If you are thinking about putting your website up for sale, you’re probably looking for ways to maximize its value. But all website owners should be mindful of their site’s value anyway. You never know when you might need to sell it, and the things that make websites valuable usually make them more profitable as well. So, it would be wise to start researching what affects the value of a website and make yours as valuable as possible. Let’s take a look at the factors that can affect a site’s value.
The more traffic your website gets, the more valuable it will be. But the source of the website’s traffic matters too. If most of your website’s traffic is coming from paid sources of traffic, for instance, it won’t be as attractive as if it came from SEO since it’s more organic.
A buyer cannot tell if they’ll be able to get the same results as you if they don’t apply your strategy or spend the amount of money you spend on advertising. This is why you will have to find a way to diversify your traffic sources if you rely mainly on PPC and other paid means for traffic.
The revenue your website makes will probably be the most important factor in your case unless you’re trying to sell an informational site with potential. Pricing non-monetized sites may be difficult, but monetized online businesses are fairly easy to price.
You can choose to go with a DCF analysis, precedent transactions, or a classic earnings multiple valuation, though the latter two options are much better for online businesses. We do suggest that you research all these valuation methods, however, and look into the pros and cons of each to see which one would be most fitting for your business.
The amount of IP that your buyer will be inheriting will have a direct impact on the value of your website. A website that has a barren blog section and no product that it can offer to hook visitors cannot command the same valuation as a website with hundreds of blog articles and multiple info products. A newsletter also counts as intellectual property and having a massive list will certainly entice buyers.
So, if the content on your site is very thin, we suggest that you take the time to build it up with meaningful content. This will not only make the site more attractive to buyers, but it could bring you tons of organic traffic as well.
The Age of the Domain and Website
Did you know that a domain that is one year old will always usually be more valuable than one that has just been registered? Domains that are more established tend to sell for more, and the same applies to websites. A site that is six months old will not be as valuable as one that is one or two years old, for instance.
There is a bigger gap between a site that is six months old and one that is 12 months old, than there is between one that is 12 months old and 18 months old, however. So, if you can, try to wait until you get through the one-year psychological barrier. You’ll get a substantial boost in valuation with little effort, and this gives you time to boost your site’s value through other means.
These are only some of the factors that will impact your site’s value, so we suggest you keep learning. This will allow you to get the most out of your website and avoid errors that could cost you down the road.