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Do You Know How Much Is Your Website Worth?
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Do You Know How Much Is Your Website Worth?

How Much Is My Website Worth?

To Discover The Worth Of A Website Means Webmaster. Meanwhile, Some Webmasters Usually Desire To Know Number Of People Visiting Their Site While Others Wants To Know The Worth Of Their Site As An Investment. Website Can Worth More Than People Assume They Worth And Most Webmasters Will Like To Measure The Worth Of Their Website For So Many Reasons. However, In This Article, We Will Look Into Ways Or Factor That Will Help Us Know How Much Your Website Can Worth.

Below Are Six Methods That Can Enable You Have Some Knowledge About How To Calculate The Worth Of Your Website:

6. Traffic Value Valuation Method
Traffic Value Valuation Method Is An Approach Used In Calculating The Worth Of A Site, Mostly Site That Have Value But Are Yet To Be Monetized. This Method Is Based On Discovering The Top Key Phrase Or Phrases That Drive Most The Traffic To A Website And Finding The Cost-per-click Value Of The Keywords. Once You Discover These Terms, Then Go To Google Adword’s Keyword Too And Enter Term, You Will Find The Approximate Cost For The Terms. If The Amount Of Traffic Is Going Bankruptcy, Multiply The Cost Per Click With The Visits.  

This Is The Formula For Traffic Value Method:
Cost Per Click X Number Of Monthly Unique Visitors From That Keyword

Then Multiply Your Result By An Amount Around 45% To Get The Percentage Of The Total Traffic Value, This Will Give You A Clear Picture Of The Traffic Will Cost And An Idea Of How Much Your Website Worth.

5. Customer Value Method
If You Want To Sell Your Site And The Buyer Has Your List Of Customers Already, The Buyer May Know What List Is Worth. These Are A Few List Owners Use:
* Dollar Per Email ( DPE) And

* Life Time Value Of A Customer (LTV)

a.) Dollar Per Email:
Dollar Per Email (DPE) Enables A List Owner To Know Every Email They Have In The List That Matches The Current Demographics Of Their List. If They Are Able To Get $3 Per Email And As Well Find Websites To Buy The Lists With Emails That Match Their Demographics, The List Is Worth $3 Per Mail. So Multiply The Number Of Emails By 3 And Get Your Value And If The Site Already Generates Income From Other Sources, Add The Value Of This Other Sources With The Value You Got Earlier To Determine The Overall Value Of Your Website.

b.) Life Time Value Of A Customer:
You Need To Download The Harvard That Calculates The Life Time Value Of A Customer In Order To Understand This Type Of Calculation, When You Also Consider Other Expenses In The Business And The Acquisition Cost Of A Customer. Understanding LTV By Your Buyer Will Help Them Determine How Much They Can Spend For A Site X The Number Of Customers.

4. Comparable Sales Method
Comparable Sales Are Called COMPS In The Real Estate Market And It Is Found By Searching For Related Sites In Your Niche That Are Closer To Your Site’s Age, Revenue And Traffic, This Is Because The Closer The Numbers Are For A Comparable Site, The Higher The Value Of You Your Website.
Two Step Steps For The Comparable Value Formula:
* Step 1: Add “won Price” For All Sites In The Comparable Listing 

* Step 2: Find The Average Price Of Comparable Sites

However, Drop The Highest And Lowest Priced Site That Were Sold To Get A Better Valuation  

3. Revenue Multiple Method
Buyers Like Using This Method, And In This Method, You Need To Divide The Monthly Or Yearly Profit By The Sales Price. There Are Factors In Determining The Multiple In Which Age Is Also Involved Because The Buyer May Have Additional Sites In That Niche Or May Know Ways To Increase His Revenue For The Site That You As The Current Owner Is Not Using, This Is Why They Will Pay A Higher Multiple.  

Formula For Multiple Valuation Method:

Monthly Revenue (MR) Divided By Sales Price (SR) = X

Where X Is The Number Of Months It Would Take To Earn Back The Purchase Price Of The Site With Current Monetization Methods.

2. Reverse Engineering Cost Method
In This Method, You Have To Calculate The Price To Build A Site From The Scratch To Match The Site Being Sold In Order To Know How Much Your Website May Worth. The Formula For This Method Is As Follows:
Cost To Build Site + Cost To Drive The Same Amount Of Traffic + Time Factors = Value

1. Common Factors
Common Factors Are The Major Factors That Will Determine And Influence The Worth Of Your Website And Will Enable You Quickly Know How The Worth Of Your Website Easily When You Determine Them, These Factors Are:
* Age Of Your Website

* Domain Appraisal

* Website Authority

* Web Traffic

* Google’s PageRank Ranking Metric

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