However, using such calculators may not be the best way to know that the site is truly worth when shortcuts and generalization are used. The only way in which you can truly determine the worth of your website is by manual analysis and computation of the site. There is no need of getting someone to come and appraise the site as long as you know what you are doing.
An asset is usually something that has some monetary value that generates income. A website should also be considered as an asset, such as copyrights, Bonds, stocks, and even real estate, among others. It is, however, important to appreciate that this is a different asset because of the factors which contribute to the increase in value. There are some, significant things that allow you to determine the website value and they include:
This should be the first thing to consider. You need to ask yourself how much revenue the site is getting every month. You need to come up with a figure which is accurate. When the site is monetized, it may be generating something. Some of the common ways to monetize a website include:
- Advertisements such as info links, affiliates, AdSense
- Merchandise: this is sale of products from the site
- Pay to read or subscription kind of sites generally raises revenue.
There are many ways that a website can be monetized, but the above are the most common.
- Sites age
This is another important factor. The age of the site and the inbound links have to be considered. When the site is young and without many backlinks, it may not be as authoritative and valuable as a website with many backlinks and older.
- Marketable potential
The marketable potential of the domain name you use is also very significant. It is and an element used in SEO, brand competitiveness, and marketing. Having a domain name that closely relates to what you do can rocket the site into a position which is very profitable. A domain name without a brand and one that doesn’t make any sense has an opposite impact.
- Page views and page visitors
When a website gets traffic, then, the business may be really good. When these figures are high, the website is considered to be more valuable.
The size has to do with the content and the more unique it is, the more valuable it is. This shows that you have put in some serious effort into the website. When you have content which is easy to rank in the major search engines, then the value is high.
How to value the factors
The above are the most important factors. Each factor needs to be valued. This is a process through which monetary worth is estimated.
To value the revenue that the website brings, you sum up total the current earnings that the site has brought forth. In this way, you can figure out just how much the site brings you per month. When you average the per month earnings, then you need to determine the acceptable payback period and do your calculations. This is an estimate that is conservative, but safe.
As for the age and inbound links, every link has its one value, especially when editorially given. There are businesses in SEO as well as the link building services that charge quite high for every link. Each link should be given a price and then multiply this with the number of natural inbound links from the unique domains. If there are old links, the value of the link should be multiplied by the domain age.
The value of the domain name can be tricky to determine. You may end up valuing the domain name, but not the website. So as to determine the value of the domain name, you will have to use some tools. One of the best is AdWords. This is a tool provided by Google and it gives an accurate estimate. A domain name that has a trademark may be more valuable.
For the unique visitors and page views, you need to understand that page views are a more accurate measurement of the human visits that the site gets. This translates to monetary worth very easily. Most of the CPM is usually based on the page views criteria. For you to calculate this, you will have to know the page views every month.
So as to value the content of your website, there are some questions that you will have to ask yourself. The first one is how much it would cost if you got a professional to write for you. If you have a big site with many articles, you will need to value every article and then multiply with the number of articles. This may be a conservative estimate, but it is enough.
The worth of your site can be determined by summing up the different values of the important factors. You will have to add up the amount of revenue, the value of inbound links and age of the website, the domain name, value, the value of the unique visitors and page views and the value of the content you have in your website. This allows you to know how much you could sell the site if you wanted to.
Worth is usually very difficult to define. Sometimes we can say that something is worth as much as someone is willing to pay for it.
You can opt to use online tools to value your site. One thing you should note is that most tools aren’t really worth the time. The quotes you get can be very inaccurate.
You also notice that most of the online sites offer affiliate links to courses on making money online and eBooks and may not be the best.
The hard way is always the best way.
Keywords: website appraisal, SEO, AdWords