to increase a website’s value.
The age and history of the domain can influence a website’s value. An older domain is typically more valuable than a newer one. However, if an older website had historically ranked well but no longer does, that could have the opposite effect and could negatively impact the value of a website.
The technology behind the website can also influence the site’s value. If the website is database-driven and dynamic, and the technology that supports the website is included as part of the sale, that may also impact the value of the website.
Determining the value of a website can be complicated and confusing. Ultimately, a website is only worth whatever the highest bidder is willing to pay. But providing the details above during the negotiation process may help close the deal and make the sale.
About the Author:
Sharon Housley manages marketing for FeedForAll software for creating, editing, publishing RSS feeds and podcasts. In addition Sharon manages marketing for RecordForAll audio recording and editing software.